Furnace replacement cost in Ottawa: five published price lists and what moves your quote

Published Ottawa ranges, side by side

Five sources price a new furnace for Ottawa, each bundling different work:

• HomeStars’ Ottawa page: $4,000–$6,750 for installation; labour generally runs $500–$1,500.
• One Ottawa firm (February 2026): $3,500–$7,500 and up, by furnace type.
• A second Ottawa firm (fall 2026, before HST): entry $4,000–$5,500, mid-range $5,000–$7,000, premium $6,500–$9,000 and up.
• A third Ottawa firm (September 2026, before HST): $3,500–$8,000; most pay about $4,500–$6,000 with permits and removal.
• One national retailer’s Ottawa page: Ontario average $7,500, range $4,900–$8,000, before tax.

Check whether a figure covers removal, permits and tax before you set it beside a quote. Repairs on the old furnace are priced on the furnace repair cost page.

The furnace itself: stages, blower and size

Federal rules require 95% AFUE from most gas furnaces made since 3 July 2019. The price tiers come from how the furnace runs:

• Single-stage: full output or off. The first Ottawa firm lists the unit alone at $2,000–$3,000.
• Two-stage: a low and a high setting, quieter and steadier. Unit $3,000–$4,200 on the same list.
• Modulating: output adjusts in small steps. Unit $4,000–$5,500.

Brand moves the price too. The second firm advises comparing the exact model and its written warranty, including registration requirements and labour coverage. More on condensing models on the high-efficiency furnace page.

Size is the other factor: the first firm says Ottawa homes typically need 60,000–120,000 BTU, by floor area and insulation. How sizing is done is on the furnace replacement page.

Gas, electric, oil or propane

The first Ottawa firm lists an electric furnace at $2,500–$4,000 installed and an oil furnace at $4,000–$6,500. A Canada-wide HomeStars guide gives wider bands: electric $2,000–$7,000, natural gas $3,800–$10,000, oil $6,750–$10,000 and propane $3,700–$14,200.

An electric furnace needs no vent, the national retailer’s page notes, and is usually cheaper to put in while often dearer to run than gas. The Canada-wide guide adds $500–$2,000 for circuit and wiring upgrades on an electric install.

Extra lines that move the total

The first Ottawa firm publishes the add-ons it sees most often:

• Duct changes or sealing: $300–$2,000
• Vent change from chimney to sidewall: $200–$500
• Gas line upgrade or extension: $200–$600
• Electrical work for a variable-speed blower circuit: $150–$400
• Condensate drain: $100–$300
• Smart thermostat: $150–$400
• Taking away the old furnace: $0–$200

The third firm puts duct repairs or replacement at $1,000–$3,000. If a gas water heater shares the old chimney, ask whether its venting is in the price.

Season and an emergency swap

The first firm says late summer and early fall are the quieter months for installers, and that an emergency winter replacement can cost 15–25% more. If the central air is as old as the furnace, ask for a combined price; the second firm lists a furnace with a cold-climate heat pump at $9,000–$14,000 and up.

Rebates, HST and paying over time

Home Renovation Savings lists heat pumps, insulation, windows and doors, smart thermostats and solar; a gas furnace on its own is absent from that list. For an Enbridge Gas customer heating with gas, a cold-climate heat pump can bring $500 per ton up to $2,000, with pre-approval before any work. Ontario HST of 13% goes on every range marked “before tax”.

For monthly plans, the second firm suggests weighing the whole commitment: promotion length, fees and the rate after it ends. Since 6 June 2024, a business can no longer register a notice of security interest on your title for a furnace. The rent or buy page goes further.

Putting two quotes side by side

HomeStars advises an itemized quote. Line up the same items in each: model number, AFUE, heat stages, BTU output, each add-on above, removal, permits, warranty terms and the total with HST.

Ontario sets the paperwork. Work over $50 needs a written agreement. When a contract includes an estimate, the business can charge at most 10% above it unless you sign a change for extra work, and the province recommends a deposit of 10% or less. Sign at home and you have 10 days to cancel. TSSA says furnaces must be maintained by TSSA-registered contractors, so ask for the company’s registration number.

Who handles your request

Ottawa Heating Desk passes your request to one independent heating company in Ottawa. That company calls you back, looks at the house, prices the new furnace and installs it.