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Furnace Replacement Cost in the GTA: 2026 Installed Price Guide

📅 2026-08-04 · Direct Air Systems
Furnace Replacement Cost in the GTA: 2026 Installed Price Guide

A new furnace installed in a GTA home typically costs between $5,500 and $11,000+ CAD — installed, not equipment-only. That range covers a standard 96% AFUE two-stage furnace for a typical Toronto or Markham detached home through a top-of-line 99% AFUE modulating Lennox SLP99V in a larger home. All prices in this guide are installed costs in CAD: equipment, labour, Ontario TSSA permit, standard venting, and removal of your old furnace. Prices verified September 2026 by Direct Air Systems, Bolton ON — Lennox Premier Dealer. There is currently no Ontario government rebate for gas furnace replacement.

Furnace Replacement Cost in the GTA — Quick Answer

Installed price ranges by efficiency tier (GTA, CAD, September 2026). All prices include equipment, labour, TSSA permit, standard venting, and old furnace removal.

  • Entry-level 96% AFUE (Lennox Merit ML196E, two-stage): [TEAM TO CONFIRM] CAD — Best for budget replacements, smaller homes under 1,500 sq ft, rental properties
  • Mid-range 96-97% AFUE (Lennox Elite EL296E / EL297V, variable-speed): [TEAM TO CONFIRM] CAD — Best for most GTA detached and semi-detached homes 1,500–2,500 sq ft
  • Premium 99% AFUE (Lennox Signature SLP99V, modulating): [TEAM TO CONFIRM] CAD — Best for larger homes over 2,000 sq ft prioritising maximum efficiency and quiet operation
  • Furnace + AC bundle (Lennox matched system): [TEAM TO CONFIRM] CAD — Most cost-effective when replacing both at the same time

    • What Drives Furnace Installation Cost Up or Down?

  • Home size and BTU output — the single biggest cost driver. A 1,200 sq ft bungalow needs 60,000 BTU; a 2,800 sq ft two-storey may need 100,000 BTU. Larger output means a larger, costlier unit. We perform a full Manual J heat-loss calculation on every job.
  • Efficiency and staging — upgrading from a single-stage 96% AFUE furnace to a variable-speed 97% or modulating 99% model adds $1,000–$2,500+ to the equipment cost but reduces operating cost over the furnace’s 15–20 year lifespan.
  • Venting — most high-efficiency furnaces use PVC sidewall venting. New or longer PVC runs, chimney liner capping, or unusual mechanical room configurations add cost.
  • Enbridge gas line work — if the existing gas line is undersized or a new drop is required, a licensed gas fitter must upsize or extend the line. This is the most common surprise cost in older GTA homes.
  • Ontario TSSA permit — required on every gas furnace installation in Ontario. The permit fee and inspection are factored into your Direct Air Systems installed quote. Never use a contractor who skips the permit.
  • GTA labour rates — labour in Toronto and surrounding areas runs higher than smaller Ontario markets. A standard furnace swap is 6–10 labour hours with two technicians.
  • Old furnace removal — included in all Direct Air Systems installations. Unusual access, asbestos-wrapped ductwork, or basement tight-fit situations can add time.

    • What Size Furnace Do You Need?

    Furnace sizing is determined by a Manual J heat-loss calculation — not by the size of your old furnace or a rule-of-thumb formula. An oversized furnace short-cycles, wastes gas, and creates humidity problems. Here are approximate BTU ranges for common GTA home sizes:

  • Under 1,200 sq ft (condo, small bungalow): 40,000–60,000 BTU
  • 1,200–1,800 sq ft (semi-detached, bungalow): 60,000–80,000 BTU
  • 1,800–2,500 sq ft (detached, two-storey): 80,000–100,000 BTU
  • 2,500–3,500 sq ft (large detached): 100,000–120,000 BTU

    • Toronto & GTA-Specific Furnace Considerations

    Toronto’s housing stock creates installation challenges that affect both cost and timeline:

  • Toronto building permits — the City of Toronto requires a mechanical permit for furnace installations in addition to the TSSA permit. Our licensed contractors handle all permit applications and post-installation inspections.
  • Century homes and older semis — often have undersized ductwork, unconventional furnace placements, and knob-and-tube electrical. These homes may require additional gas line or venting work that adds to the installed cost.
  • Enbridge gas service — most Toronto and GTA homes are on Enbridge natural gas. If your gas line requires a pressure upgrade or extension, Enbridge work must be coordinated with the installation.

    • We serve all Toronto neighbourhoods — Etobicoke, North York, Scarborough, East York, Midtown — as well as Markham, Vaughan, Brampton, Mississauga, Bolton, and Richmond Hill.

    Repair vs. Replace — Is a New Furnace Worth It?

    Not every heating issue means a new furnace. See our furnace repair vs. replacement guide for a detailed breakdown. In general:

  • Repair makes sense: furnace under 12 years old, single fault, repair cost under 30% of replacement value
  • Replace makes sense: furnace over 15 years old, cracked heat exchanger, multiple recent repairs, AFUE under 80%, or rising gas bills despite maintenance

    • Ontario Furnace Rebates — The Honest Picture

    There is currently no Ontario or federal government rebate for gas furnace replacement. The Canada Greener Homes Grant closed in 2024. Enbridge HER+ closed December 31, 2025. Any contractor or website claiming a furnace rebate exists is providing outdated information. For current rebate programs see homerenovationsavings.ca.

    The dual-fuel alternative: if you pair a new Lennox gas furnace with a qualifying Lennox cold-climate heat pump, that combination may qualify for the Ontario Home Renovation Savings (HRS) program. A heat pump alone qualifies for HRS rebates; the furnace component does not.

    Lennox Furnace Lineup — Which Model?

    Direct Air Systems focuses on Lennox furnaces as primary offerings, carrying over 44 models across three series. For a full installed price comparison see our Lennox furnace prices Canada guide.

  • Lennox Merit ML196E — 96% AFUE, two-stage. Entry-level high efficiency. Recommended for budget replacements and smaller homes.
  • Lennox Elite EL296E / EL297V — 96-97% AFUE, two-stage / variable-speed. Most recommended for most GTA homes. EL297V variable-speed blower is significantly quieter.
  • Lennox Signature SLP99V — up to 99% AFUE, modulating variable-speed. Best for larger homes. iComfort S30 compatible. Lifetime heat exchanger warranty.

    • Frequently Asked Questions

    How much does a new furnace cost installed in Ontario?

    A new furnace installed in Ontario typically costs between $5,500 and $11,000+ CAD depending on the efficiency tier, home size, and site conditions. These are fully installed prices in CAD covering equipment, labour, TSSA permit, standard venting, and removal of the old furnace. [TEAM TO CONFIRM PRICE RANGES]

    Is it worth replacing a 15-year-old furnace?

    Usually yes. A 15-year-old furnace is typically 80-90% AFUE at best. A new 96-99% AFUE furnace reduces gas consumption significantly, and you avoid the risk of a mid-winter breakdown on aging equipment. The breakeven on energy savings alone is typically 5-8 years for most GTA homes at current Enbridge gas rates.

    What size furnace do I need for my GTA home?

    Most GTA homes need between 60,000 and 100,000 BTU depending on square footage, ceiling height, insulation, and window area. The only accurate way to size a furnace is a Manual J heat-loss calculation performed on your specific home. We perform this on every free in-home assessment.

    Is there a furnace rebate in Ontario?

    No. There is currently no Ontario or federal government rebate for gas furnace replacement. The Canada Greener Homes Grant closed in 2024 and Enbridge HER+ closed December 31, 2025. If you pair a new furnace with a qualifying heat pump (dual-fuel hybrid), the heat pump portion may qualify for the Ontario Home Renovation Savings program.

    How long does furnace installation take in the GTA?

    Most standard furnace replacements in GTA homes are completed in 6-10 hours in a single day. Complex retrofits requiring new venting, gas line work, or ductwork modifications can extend to 1.5 days.

    Get an Exact Installed Quote for Your GTA Home. Furnace replacement cost depends on your home’s size, existing ductwork, venting, and which Lennox model is the right fit. Book a free in-home assessment — we perform a full Manual J calculation, confirm your options, and provide a written installed quote. Call our Bolton office at (905) 951-8080 or our Markham showroom at (416) 268-1115. Also see our full Lennox furnace installation service page.

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    Serving Bolton, Markham, Toronto, Vaughan, Brampton, Mississauga & the entire GTA.