Furnace Replacement Cost in Ottawa (2026)

Furnace Replacement Costs in Ottawa for 2026

A new furnace in Ottawa costs between $3,500 and $8,000 installed, with the average homeowner paying $4,500-$6,000 for a high-efficiency gas furnace including installation, permits, and old furnace removal. Mid-efficiency gas furnaces (80% AFUE) cost $2,500-$4,000 installed but are being phased out — most Ottawa contractors now recommend high-efficiency models. High-efficiency gas furnaces (95-98% AFUE) cost $3,500-$6,500 installed and save 15-20% on gas costs compared to mid-efficiency units. ...

Furnace Efficiency Ratings Explained

AFUE (Annual Fuel Utilization Efficiency) measures how much of the fuel your furnace converts to heat. A 95% AFUE furnace converts 95 cents of every gas dollar into heat, while an 80% furnace wastes 20 cents of every dollar up the chimney. The savings from upgrading from an 80% to a 96% furnace are significant in Ottawa. On a typical $2,000 annual gas bill, the higher efficiency saves approximately $400 per year — paying for the cost premium within 3-5 years. Two-stage furnaces ($500-$1,000 mo...

Signs You Need a New Furnace

Age is the primary indicator. Gas furnaces have an average lifespan of 15-20 years. If yours is approaching or past this age, replacement is more cost-effective than expensive repairs. Electric furnaces typically last 20-30 years. Repair frequency: if you've had two or more repairs in the past two years, or if any single repair exceeds 50% of the cost of a new furnace, replacement is the better investment. The '5,000 rule' is helpful — if the age of the furnace multiplied by the repair cost exc...

Furnace Installation Process

Professional furnace installation in Ottawa takes 4-8 hours for a like-for-like replacement and 1-2 days if ductwork modifications or new venting are needed. High-efficiency furnaces use PVC vent pipes through an exterior wall rather than a chimney, which is simpler and less expensive to install. However, building code requires specific vent termination locations — clearances from windows, doors, gas meters, and property lines must be maintained. Your installer will determine the optimal vent l...

Choosing an HVAC Contractor in Ottawa

Get at least three quotes from licensed HVAC contractors. In Ontario, gas furnace installation requires a G2 gas fitter licence. Verify licensing through the TSSA website. Quote comparison should include: furnace brand, model, and AFUE rating, warranty terms (parts and labour separately), whether the quote includes permit and inspection fees, old furnace removal and disposal, thermostat upgrade (if applicable), and any ductwork modifications. Prefer contractors who perform a proper heat loss c...

Frequently Asked Questions

How much does a new furnace cost in Ottawa?

A high-efficiency gas furnace costs $3,500-$6,500 installed. Mid-efficiency units cost $2,500-$4,000, and premium modulating furnaces cost $5,500-$8,000. The average Ottawa homeowner pays $4,500-$6,000 for a quality installation.

How long does a furnace last in Ottawa?

Gas furnaces typically last 15-20 years with annual maintenance. Electric furnaces last 20-30 years. If your furnace is over 15 years old and requiring repairs, replacement is usually more cost-effective.

What size furnace do I need for my Ottawa home?

Furnace sizing depends on your home's square footage, insulation levels, window quality, and layout. A proper heat loss calculation (Manual J) is the only accurate way to determine sizing. Generally, Ottawa homes need 40,000-100,000 BTU depending on size.

Are high-efficiency furnaces worth it in Ottawa?

Yes. The 15-20% gas savings from upgrading from 80% to 96% AFUE typically pays for the cost premium within 3-5 years. With Ottawa's long heating season, the lifetime savings are substantial — $5,000-$10,000 over the furnace's life.

Can I get rebates for a new furnace in Ottawa?

Enbridge offers rebates up to $1,000 for high-efficiency gas furnaces. The Canada Greener Homes Grant may provide additional rebates. Heat pump installations may qualify for up to $5,000 in federal grants.

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