Furnaces

Oil heating isn’t as common as it once was, mainly because natural gas is cheaper for many people. However, in Canada’s Northern Territories and in the Atlantic Canada maritime provinces, many homes still rely on oil furnaces to stay warm because natural gas isn’t an option everywhere.

This guide will cover everything you need to know about oil furnaces, including their advantages and disadvantages, how much they cost, what goes into installing one, and more.

What Is an Oil Furnace and How Does It Work?

An oil furnace is a device used to heat a home by burning heating oil using electricity to produce warmth. Although it’s been a traditional heating option for decades, most countries, including Canada, are phasing it out.

When your home gets too cold, a thermostat notices and signals the furnace to warm things up. The furnace then pumps oil from a tank to a burner, turning it into warm air or hot water, depending on your system (central forced-air system or hydronic heating system).

For homes with air systems, also known as central forced-air systems, a network of ducts spreads the heated air around your house.

If your home uses a water system, also known as hydronic heating, the oil furnace heats water that’s then moved to either baseboards or radiators to give off heat.

Sizing and Heating Capacity

The size of the furnace you need depends on several factors, including the size of your home, its insulation quality, the climate you live in, and your personal heating preferences.

Here’s a simplified chart to show the relationship between home size and the required furnace capacity, measured in BTUs (British Thermal Units).

Oil Furnace Efficiency Ratings

Efficiency ratings for oil furnaces are measured by their Annual Fuel Utilization Efficiency (AFUE) percentage, which tells you how much fuel becomes heat for your home. Most new oil furnaces have between 84% and 90% AFUE ratings and don’t burn as efficiently as gas ones, ranging from the legal minimum to more efficient models up to 98% AFUE.

However, if you have an older furnace that hasn’t been well-maintained, its efficiency could drop to the 60s or even lower.

If you use 2,500 liters of heating oil over winter, at CAD 1.69 per liter, your total cost for heating oil would be CAD 4,225.

With an 85% efficiency rating, your effective heat usage is 2,125 liters (85% of 2,500 liters), and the cost for the heat actually used is approximately CAD 3,591.25. The rest, CAD 633.75, essentially pays for the system’s inefficiency.

Tip: Combine a heat pump with an oil furnace backup for an efficient heating solution. It provides adequate cooling and heating for most of the year, with the oil furnace kicking in for extra warmth during colder temperatures.

To know more, you can read our detailed guide on hybrid heating.

Oil Furnace Environmental Impact

While generally not emitting carbon monoxide into homes, oil furnaces contribute significantly to environmental pollution.

According to the Quebec government, oil heating systems produce around a million tonnes of CO2 annually, equivalent to the emissions from 300,000 cars. Besides CO2, these systems also emit nitrogen oxide, sulfur dioxide, and fine particles, which can harm health and the environment.

In response, Canadian provinces are taking action:

• Quebec has banned oil-powered heating in new construction projects as of December 31.
• Nova Scotia plans to ban oil-fired heating equipment in new buildings by 2025.

Other Canadian provinces still permit using oil furnaces but with specific conditions focusing on efficiency and emissions to minimize environmental impact.

Furthermore, due to the carbon tax, heating oil costs are likely to increase, making other heating sources like heat pumps more cost-effective, in addition to being better for the environment.

How Much Does an Oil Furnace Cost?

An oil furnace typically costs between $5,000 and $7,000, with some high-efficiency models reaching up to $10,000. For those considering a replacement, the average cost is similar to other furnace types and ranges from $3,500 to $6,000.

Here’s a table showcasing some of the best brands for oil furnaces and their costs:

Additional Furnace Installation Costs

Pros and Cons of Oil Furnaces

Oil furnaces are a traditional choice for many, offering specific advantages and disadvantages compared to natural gas or electric systems.

Pros

1. Cost-Effective Replacement in Certain Cases: Replacing an old oil furnace may be more cost-effective initially than converting to gas or propane, but is likely to be more expensive in the long run.
2. Control: Homeowners have complete control over their oil supply without reliance on utility companies.
3. Heating Output: Some oil furnaces have higher BTU output.
4. Independence: These systems don’t require pipeline infrastructure, offering flexibility in remote locations.

Cons

1. Storage: Oil heating requires a storage tank, adding complexity and space requirements.
2. Higher Operating Costs: Day-to-day running costs are higher than those for gas furnaces.
3. Maintenance: Oil systems need frequent maintenance and cleaning due to soot and dirt.
4. Price Volatility: Oil prices can fluctuate widely, similar to gasoline, affecting heating costs.
5. Supply Management: Homeowners must monitor and replenish their oil supply.
6. System Separation: Unlike integrated HVAC systems, oil heating and air conditioning systems are separate, potentially requiring services from different providers.
7. Limited Service Providers: Fewer technicians specialize in oil furnace maintenance due to its decreasing popularity.
8. Higher Home Insurance Costs: Many insurance companies may charge substantially higher premiums due to the perceived risk of having a large oil tank in your home.

Installation and Maintenance Tips

Here are some essential tips to keep your oil-powered heating system in top condition:

• Change Your Air Filter Regularly: Aim to replace the air filter at least twice yearly to maintain air quality and furnace efficiency.
• Inspect the Furnace Area: Before each heating season, check around your furnace. Ensure nothing is hitting it, and keep the area clear within a two-foot radius. Look for any buildup on the floor around your furnace. If you spot anything, avoid touching it and call an HVAC professional.
• Annual System Inspection: Have a professional inspect your system before the onset of cold weather to ensure it’s in good working condition.
• Keep Flammables Away: Keep clothing, boxes, newspapers, and other flammable materials away from the furnace. These items can easily catch fire and may also void any service agreements.
• Monitor Your Fuel Level: Regularly check your heating oil levels to avoid running out in the middle of winter. Ensuring you have enough fuel is critical, especially during peak cold periods. In an emergency, you can use kerosene or diesel to run your furnace (not recommended for long-term usage).
• Cleaning Your Furnace: For cleaning, first, turn off your furnace and let it cool down to avoid any burns. Then, use a vacuum with a hose attachment to remove dust and debris around the unit.
• Don’t Turn Off Furnace in Summer: Turning off your oil furnace in the summer is not recommended. Keeping it on prevents the system from seizing and remains ready for use when temperatures drop.

Oil Furnace Considerations

Here are key considerations tailored to homeowners looking to understand and possibly choose an oil furnace for their heating needs:

• Assess Your Space: Consider the size and insulation quality of your home. A larger, less insulated space will require a furnace with a higher BTU output for efficient heating.
• Operating Costs: Be aware that oil prices can be volatile, potentially leading to higher operating costs over time. Compare these costs with those of alternative heating options.
• Service Availability: Given the fewer service providers for oil furnaces, check the availability of qualified technicians in your area.
• Fuel Storage: Consider the logistics of oil storage, including tank size, location, and the need for regular refills. If propane is more readily available or cost-effective in your area, consider installing a gas conversion burner to easily switch your system from oil to propane or natural gas.
• Longevity and Upgrades: Think about the longevity of the system and the potential for future upgrades. As energy prices and technologies evolve, ensure your furnace can be efficiently operated or replaced.
• Regulations: Stay informed about local and national regulations regarding your area’s oil furnace installations, emissions, and potential bans or restrictions.

For more information: Complete Furnace Buying Guide

Oil Furnaces vs Other Furnaces

Let’s talk about how different types of furnaces stack up against oil furnaces and what factors you should consider when choosing.

Electric Furnace vs Oil Furnace

• Efficiency and Operating Costs: Electric furnaces are known for their high efficiency, often operating at 100% since all the electricity directly produces heat. However, that doesn’t mean they are cheaper. In fact, they are way more expensive to run than an oil furnace.
• Installation and Maintenance: Electric furnaces are generally cheaper and easier to install than oil furnaces, as they don’t require a fuel storage tank or a chimney for exhaust. Maintenance for electric furnaces is also typically more straightforward and less costly, with no need for fuel delivery or cleaning of combustion by-products.
• Environmental Impact: Electric furnaces produce no on-site emissions, making them a cleaner option environmentally.
• Durability and Lifespan: An electric furnace might offer a longer, less troubled service life due to its simplicity. However, an oil furnace can also be durable with diligent maintenance.

Propane Furnace vs Oil Furnace

• Efficiency and Operating Costs: Propane furnaces generally offer higher efficiency and cheaper operating costs than oil furnaces.
• Environmental Impact: Propane burns cleaner than oil, producing fewer emissions, such as carbon dioxide, sulfur dioxide, and particulates.
• Installation and Maintenance: Both propane and oil furnaces require a storage tank and regular fuel deliveries. However, propane tanks can be either above or below ground and are subject to stricter regulations because propane is a gas under pressure.
• Safety and Storage: Both fuels require safe storage, but propane, a gas at room temperature and pressure, poses different risks than liquid heating oil. Propane tanks are built to withstand pressure and are equipped with safety valves. Still, leaks can lead to explosive hazards if the gas is not handled properly. In the case of an oil furnace, an explosion is very unlikely.

Comparing Brands and Models

As the Government of Canada moves towards phasing out oil furnaces to encourage more environmentally friendly heating solutions, the availability of oil furnaces from major brands has become more limited.

However, several reputable brands still offer quality oil furnaces for those in need.

Armstrong

Armstrong offers a range of oil furnaces from $3,400 to $10,300, including installation. These units, featuring Variable Speed Blower and Single-Stage Performance, achieve a maximum efficiency of 85%.

Originating from the Lennox Furnace Company in 1928, Armstrong provides dependable options for homeowners seeking efficient heating solutions.

Carrier

Carrier’s oil furnaces are priced between $3,800 and $9,000 with installation. Known for their ultra-quiet operation, Carrier furnaces offer modulating and two-stage heating, achieving up to 87.5% AFUE. Some models are ENERGY STAR® certified.

Since its acquisition by United Technologies Corporation in 1979, Carrier has maintained its reputation for quality and innovation, though at a premium price point, reflecting its standing in the HVAC industry.

Lennox

With prices ranging from $4,200 to $9,500, including installation, Lennox positions itself as a premium brand in the oil furnace market.

Offering units with a maximum efficiency of 85%, Lennox caters to homeowners prioritizing advanced technology and efficiency in their heating solutions.

Lennox is a noteworthy option for those willing to invest in a higher-end heating system despite the higher cost.

Rheem

Rheem’s Classic Series oil furnaces, available for $4,000 to $10,000 with installation, offer up to 86.5% AFUE. Rheem, owned by The Paloma Group, is known for balancing cost and efficiency, providing several models to fit different heating needs.

While Rheem furnaces are lauded for their reliability, they represent a middle ground in the market, offering solid performance without leading the pack in innovation or advanced features.

Trane

Trane’s oil furnaces, including the 85 Single-Stage Variable Speed and the 80 Single-Stage models, are priced between $3,800 and $9,400, installation included.

As a brand acquired by Ingersoll Rand in 2008, Trane is recognized for manufacturing products in the USA, appealing to homeowners seeking American-made reliability.

Conclusion

With options from top brands like Armstrong, Carrier, Lennox, Rheem, and Trane, finding the furnace that aligns with your needs and budget is crucial.

As Canada’s go-to source for heating & air conditioning insights and quotes, we’re here to simplify your decision. We offer clear, no-obligation quotes to help you compare the best furnace tailored to your home.

Ready to find your ideal furnace? Get in touch for your free quote today.

Electric furnaces are increasingly becoming a popular choice amongst Canadians. Why? They’re reliable and run clean without relying on fossil fuels.

In this guide, we will discuss the top electric furnace brands available in Canada, their costs, and reviews. We will also compare the advantages and disadvantages of electric furnaces over their gas counterparts.

What Is an Electric Furnace and How Does It Work?

An electric furnace is a heating system that uses electric heating elements to warm air distributed throughout a building.

Electric furnaces have been part of home heating solutions for many years. Their extensive history dates back to their emergence in the early 18th century.

The main difference between an electric and a gas furnace is their heat source and operation method. Unlike gas furnaces that burn natural gas or propane to generate heat, electric furnaces convert electricity directly into heat through heating elements made of metal coils.

Canada’s government advises an electric furnace should not have an input rate of more than 65.92 kW (225,000 Btu/h).

Heating and Cooling With an Electric Furnace

While an electric furnace excels at heating, integrating it with an air conditioning unit allows for a unified heating and cooling system.

Split Systems are the solution for heating and cooling, featuring an outdoor condenser and an indoor air handler (your furnace). This setup enables the furnace to circulate heated and cooled air, depending on the season, without directly cooling the air.

Electric Furnace Sizes

Here’s the electric furnace output needed for different home sizes across various climate zones.

The climate zones are categorized as mild, moderate, and cold, each requiring a different BTU per square foot estimate:

• Mild climates: Approximately 30 BTUs per square foot
• Moderate climates: Approximately 45 BTUs per square foot
• Cold climates: Approximately 60 BTUs per square foot

Electric Furnace Heating Process — Step-by-Step

Electric furnaces work like a hair dryer. The process of an electric furnace works as follows:

1. When the home temperature drops below the thermostat setting, it sends an electrical signal to the furnace to start heating.
2. The signal causes relays within the furnace to close, enabling electricity to flow to the heating elements.
3. The heating elements resist the electrical flow, causing them to heat up rapidly.
4. The furnace’s blower motor activates to draw room-temperature air into the furnace through the return air ducts.
5. This air moves over the hot heating elements, absorbing heat and increasing temperature.
6. The blower forces the heated air through the furnace’s heat exchanger into the home’s ductwork.
7. The ductwork distributes the warm air throughout the house via vents.
8. Once the indoor temperature matches the thermostat setting, the thermostat signals the furnace to stop heating.
9. The blower may continue to run briefly, pushing the remaining warm air into the house to use residual heat efficiently.
10. The system goes into standby mode until the temperature drops again, restarting the cycle as needed.

Parts of an Electric Furnace

Electric furnaces convert electricity directly into heat using heating elements. On the other hand, gas furnaces burn fuel to create heat, requiring additional components like a gas valve, burner assembly, and exhaust flue to manage combustion and venting safely.

Here’s a breakdown of the main parts of an electric furnace and their functions:

• Thermostat: Controls the indoor temperature by signaling the furnace to heat up or shut down, maintaining your desired comfort level.
• Heating Elements: The primary source of heat in an electric furnace. These elements (made of nickel-chromium) heat up as electricity flows through them.
• Blower Motor: Circulates warm air throughout your home and evenly distributes air for consistent warmth.
• Air Filter: Cleans the air passing through the furnace, improving your home’s air quality by trapping dust and other particles.
• Heat Exchanger: Safely contains the heating process, ensuring only clean, warm air is circulated into your living spaces.
• Return Air Ducts: Channels that return cooler air from the house to the furnace for reheating, crucial for efficient air circulation.
• Supply Ducts: Distribute the heated air from the furnace throughout your home to maintain comfortable temperatures.
• Sequencer: Controls the order in which heating elements activate, ensuring balanced heating and electrical load management.
• Relays and Transformers: Manage electrical connections and power distribution to the heating elements and blower motor, ensuring safe operation.
• Emergency Shut-off Switches: Provide a safety mechanism to turn off the furnace immediately if a malfunction is detected, preventing potential hazards.

Best Electric Furnace Brands

Not all HVAC brands carry electric furnaces, but there are a few reputable brands that do. Here’s a look at some of the top brands offering electric furnaces:

Goodman

Goodman owns and manufactures the Direct Comfort brand, which is available exclusively online. Direct Comfort electric furnaces are less expensive than Goodman’s despite having the same manufacturing process and warranty conditions.

The heating capacity of Goodman electric furnaces spans from 10,240 to 68,240 BTUs. They have a lifespan of 15 to 30 years. However, there may be a slight decrease in efficiency after the 15-year mark. The price range can be anywhere from $3,600 to $5,000 (including installation)

Read also: Goodman Furnace Review & Buying Guide.

Trane

Trane is another brand that offers electric heating solutions through a different product line: wall-mounted electric unit heaters. Trane units are designed for those seeking efficient, space-saving heating options, and the range offers heaters with capacities from 5,119 to 16,380 BTUs per hour.

They have a lightweight design, with all units weighing less than 30 pounds. Trane offers a broad selection of pre-engineered, factory-installed control options. This means a smoother, more straightforward setup process for homeowners and installers alike.

York

York electric furnaces caters to those on a tight budget, offering units priced between $1,200 to $2,300 or $2,600 to $7,400 with installation included. This brand is affordable for homeowners needing efficient heating without a hefty investment.

While York may not offer the most advanced features on the market, its electric furnaces are reliable and get the job done, making them a practical option for everyday heating needs.

York manufactures all residential HVAC products in Wichita, Kansas.

Dettson

Dettson distinguishes itself in the electric furnace market as the sole manufacturer offering modulating and 2-stage furnaces with capacities at the lower end of the spectrum, specifically 15 kBTU and 30 kBTUs.

The company’s Chinook line introduces further versatility with its capability to be powered by propane with the help of a conversion kit.

Dettson supports its products with a 10-year warranty on parts for residential applications.

Winchester

Winchester positions itself within the electric furnace market with its forced air furnaces, priced between $1,200 and $1,400. The brand offers a standard 5-year limited warranty on parts.

Notably, some units from Winchester come equipped with a maintenance-free adjustable speed ECM (Electronically Commutated Motor) constant torque blower. This feature is particularly beneficial as it supports 2 to 3.5-ton air conditioning and heat pump applications.

How Much Does an Electric Furnace Cost in Canada?

The cost of an electric furnace in Canada can vary widely depending on the type of furnace, installation requirements, and additional upgrades or modifications needed for your home.

• Mobile Home Electric Furnaces: These are typically priced between $1,000 and $2,000. They are designed specifically for compact spaces within mobile homes.
• High-efficiency Electric Furnaces: For those looking for more energy savings, high-efficiency models range from $1,200 to $7,000.

Use our furnace cost calculator to get estimated prices.

Here’s a breakdown of the expenses you might encounter:

Removal of Old Furnace

If replacing an existing furnace, the removal cost usually falls between $500 and $600.

Ductwork

If your home doesn’t have ductwork, installing it can cost between $1,500 and $7,000. The price depends on the installation’s complexity and your home’s size. If your home already has ducts installed, they may still need cleaning, which might cost up to $500.

Installation Labor Costs

Installing an electric furnace involves labor costs ranging from $50 to $100 per hour. The installation process typically takes around 10 hours, depending on the job’s complexity.

Electrical Circuit and Wiring:

Upgrading your electrical system to handle the new furnace can cost between $500 and $2,000 if additional amperage is needed. This ensures your home’s electrical system can safely support the furnace’s operation.

Permits and Inspections

Some localities require permits and inspections for new furnace installations. These permit fees can range from $100 to $500, depending on your area’s regulations.

Gas vs. Electric Furnace Operational Cost

Although electric furnaces are 100% efficient, the cost of electricity compared to gas can make them seem more expensive to operate.

For example, producing the same amount of heat might cost about 10 times more with an electric system than with a gas system in some areas.

Generally speaking, the electric furnace’s monthly operating cost can exceed $500 or even $1,000, based on a usage of 9 hours per day at a power consumption rate of 18000 watts and an electricity price of $0.192 per kWh (National Canadian Average).

However, this doesn’t mean electric furnaces are a bad choice. Electric furnaces are a viable option in areas where gas is unavailable or if you’re looking for a safer, simpler heating solution without venting exhaust gasses.

To make electric heating more affordable, consider these strategies:

• Energy Efficiency Upgrades: Improving your home’s insulation and sealing leaks can significantly reduce the amount of heat needed, making electric heating more cost-effective.
• Time-of-Use Rates: Some utilities offer lower electricity rates during off-peak hours, which can make electric heating more economical.
• Utilize Solar Panels: If you want a long-term strategy to reduce electric heating costs, consider investing in solar panels.

If you’re still concerned about the higher operational costs of electric heating, heat pumps can be a compelling alternative. They work by transferring heat from the outside air into your home during the winter, and they can achieve efficiency rates of over 300%.

When Should I Consider an Electric Furnace?

Electric furnaces can be more expensive than gas furnaces due to higher energy costs. However, there are several factors to consider that make an electric furnace the right choice for you.

• Availability of Utilities: If natural gas is not readily available in your area (parts of Newfoundland and Labrador or remote communities in the territories), an electric furnace becomes a practical choice. In regions where connecting to a gas line is not feasible or overly expensive, electric heating offers a viable alternative.
• Environmental Considerations: For Canadians prioritizing a lower carbon footprint, electric furnaces are attractive, especially in provinces like Quebec, British Columbia, and Manitoba, where a significant portion of electricity is generated from renewable sources like hydroelectric power.
• Installation and Maintenance Costs: Generally, electric furnaces are cheaper to install than gas furnaces. They don’t require gas lines or venting systems, which can reduce initial installation costs.
• Safety: Electric furnaces eliminate the risk of carbon monoxide poisoning and gas leaks, offering a safer alternative for your home. If safety concerns are paramount for you, this might tilt the balance in favor of electric heating.
• Cost of Electricity vs. Gas: This is a crucial consideration. In provinces where electricity costs are relatively low, such as Quebec, or where gas prices are higher, the operational costs of an electric furnace might be comparable to gas heating.
• Future Plans: If you’re considering transitioning your home to be more energy-efficient or installing solar panels, an electric furnace could integrate well with these future upgrades.

Things to Consider While Choosing an Electric Furnace

There are several key factors you’ll need to consider to ensure you get a system that meets your heating needs efficiently and cost-effectively.

Square Footage

The size of the furnace, measured in BTUs (British Thermal Units), should match the area to be heated.

Remember that the cost can vary due to factors like furnace efficiency, brand, and installation complexities.

CFM Rating

When selecting an electric furnace, you’ll come across different models based on their ratings of CFM (Cubic Feet per Minute). CFM measures how much air the furnace blower can move each minute.

Here’s a simple breakdown to help you understand what each CFM rating means for your home:

For example, if you have a 4-ton air conditioning system, you need a furnace that can handle enough airflow. Since each ton of air conditioning requires about 400 CFM, a 4-ton system would need 400 CFM x 4 tons = 1600 CFM.

Therefore, for a 4-ton AC system, you should choose a furnace that provides at least 1600 CFM. You could choose a 1600 CFM or a 2000 CFM electric furnace based on the options listed.

Type of Electric Heating System

Here’s a simple breakdown of the five basic types of electric heating systems available in Canada:

1. Forced-air Systems: These systems push heated air through ducts in your home. They can use electric resistance heating, heat pumps, or both to warm the air.
2. Hydronic or Hot Water Systems: These use water heated by an electric boiler to warm your home. The hot water circulates through radiators or underfloor pipes to distribute heat.
3. Room Heaters: Perfect for heating individual rooms or small spaces, these standalone units come in various styles and can be easily installed where needed.
4. Radiant Systems: These provide heat directly from the floor, panels, or ceilings, offering a comfortable warmth without circulating air, ideal for reducing allergens.
5. Combination Systems with Plenum Heaters: Installed in the hot air plenum of your central furnace, these systems add electric heating to your existing furnace.

Installation Location

Ductwork installation is generally cheaper in attics and basements where access is easier, reducing hourly labor costs. Also, installing ducts in living areas often requires additional construction work, like removing and replacing drywall, increasing labor and material costs.

Get Quotes for Installing Electric Furnaces

Looking for a new electric furnace? Let us help make it easy. At FurnacePrices.ca, you can get free quotes from trusted local HVAC contractors. There’s no pressure to buy.

We check all our partners to ensure you get advice and quotes from the best. Just fill out a quick form and get the necessary information to choose the right furnace. Get free quotes today.

✔ Expert-reviewed for accuracy and completeness.

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The Best Furnaces – What to Buy

Furnace Prices and Replacement Costs

The average cost of buying a new furnace, or replacing your furnace in Canada varies based on a variety of factors. Typically, a new residential gas furnace including installation, will cost between $4,000 – $6,500 on average.

This price is just a general estimate of course, and you’ll typically have to get a free in-home estimate done by a local HVAC contractor to get an actual price based on your home and your needs, and budget.

Things that can affect the price include:

• Where you live (prices can vary by region/city/province, as well as rural vs urban areas)
• Your home (the size and age of your home can impact the type and size of furnace needed; every home is different)
• How old your current system is (older systems may need more retrofitting work to meet modern building codes)
• Is it a conversion? If you’re converting from oil or electric to gas or propane, this will typically be a bit more complex and expensive
• The brand and model of furnace you buy

These are some of the main factors that will affect the price of a new high-efficiency furnace for Canadian homeowners.

Top Furnace Brands

There are many furnace brands sold in Canada. They all have their pros and cons, however in most cases their products are actually quite similar.

Some of the most popular brands include:

• Lennox
• Carrier
• Goodman
• KeepRite
• Amana
• Trane
• Rheem
• Ruud
• Payne
• Napoleon
• York
• among many others

See our list of the Best Furnaces for more recommendation on which furnace brand and which model you should you buy.

Important Considerations About Furnace Reliability

One of a homeowner’s main concerns when buying a new furnace is which brand is most reliable and which one they should buy. But while some may be considered better than others, there is no definitive answer.

The reliability of a furnace often depends on a variety of factors, including how well maintained it is, if it’s properly-sized for your home, and importantly, the quality of workmanship on the installation.

Something most Canadian homeowners may not realize is that the HVAC contractor you select to buy your furnace from is just as important as the brand of furnace you choose.

Why? Because not only do you want an established and experienced company that will do a good job (just like any other home renovation job), but you will also be relying on this company to provide ongoing support.

That’s why we recommend choosing a company that offers a good warranty on the labour and installation (ideally, at least 1 year). And most importantly, they should have all the necessary licenses and certifications, insurance, and a good reputation.

That’s why we at FurnacePrices.ca created our independent 15-point Certification program to make choosing a reliable and trusted local HVAC contractor quick and easy for Canadians!

When Should You Replace Your Furnace?

1. Age of your furnace: If your furnace is over 15-20 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 (a measure of efficiency), 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.

Learn more about when to consider replacing your furnace.

How long does a furnace usually last?

Most furnaces should last at least 10 to 15 years, and can last as long as 20+ years with proper maintenance and a little bit of luck. That being said, you may wish to replace your furnace before that point if it starts to require frequent costly repairs and replacing it becomes a more cost-effective option.

Further reading: The TRUTH About Furnace (and A/C) Reliability

High-Efficiency Furnaces – The Basics

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 from burning natural gas or propane, 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.

Modern forced-air furnaces have an energy-efficient fan and motor and certain models can precisely adjust to your home’s heating requirements throughout the day. This saves energy and maintains a more comfortable home.

For the most energy-efficient, quietest operation, and maximum comfort, look for a variable-speed/modulating furnace.

Or for a more budget-friendly option, consider a single or duel stage model.

We compare the pros and cons of different furnace types here >>

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, especially with rising energy costs.

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.

The following video covers some key factors when choosing a furnace for your home.

Or keep reading for more tips below.

Key Things to Know Before Buying a Furnace [Video]

FAQ

Furnace Types – Single Stage vs. Dual Stage vs. Variable Speed vs. Modulating Furnaces

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.

See here to read our more in-depth breakdown and comparison of furnace types.

Single Stage

As it sounds, only one stage.  With a single-stage model, your furnace is either on or it is off, there’s no in-between.

Pros of Single Stage Furnaces:

• somewhat lower initial price

Cons of Single Stage Furnaces:

• inefficient energy use
• inconsistent temperature delivery throughout your home
• inconsistent temperature control; frequent hot-cold fluctuations
• noisier as it always operates at max output, cycling on and off more frequently
• higher energy bills

Dual Stage

A dual-stage furnace has high and low settings. It starts off in the first stage which is low output.  The low output stage meets your home’s heating needs about 60-80% of the time.  It switches to the second stage which is high output in response to extreme cold weather.

Pros of Dual Stage or Two-Stage Furnace:

• somewhat better temperature control
• more efficient than single stage furnace
• adjusts to weather changes
• somewhat lower energy bills
• somewhat quieter

Cons of Dual Stage or Two-Stage Furnace:

• somewhat higher initial price than single stage

Variable/Multi-Speed

This refers specifically to the blower, which monitors and adjusts incrementally, to ensure the highest comfort and most precise heat distribution throughout your home.

Pros of Variable/Multi-Speed Furnaces:

• more efficient
• provides more precise airflow and indoor temperature
• quieter
• ECM (an energy efficient) motor: decreases furnace electrical energy consumption by 70% when used continuously

Cons of Variable/Multi-Speed Furnaces:

• somewhat higher initial price

Modulating

This refers specifically to the burner, which adjusts incrementally in order to respond to the heat demands of the home.

Pros of Modulating Furnaces:

• improved temperature consistency
• best temperature control
• most energy-efficient
• typically also equipped with variable speed blower

Cons of Modulating Furnaces:

• initial cost of purchase is usually more expensive

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 that 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 add-on. 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 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 in most cases, due to the high cost of heating oil and electricity in most regions.

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 generally not energy efficient, with some older models having an AFUE of only 60%. 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.

That being said, heat pumps are an increasingly common type of heating system in Canada. These systems can function as both a heating system, and an air conditioning system in the summer. And because they don’t burn fossil fuels, they’re seen as a key technology in meeting climate goals and reducing carbon emissions.

ENERGY STAR® Furnace Ratings Explained – Is it worth it?

When you see a home heating system with an ENERGY STAR certification in Canada you can rest assured that you are in the presence of an efficient furnace, and high-efficiency means the biggest bang for your energy dollar.

To qualify as an ENERGY STAR home heating system, it usually has to have an efficiency of 95% (AFUE) or more. That means that on average 95 cents of every energy dollar are going to actually heating your home, and that the unit has a fan efficiency of 2% or less. Note, ‘fan efficiency’ refers to the ratio of electrical energy consumption to the total energy consumption of the furnace during heating operation.

ENERGY STAR is administered and promoted in Canada by Natural Resources Canada and registered in Canada with the United States Environmental Protection Agency.

ENERGY STAR home heating systems allow you to save money while decreasing environmental emissions which reduces your ecological footprint.  That’s a win for your pocketbook and the environment.

Other Important Considerations

Warranty Coverage

The manufacturer’s warranty varies by brand and also which model you choose, with more expensive models typically having better coverage.

These typically range from 5 year limited parts warranties to 10-year, 20-year or lifetime warranties on key parts like the heat exchanger, and even ‘unit replacement guarantees’.

IMPORTANT: Be sure to register your warranty within the registration period after installation, which is typically either 60 or 90 days after installation, depending on the brand.

Be sure to carefully read the fine print and follow all the requirements to avoid voiding your warranty.

Some warranties, especially ‘whole unit replacement’ ones require annual maintenance and cleaning be done a certified technician.

Also be sure to store your warranty in a safe place in case you need it in the future. At FurnacePrices.ca, we offer free warranty storage and other free benefits when you sign up for a free account with us.

You may also get additional labour warranty coverage on the installation through your licensed HVAC technician who completes your new home furnace installation, typically for a period of one year, but sometimes longer.

Rebates and Incentives

Different provinces have different rebates and incentives available and these are subject to change at any time. In addition, local organizations like utility companies and municipal governments may also have their own HVAC grant programs.

The Canadian federal government announced in 2021 the creation of a grant program of up to $5,000 in incentives for Canadian homeowners to perform energy-saving home renovations, including upgrading the HVAC system. This program is known as the Greener Homes Program.

Check out the latest current heating & cooling government rebates and incentives in Canada.

Plus check out our Local Current HVAC Deals page for offers and promotions from local contractors.

Humidifiers and Air Filtration

These add-ons can help filter your home’s air and maintain optimal humidity, making air healthier and easier to breathe. 

Air filtration systems, especially those with HEPA filters, reduce allergens and pollutants and make breathing easier, while also reducing the chance of mold, asthma flair ups, and other skin and respiratory issues. It is important to change your air filter periodically in order to maximize the efficiency of your furnace.

With the COVID-19 pandemic, Canadians are more concerned than ever about indoor air quality and safety.

Zoned Heating

Zoned heating allows you to control the temperature of specific areas of the house, which is a fairly expensive upgrade. It can be beneficial especially with large homes, as it allows you to heat the rooms you use the most, while keeping the others at a lower temperature when you’re not using them.

Most houses are non-zoned = 1 thermostat that controls the heating of the whole house (natural gas furnace or propane furnace). Though individual vents may have manual switches to adjust the air flow for a particular room. Unless you have a system with an ECM motor, you should not close any air vents.

Furnace Sizing & Getting an Estimate

There is a common myth out there that square footage is the only factor required to determine the size and BTU output of a residential home heating system.  Actually, many factors need to be taken into account when determining the appropriate furnace size to heat your home.

Other factors that may be considered during a home assessment include:

• type of insulation used
• amount of insulation
• climate
• windows: size, type, amount, direction they face
• house material – vinyl siding vs. brick
• seals
• air leakage
• vents
• ductwork

One of our local certified HVAC professionals can assess all of these factors in order to provide you with a home heating system that meets your home’s needs. You can request a free quote from local professionals with the form above.

Summary of Key Points

• The minimum efficiency furnace you can purchase in Canada is now 95% AFUE
• Top high-efficiency furnaces on the market have AFUE of almost 99% AFUE
• The BTU rating needs to be considered when choosing the right size of heating system. Newer furnaces are more efficient so you generally won’t need as high a BTU rating as your old model. Your local expert will help you size your unit correctly.
• In some situations, a heat/loss calculation might need to be conducted by a professional to determine the right furnace for your home and qualify you for government rebates
• A high-efficiency furnace uses less energy and lowers your utility bills, helping offset the cost of upgrading
• Lowering the temperature on your programmable thermostat, even by 1 degree Celsius will result in a decrease on your home energy bill.

The only thing left to do is request a free quote from trusted local heating & cooling companies in your area!