Replacing your furnace is an essential investment, especially in Ottawa, where winters demand reliable and efficient heating systems. Whether your current furnace is outdated or no longer functioning, understanding the costs associated with a replacement is key to budgeting effectively.
In this guide, we’ll dive into the furnace replacement costs in Ottawa, explaining the factors that influence pricing and how to make the right choice for your home.
The Average Furnace Replacement Cost in Ottawa Explained
The cost to replace a furnace in Ottawa typically ranges from $3,000 to $7,000, including installation. The price varies depending on factors like the furnace type, size, and energy efficiency.
Furnace Unit Costs
Furnaces in Ottawa come in various types, each with a different price range. Gas furnaces, the most common in the region, typically cost between $3,500 and $6,500. Electric furnaces are a cheaper upfront option, ranging from $3,000 to $5,000, though they may have higher operational costs. Oil furnaces, less common today, often range between $4,000 and $7,000, making them a more expensive choice for older homes.
Installation Expenses
Installation costs vary significantly based on your home’s needs. Homes with well-maintained ductwork generally incur lower installation fees, while those requiring duct repairs or replacements may add $1,000 to $3,000 to the project. Additionally, older homes with outdated heating systems may require significant updates to accommodate modern furnaces.
Energy Efficiency Impacts
High-efficiency furnaces with a 95% or greater Annual Fuel Utilization Efficiency (AFUE) rating are more expensive, often ranging from $4,500 to $7,500. However, they offer significant long-term savings on energy bills and are better suited for Ottawa’s harsh winters.

Why Invest in an Energy-Efficient Furnace For Your Home?
In Ottawa, where winter temperatures often drop below freezing, investing in an energy-efficient furnace is both practical and cost-effective.
Benefits of High-Efficiency Furnaces:
- Lower Energy Bills: High-efficiency models consume less fuel, reducing your monthly heating costs.
- Government Rebates: Ottawa residents may qualify for energy-efficiency rebates through programs like the Canada Greener Homes Initiative, saving hundreds of dollars.
- Eco-Friendly Heating: Efficient furnaces reduce greenhouse gas emissions, helping Ottawa homes contribute to a sustainable future.
Although energy-efficient furnaces cost more upfront, the long-term savings and environmental benefits make them a smart investment for Ottawa homeowners.
How to Choose the Right Furnace for Your Ottawa Home
Selecting the right furnace for your home can feel overwhelming, but focusing on key factors can simplify the process.
Key Considerations:
- Fuel Type: Determine whether your home uses natural gas, electricity, or oil for heating.
- AFUE Rating: Look for a furnace with a high AFUE rating to ensure maximum energy efficiency.
- Warranty and Maintenance: Choose a furnace with a comprehensive warranty and consider annual maintenance plans to extend its lifespan.
Working with a reputable Ottawa HVAC contractor ensures you receive expert guidance and a furnace tailored to your home’s specific needs.

The Lifespan of a Furnace: When Should You Replace It?
One of the most common questions Ottawa homeowners have is, “How do I know when it’s time to replace my furnace?” On average, a furnace lasts between 15 and 20 years, depending on its type, maintenance history, and usage. However, certain signs may indicate it’s time for a replacement even if your furnace hasn’t reached its expected lifespan.
Signs You Need a New Furnace:
- Frequent Repairs: If you’re constantly calling for repairs, the costs can quickly add up, making a replacement a more cost-effective option.
- Inconsistent Heating: Uneven temperatures across your home may signal that your furnace is struggling to distribute heat effectively.
- High Energy Bills: Older or inefficient furnaces often use more energy to heat your home, driving up monthly costs.
- Unusual Noises or Odours: Persistent banging, rattling, or strange smells could indicate serious internal issues.
Replacing an old or failing furnace not only improves comfort and energy efficiency but also helps avoid costly breakdowns during Ottawa’s harsh winter months. A professional assessment from a trusted HVAC contractor can confirm whether it’s time to upgrade to a new, energy-efficient system.
Conclusion
Replacing a furnace in Ottawa involves several considerations, from the type of furnace and installation complexity to energy efficiency and additional costs. While the upfront expense can range from $3,000 to $7,000, investing in a reliable, high-efficiency furnace ensures long-term savings and keeps your home warm during Ottawa’s freezing winters. With proper planning and the right HVAC partner, you can make an informed decision that fits your budget and provides lasting comfort.
Stay Warm in Ottawa with Colair
Ottawa’s Trusted Furnace Replacement Experts
At Colair, we specialize in furnace replacement services tailored to Ottawa’s unique climate. Our team provides energy-efficient solutions, expert installation, and personalized guidance to ensure your home stays warm and efficient all winter long.
Contact us today for a free consultation or quote—your comfort is just a call away!