The Complete Furnace Buying Guide 2026: Tips for Homeowners
Are you a Canadian homeowner preparing for another harsh winter? Then, a Complete Furnace Buying Guide can be your support system if you are planning to buy, replace, or upgrade your furnace. A reliable heating furnace is more than just a comfort. It can help you withstand the harsh winds of the Prairie provinces or the extreme cold temperatures in Ontario and Quebec,
Buying a new heating furnace is not easy. First, there are different fuel types, AFUE ratings, installation costs, and potential manufacturers in the market. This is where many homeowners start asking, "What's the best heating furnace for my home?"
This Complete Furnace Buying Guide will help you through the entire process, so you can confident, empowered, and informed as decisions.
Top Reasons to Upgrade Your Furnace
Many Canadian homes have older furnaces that just provide 60-70% efficiency. This means almost half of the fuel you’re paying for is getting wasted. At the same time, modern furnaces have 95-99% AFUE (Annual Fuel Utilization Efficiency). Let’s see what that means:
- Lower heating bills (which can save you about 40-45%).
- Reduced greenhouse gases.
- Consistent heating all over your house.
- Quieter operation and less wear and tear.
As energy prices are rising all across Canada, replacing your existing furnace with a high-efficiency model can save you a lot of money on your bills. It could be your best investment in comfort while concurrently creating a more sustainable home.
An Overview of Furnace Efficiency Ratings
You may come across the word AFUE (Annual Fuel Utilization Efficiency) while shopping for a furnace. It is one of the most significant terms as it plays a major role in determining your utility bills.
When a furnace has an AFUE of 95%, that means that 95% of every dollar of fuel you purchase becomes heat; only 5 cents is wasted.
Older furnaces (65-80% AFUE) mean nearly a third of every dollar you spend just goes up the flue.
Condensing furnaces (97-99% AFUE) provide maximum performance and efficiency.
In Canada, the government specifies that all new installations meet at least a 95% efficiency rating. For homeowners, that is a good baseline and makes certain that a new system will save you money compared to an old system.
Finding the Right Size of Furnace
To begin with, a furnace smaller than your needs may fail to keep you warm on a Canadian winter day; a too-large furnace can waste energy and ultimately shorten its life.
A good thumb rule for sizing a furnace is 30 - 60 BTUs per sq. ft. of space.
But the exact furnace size depends on:
- The R-value of the insulation in your home.
- The quality and orientation of your windows.
- Climate you reside in.
- The height of your ceilings and your floor plan.
HVAC professionals install a process called Manual J Load Calculation. With this, the HVAC professional can find the right-size furnace for your home. It is an important because it helps determine the life of your furnace.
Furnace Fuel Types in Canada
Canada’s vast geography means fuel options vary depending on where you live:
1. Natural Gas Furnaces
- Most common in Canadian cities.
- Lowest operating costs where pipelines are available.
- Common brands and service availability.
2. Propane Furnaces
- Ideal for rural or off-grid sites.
- Efficiency same as natural gas but slightly more expensive to operate.
- Requires a storage tank at site.
3. Electric Furnaces
- Less common due to higher electricity costs in most provinces.
- Cheaper upfront but more expensive long-term.
- Simple installation and lower maintenance needs.
4. Oil Furnaces
- Primarily used in older rural homes, especially in Atlantic Canada.
- It is losing popularity due to gas prices and concern for carbon emissions.
5. Hybrid Systems
- This option flourished in 2025.
- The heat pump manages in warm weather, and the furnace is used in harsh winters.
Cost of Furnace in Canada
Furnace prices vary by brand, efficiency rating, installation complexity, and region.
Here are some typical cost estimates across Canada:
The cost of a standard gas furnace with high efficiency can range from $4,000 to $6,750. There are affordable options as well. They may cost around $3,000 to $4,000. But, if you want to for something premium, then you have to spend anywhere between $7,000 and $9,500.
Remote or rural installations tend to cost 20-60% more on labour charges. The travel time creates an extra expense. Costs can vary based on elements such as:
- Efficiency rating (95%, 99% etc.).
- Furnace size (BTU rating).
- Vent upgrade (PVC venting vs chimney liners).
- Modifications to existing ductwork.
- Labour rates in your region.
Popular Furnace Brands in Canada
The brand of your furnace is important, as it is associated with quality and trust. Let’s look at the most popular and trustworthy furnace brands available in Canada:
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Lennox - It is famous for high efficiency and premium features.
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Carrier – Reliable and widely available.
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Trane – Durable with strong warranties.
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Goodman/Amana – Budget-friendly and effective.
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Napoleon – Made in Canada and built for Canadian winters.
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Rheem – It provides a perfect balance of quality and cost.
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York – Strong presence across Canada.
Furnace Buying Pitfalls to Watch Out For
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Price-Only Selection: A less expensive furnace means greater costs for repair and it may take a longer timeframe for operation.
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Quality: Even the best furnace cannot last if it is improperly installed.
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Selecting an improper size: Oversized or undersized systems decrease comfort and efficiency.
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Ignoring rebates: Many homwowners misses out on hundreds or thousands of dollars that are available to them.
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Skipping annual maintenance: A furnace is as important as a car; you'd get a better performance with regular tune-ups.
Furnace Installation: Time Expectations
If all goes according to plan, the installation of your new furnace will take 4 to 10 hours, depending on the complexity of the work. This is what generally occurs:
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Old furnace removal.
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Ductwork adjustments if needed.
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Installation of new furnace + venting system.
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Connection to thermostat and power supply.
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Safety checks (carbon monoxide, leaks, airflow).
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System test and homeowner walkthrough.
Tips for Maintaining a Furnace
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Change filters every 1 - 3 months.
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Get professional tune-ups annually.
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Keep the furnace vents free of dust and debris.
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Use a smart thermostat to help with energy use.
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Watch for trouble - unexpected noises, heating inconsistencies, or energy bills higher than normal.
Rebates, Incentives, and Energy Savings in Canada
As of 2025, almost all Canadian homeowners can save money in one of three ways -
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Federal Greener Homes Grant (up to $5,000).
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Provincial rebates (varies by province), but Ontario, BC, and Quebec have fairly good programs.
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Utility company incentives.
Before buying, ask your contractor about which programs you qualify for. Rebates can greatly lower costs upfront.
The Step-by-Step Process of Furnace Installation.
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Take your measurements and assess the quality of your house (well built vs well insulated vs. neither).
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Determine the fuel type (natural gas, propane, or electric).
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Find an ENERGY STAR product (high-efficient furnace) with at least 95% AFUE.
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Get 2-3 quotes from licensed professionals.
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Inquire about the installation procedure and warranty.
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Check on any rebates before signing.
Making the Right Choice for Your Furnace
Let’s be honest—nobody gets excited to buy a furnace. However, when you are sitting in your living room in January, and it feels like the snow is falling forever, you will be glad you took the time and money to buy a good, solid, and efficient system.
Energy costs are high in Canada and no one wants to find themselves in the middle of a snowstorm and wake up to realize their furnace is not working. Upgrading to a high efficiency furnace is costly but you will recoop your cost in peace of mind, comfort and energy savings.
In the end, we are not just talking about warming capability; we are referring to the ability to create a cozy, welcoming home that you will love coming back to when the outside world feels harsh- and that is the best feeling.
Last Updated:
Dec 08
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