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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 $2500 – $5000 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

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. 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. 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.