How Much Does a New Furnace Cost?
Illustration of a Furnace
When it comes time to replace or install a new furnace, one of the first questions homeowners and condo boards ask is simple: “How much does a new furnace cost?” The answer depends on a few key factors. including the size of the space, the efficiency of the furnace, and whether you’re installing in a single-family home or a condo building.
What a Furnace Does
A furnace is the heart of a home’s heating system. It draws in air, heats it through a combustion chamber or electric element, and distributes that warm air throughout the living space using ductwork. Properly maintained, a furnace not only provides comfort but also helps ensure consistent indoor air quality during the coldest months.
Signs It’s Time to Replace Your Furnace include frequent breakdowns, rising energy bills, uneven heating, or strange noises are all warning signs your furnace may be reaching the end of its life. A yellow or flickering burner flame can also signal combustion problems that may compromise safety.
Average Furnace Costs in 2025
Residential home: A standard high-efficiency furnace installation in Ontario typically ranges from $3,500 to $6,500, depending on brand and size.
Condo building: Furnaces (or centralized heating units) for condos often involve shared systems, which can cost significantly more — anywhere from $10,000 to $50,000+ depending on the complexity and number of units serviced.
Napoleon 9700 Series Furnace
Factors That Impact Furnace Pricing
Size & Capacity – Larger spaces need furnaces with higher BTU ratings.
Efficiency (AFUE Rating) – Higher efficiency means lower bills, but a higher upfront cost.
Installation Complexity – Condos often require special permits, rooftop installs, or shared ventilation systems.
Brand & Warranty – Top brands with strong warranties (like Napoleon, Trane, Carrier) cost more but provide long-term reliability.
Rebates & Incentives – In Ontario, energy-efficiency rebates can reduce costs by $500–$5,000 depending on the program.
Gas vs. Electric Furnaces
Homeowners often face the choice between gas and electric furnaces. Gas furnaces are generally more cost-effective to operate in colder climates due to lower fuel costs, while electric furnaces are easier to install and maintain but may lead to higher energy bills. The decision depends on utility rates, availability of natural gas, and efficiency goals.
Additional Costs to Consider
Duct cleaning (recommended before new furnace install)
Smart thermostat upgrade ($200–$500)
Air filtration systems or humidifiers (add comfort, especially in condos)
Extended warranties for long-term peace of mind
Considering a new furnace for your condo or home? Tracey Refrigeration offers expert advice, professional installation, and guidance on rebates to save you money. Contact us today for a free consultation.
