High-Efficiency Furnaces – Prices & Comparison

We take the confusion out of buying a new furnace or upgrading your old one, with our in-depth comparison of residential high-efficiency furnace prices, efficiency (AFUE) ratings, BTU output, installation costs, and major features for all the top furnace brands and models in Canada.

Natural gas furnaces are generally the most efficient and cost-effective type of forced-air furnace. Efficiency ratings have improved considerably in recent years and prices have come down as well, allowing for lower year-round heating costs for the average homeowner. With 2/3 of your home’s energy use devoted to space heating in the cold Canadian climate, you want to make sure that you are maximizing your energy dollars with a propane or natural gas furnace.

Although we’re discussing residential furnaces, these same systems are also frequently used in small and medium-sized businesses and other commercial spaces as well.

Frigid Canadian winters can leave you feeling like you’re stuck in a deep freeze.  Your home shouldn’t feel that way though.  Step out of the cold and into the warmth and comfort of your home, fueled by a modern energy-efficient furnace.

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• Furnace Prices – Major Brands
  • Other Brands
• Furnace Replacement Cost
• When Should You Replace Your Furnace?
• High-efficiency Furnaces – The Basics
• Furnace Types – Single Stage vs Dual Stage vs Variable Speed vs Modulating
• ENERGY STAR Furnaces – Are They Worth It?
• Fuel Types – Natural Gas, Propane, Oil, Electric
• Brand Comparison – Which Brand is the Best?
• Other Important Considerations
• Final Thoughts – Summary of Key Points

The following prices are meant as a general guideline only. Prices can vary significantly from one area or town to the next, from one company to another, based on local competition, how complicated of an install is required, and many other factors.

In Canada, the minimum efficiency rating that any new furnace can have is 92% AFUE, as mandated by the federal government.  Any ‘mid-efficient’ furnaces (80 – 90 % AFUE) you see advertised on manufacturer websites are mostly aimed at Americans where less efficient models can be sold due to the generally milder climate in much of the country.

So for Canadians, you’ll be buying at least a moderately efficient 92% AFUE furnace, though if you can afford to pay a little bit more — typically an extra few hundred dollars — we’d recommend at least a 95% or 96% AFUE ENERGY STAR model, which will often qualify you for rebates depending on where you live.

For “ultra high-efficiency” furnaces in the 97 – 98.7 % AFUE rating range, expect to pay at least $500 -$1000 more.

These prices will also vary a bit depending on the size of your home and the required size and BTU output of your new forced-air furnace.

Prices are including installation, though again, that will vary considerably from one home to the next.

Natural gas and propane furnace prices are generally similar, however because propane furnaces are often installed in more rural areas, prices may be somewhat higher.

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Other Furnace Brands

Although somewhat less popular, many of these brands are still common across Canada. Click for more info about each manufacturer, model details, and more.

Furnace replacement cost varies by make and model. Different brands and their individual models, efficiency ratings, and size/BTU output will vary in price.

Expect to pay about $2500 at the minimum for a new furnace including installation. On average, for a high-efficiency furnace with at least two stages, most homeowners in Canada will pay somewhere between $2500 and $5000 when all is said and done. Prices can stretch as high as $8000 – $10,000 if it’s a top of the line furnace, if it’s a complex installation (or conversion), if you live further from a large city, and factoring in other costs like financing interest over a period of many years.

In some parts of Toronto, we’ve seen people advertising furnaces as low as $1500 – $1800, which is in part due to relatively higher competition in the region. It is certainly possible to get a good deal and a bargain price. However in many cases these are not established businesses and you may be on your own after the install is complete. We generally recommend carefully researching the company you deal with.

“Like any home contracting job, you often get what you pay for.”

Some people we’ve spoken to ended up paying considerably more than the low advertised price after costly “extras” were added to the final bill.

We always recommend buying from a company that offers at least a 1 year warranty on labour and installation, in addition to the manufacturer’s warranty. This is another concern if you buy from someone advertising significantly lower prices than the average market rate, it’s more difficult to know if those units were bought directly from the manufacturer and whether the manufacturer will even honour the warranty.

Furnace rental or rent to own programs allow homeowners to replace their furnace without any upfront costs, and pay a flat monthly rate instead. These programs generally come with an included “protection plan” meaning the homeowner never has to pay for repairs or maintenance of the furnace. This may be a good option for some people, however note that the total cost paid will generally be higher overall than if you simply purchase your system, and pay in full after installation.

Installation Costs

Another factor in the cost of a new furnace is the installation. There are many variables at play, so it is impossible to give an estimate here. The best thing is to request a quote from a local company. Here are just a few things that can affect the installation cost of a new furnace:

• Location of furnace – is it easily accessible, is it in a crawlspace, etc
• Venting upgrades – older furnaces tended to be larger than newer models, meaning the plenum (the ductwork connecting to the furnace) must be retrofitted
• Modern safety codes – new safety codes can require upgrades to venting and piping, electrical wiring and so on
• Other extras – things like chimney liners, condensation draining, and so on can add to the final cost
• Conversions from oil or electric heat to propane or natural gas are also a bit more complicated and costly than a simple natural gas to natural gas furnace replacement.

Finally, the location of your home can affect the price offered by local suppliers. The closer you are to a large urban center, the higher the competition and thus the lower the prices. If you live in the countryside or a small isolated town, installers have to drive farther and unit delivery costs are higher. In addition, if they’re offering you a labour warranty, the potential cost of driving back out for service calls must be factored into their costs.

1. Age of your furnace: If your furnace is over ten years old there’s a good chance that it is not a particularly energy-efficient model or that it may no longer be operating at its initial efficiency level. Many homeowners don’t have their furnaces cleaned and properly maintained every year, which leads to a gradual reduction in operating efficiency. You may be surprised to learn that your 15, 20 or 25-year old furnace is actually only operating at 50 – 60% AFUE, meaning nearly half your utility costs are completely wasted. Upgrading to a new furnace could mean a reduction in up to 40% in annual heating bills.
2. Rising utility bills: newer furnaces, especially ENERGY STAR models (95% AFUE and above) waste less energy which means more money in your pocket. Greater efficiency also means less of an impact on the environment.
3. Broken furnace and/or expensive repairs: your furnace has reached the end of its lifespan and repair costs are more costly than purchasing new. Especially when you factor in the potential savings on your utility bills.

A furnace provides central heating throughout your home.  There are several types of heating systems with one of the most common in Canada being a forced-air furnace.  Forced-air furnaces work by blowing heated air through ducts that deliver the warm air to rooms throughout the house via air registers.  This is a preferred method amongst consumers because it provides heat quickly and it has a quick recovery time when temperature is decreased overnight to save energy, so it doesn’t take long for the home to warm back up again in the morning.

The forced-air furnace when coupled with an efficient fan and motor can help the air conditioning unit send cold air throughout the house as well.  Providing the consumer more value for their money.

Energy-efficient furnaces can also make your home more attractive for resale value, as more and more consumers are conscious of the environment and how their energy dollars are being spent. Replacing your furnace is a fairly significant investment, so knowing that it has been recently upgraded is always a bonus for a potential home buyer.

When choosing a furnace for your home it is important to educate yourself on the following factors: estimated annual energy consumption, operating cost and energy efficiency rating of the furnace.

These are the four major “types” of furnace, though a furnace can be both modulating and variable speed (as this refers to burner type and blower speed, respectively). Here’s a comparison of the pros and cons of each one.

Advanced Furnace Features

The following features and technology are often featured on top of the line ENERGY STAR furnaces. There is certainly nothing wrong with buying a heating system which doesn’t have any of these features, but for those looking for peak performance and efficiency, look for the following. However furnaces with these features rarely come cheap!

• ECM Motors
• Dual heat exchangers: when two heat exchangers are used the furnace is able to draw more heat from the burned gas, which makes them more energy efficient
• Ignition systems: pilot lights are becoming a thing of the past, in favour of an electronic ignition system which increases a furnace’s efficiency rating.
• Programmable & “smart” thermostats: Not a furnace feature per se, more of an addon. But programmable thermostats are easy to use and will save you money. New ‘smart’ thermostats can learn from your personal heating preferences and adjust your home’s heating automatically, like lowering the temperature during the day when you’re at work. Turning your thermostat down just one degree each night results in a 2% reduction (PDF) on your annual heating bill.

Choosing a Fuel Type for your Furnace – Propane vs. Natural Gas vs. Oil

When choosing a fuel type for your furnace the two major options for Canadians are: natural gas or propane. The biggest factor that must be taken into consideration when deciding between a natural gas or propane furnace is whether you live in an urban or rural area.  Your location will dictate which energy source is more appropriate for your furnace.  Most urban city centers are equipped with natural gas pipelines making it the obvious choice.

In rural settings natural gas pipeline infrastructure is not as readily available or may not be installed, which makes propane the most cost-effective energy source over oil and electrical heating. Propane is somewhat less efficient than natural gas but is still a good alternative. One downside is that propane heating requires the installation of a large tank on your property, which is refilled periodically.

Oil is becoming increasingly rare as a heating fuel for homes. Oil furnaces are not energy efficient, with some having an AFUE of only 60% (PDF). That means for every energy dollar only 60 cents is going to heat your home, and the rest is being wasted, making it significantly costlier to heat your home. Not only is money being wasted and energy lost, an oil furnace puts more strain on the environment by burning more fossil fuel, which increases your eco-footprint. This is why so many Canadians are choosing to make the switch away from oil heat.

And with the exception of people living in Quebec who get relatively cheap electricity from Hydro Quebec, homeowners with electric heating in Ontario and elsewhere are increasingly switching to natural gas or propane due to high heating costs.

For more information on conversions from oil or electric to propane or gas, see here.