Quick answer: what a new furnace costs in Ottawa
If you are budgeting for furnace replacement in Ottawa this year, these are the numbers to start with. All prices are typical installed ranges in Canadian dollars, before any rebates.
High-efficiency gas furnace (96–98% AFUE)
$4,500 – $8,500 installed.
Variable-speed or modulating furnace
Up to about $10,500.
Furnace and central AC replaced together
$8,000 – $15,000.
Biggest cost drivers
Furnace size and staging, venting changes, ductwork, and add-ons like a humidifier or smart thermostat.
Typical lifespan
15–20 years, so most Ottawa homeowners replace a furnace once or twice in the time they own a house.
Ways to lower the cost
Rebates where your home qualifies, financing from $49/month on approved credit, and replacing before an emergency forces a rushed decision.
Furnace replacement cost by furnace type
Every new gas furnace sold in Canada must now be at least 95% AFUE, so the old choice between “mid-efficiency” and “high-efficiency” is gone. Today the price difference comes mostly from how the furnace burns gas and moves air.
| System | Typical installed range (CAD) | Good fit for |
|---|---|---|
| High-efficiency gas furnace, single-stage or two-stage (96–98% AFUE) | $4,500 – $8,500 | Most Ottawa homes replacing an older furnace |
| Variable-speed / modulating gas furnace | Up to ~$10,500 | Larger or two-storey homes, people sensitive to drafts and temperature swings |
| Furnace + central AC combo | $8,000 – $15,000 | Homes where the AC is the same age as the furnace |
| Ducted cold-climate heat pump (existing ducts) | $9,000 – $18,000 | Homeowners moving away from gas, oil or propane, or adding a hybrid system |
| High-efficiency boiler (combi or heating boiler) | $7,000 – $15,000 | Homes with radiators or in-floor heating instead of ducts |
The final price depends on the home, the equipment and the venting and ductwork involved. Oria gives free estimates on new installations, so you get a firm number for your house rather than a guess.
Single-stage, two-stage or modulating?
A single-stage furnace is either fully on or off. It is the least expensive option and works well in smaller, well-sealed homes.
A two-stage furnace runs on a low setting most of the time and switches to high on the coldest days. You get longer, quieter cycles and more even temperatures between floors for a moderate step up in price.
A modulating furnace adjusts its flame in small steps to match the heat your home is losing. Paired with a variable-speed blower, it gives the steadiest comfort and the quietest operation, which is why it sits at the top of the price range.
What drives the cost of a new furnace
Two furnaces with the same sticker price can end up thousands of dollars apart once they are installed. These are the items that move the quote most often in Ottawa homes.
Correct size for your home
Furnace size is measured in BTUs, and it should come from a heat-loss calculation, not from the size of the old unit. Ottawa’s design temperature is about −25 °C, and an oversized furnace short-cycles, wears out sooner and leaves rooms uneven. Our guide to furnace sizing for Ottawa homes explains what goes into that calculation.
Venting and the “orphaned” water heater
High-efficiency furnaces vent through PVC pipe out a side wall instead of up the chimney. If your gas water heater shared that chimney with the old furnace, it may be left alone in a flue that is now too large and need a chimney liner or new venting.
The new vent and air intake also need a location that meets code clearances from windows, doors, gas meters and grade, and that will not be buried by snow.
Condensate drain
A 96–98% furnace produces water as it runs. It needs a drain close by, or a condensate pump if the floor drain is far away or the furnace sits below it.
Ductwork, return air and the gas line
Older Ottawa homes often have undersized return air or tired supply runs. A new furnace can only perform as well as the ducts let it breathe, so some installs include duct changes. Occasionally the gas line also needs to be resized or re-routed.
Add-ons
Many homeowners add equipment while the system is open. Typical installed costs:
- Furnace humidifier (bypass or fan-powered): $500 – $1,000; steam humidifier $1,200 – $2,200
- Smart thermostat: $250 – $600
- HRV or ERV: $2,500 – $5,500
Brand and equipment line
Oria is a Lennox authorized dealer and also installs Goodman and all major brands. Within each brand, price climbs with staging, blower type and features, so compare like for like when you look at quotes.
Ottawa-specific things that affect your price
Ottawa furnaces work hard. A typical heating season runs from October into April, with cold snaps that reach −25 °C to −30 °C, so equipment choice matters more here than in milder parts of Ontario.
Rural homes
In places like Greely, Osgoode, Carp, Richmond and Kemptville, many homes use propane or oil. A propane furnace needs the correct conversion and gas setup, and oil-to-gas or oil-to-heat-pump switches add work.
Gatineau
Oria holds the licences required to work in Quebec. Many Gatineau homes heat with electric baseboards, which changes the comparison toward a heat pump.
Finished basements
Tight mechanical rooms and finished ceilings can make venting and duct changes slower, which adds labour.
Timing
A planned replacement in spring, summer or early fall gives you time to compare options. A January breakdown leaves less room to choose.
Rebates and financing for a new furnace
Rebates
Rebates may be available, but they change often and depend on the equipment and your home. Some programs focus on heat pumps or smart thermostats rather than gas furnaces, so it is worth checking before you choose a system.
Oria will check current programs for your home during your estimate. You can also see what we track on our HVAC rebates page.
Financing
Financing is available from $49 per month on approved credit. That lets you replace a failing furnace now rather than nursing it through another winter. Details are on our financing page.
Repair or replace: when a new furnace makes sense
Most gas furnaces last 15 to 20 years. Once yours is in that range, every repair should be weighed against what a new furnace would cost. Our post on how long a furnace lasts covers the warning signs in more detail.
| Situation | Usually the better choice |
|---|---|
| Furnace under 10 years old, one failed part | Repair (most common repairs $150 – $900) |
| 10–15 years old, major part such as blower motor, control board or inducer | Depends: major parts run $600 – $2,000, so get both prices |
| 15+ years old with repeated breakdowns | Replace |
| Cracked heat exchanger | Replace in almost every case |
| Uneven heat, rising gas use, rooms that never feel warm | Have it assessed: may be ducts, sizing or an ageing furnace |
A cracked heat exchanger deserves a special mention. It can let combustion gases, including carbon monoxide, mix with the air in your home, and it is usually not worth repairing. Yearly maintenance is the best way to catch one early.
A simple rule of thumb: if a 15-year-old furnace needs a repair costing a third or more of a new one, put that money toward replacement instead.
How to compare furnace quotes
A low quote is only a good deal if it includes the same work. Ask each contractor these questions:
- Did you do a heat-loss calculation, or are you matching the old furnace size?
- What is the exact model number, AFUE and staging (single, two-stage or modulating)?
- Does the price include removal of the old unit, new venting, the condensate drain, and any chimney liner for the water heater?
- Is the thermostat included, and will it work with the new furnace’s staging?
- Who registers the manufacturer warranty, and what does it cover?
- Are the installers licensed gas technicians, and is the company TSSA registered?
Every Oria technician holds gas and refrigeration (AC) licences, and the company is TSSA and HRAI approved. Customers notice the difference in the details. Alex G. wrote: “Got my furnace installed by Oria Heating and Cooling the team did an amazing job, Clean professional and reliable…”
Get a firm price for your home
The ranges above will get you close, but the only accurate number is one built around your house. Oria has served Ottawa since 2005 and offers free estimates on new installations, with a 5.0-star Google rating from 396 reviews.
Book a visit through our furnace installation service or call (613) 866-1869. If you are also thinking about going electric, compare the numbers in our heat pump cost guide.
Frequently Asked Questions
How much does a new furnace cost in Ottawa in 2026?
A high-efficiency gas furnace (96–98% AFUE) typically costs $4,500 to $8,500 installed in Ottawa, before rebates. A variable-speed modulating furnace can reach about $10,500. Replacing the furnace and central air conditioner together usually costs $8,000 to $15,000. The final price depends on your home, the equipment you choose and any venting or ductwork changes, so a free in-home estimate gives you the real number.
Is it cheaper to replace the furnace and AC at the same time?
Often, yes. A furnace and central AC combo typically costs $8,000 to $15,000, compared with $4,500 to $8,500 for a furnace alone and $4,000 to $8,000 for an AC alone. Doing both in one visit saves labour, ensures the indoor coil and blower are properly matched, and avoids a second disruption a few years later. It makes the most sense when both systems are about the same age.
Why do furnace replacement quotes vary so much?
Quotes differ because they include different equipment and different work. One quote may be a single-stage furnace matched to the old size, while another includes a heat-loss calculation, a two-stage or modulating furnace, new PVC venting, a condensate pump and a chimney liner for the water heater. Compare model numbers, AFUE, staging and exactly what installation work is included before comparing totals.
Are there rebates for a new furnace in Ontario?
Rebates may be available, but programs change often and some focus on heat pumps, insulation or smart thermostats rather than gas furnaces. Eligibility depends on the equipment and your home. Oria checks the current programs for your home during a free estimate, and you can see the programs we track on our HVAC rebates page before you choose a system.
How long does a furnace replacement take?
A straightforward furnace swap in an Ottawa home is usually completed in a single day. Jobs that need new venting routes, a chimney liner for the water heater, duct changes or a new air conditioner at the same time can take longer. Your estimate will tell you the expected timeline, and the heat is typically restored the same day the new furnace goes in.
Can I finance a new furnace in Ottawa?
Yes. Oria offers financing from $49 per month on approved credit for new furnaces and other HVAC equipment. Financing lets you replace an old or unsafe furnace right away instead of paying for repeated repairs. Ask about financing during your free estimate, and the payment options can be built into your quote alongside any rebates your home may qualify for.
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