# What Affects the Cost of a New Furnace in Hamilton?

> The cost of a new furnace depends mainly on the size your home needs, the furnace's efficiency and staging (single-stage, two-stage or modulating), the blower type, how much venting, gas line or ductwork work the installation needs, and add-ons like a humidifier or smart thermostat. Rebates and financing can lower the cost. An in-home assessment is the only way to get an accurate price.

Source: https://lancasterheatingandcooling.ca/furnace-replacement-cost/
Last updated: 2026-11-01

Replacing a furnace is one of the bigger purchases you'll make for your home. Prices vary a lot from home to home,
and a quote over the phone is rarely accurate. Here's what actually drives the cost, so you can compare quotes
with confidence.

## Typical furnace replacement costs in Ontario (2026)

Most Ontario homeowners pay about $3,500–$9,000 to replace a gas furnace, depending mainly on the furnace's staging
and how much the installation involves. Here's how public Canadian cost guides break it down:

| Furnace or add-on | Typical installed range in Ontario |
|---|---|
| Standard single-stage high-efficiency gas furnace | About $3,500–$5,500 |
| Two-stage high-efficiency gas furnace | About $4,500–$7,500 |
| Modulating furnace with variable-speed blower | About $6,000–$9,000 |
| Furnace and central air conditioner replaced together | About $8,000–$14,000 |
| Ductwork changes at the furnace (plenum, transitions) | About $300–$1,500 extra |
| Whole-home humidifier | About $500–$1,500 extra |

> These are typical installed price ranges in Ontario based on public sources (listed below), including equipment
> and standard installation, before tax and rebates. They're not a Lancaster quote; your price depends on your home
> and the system you choose.

The factors below explain where your home is likely to land in those ranges. To compare brands, see
[Trane vs. Carrier furnaces](https://lancasterheatingandcooling.ca/trane-vs-carrier-furnaces/) and [the best furnace brands in Canada](https://lancasterheatingandcooling.ca/best-furnace-brands/),
or browse the [furnaces we carry](https://lancasterheatingandcooling.ca/products/furnaces/).

## 1. The right size for your home

A furnace should be sized with a proper heat-loss calculation (in Canada, the CSA F280 standard), not by matching
the old furnace or the home's square footage. Insulation, windows, air leakage and layout all matter. An oversized
furnace costs more to buy, short-cycles and wastes energy; an undersized one can't keep up on the coldest days.

## 2. Efficiency (AFUE)

AFUE measures how much of the gas becomes heat in your home. New gas furnaces sold in Canada are high-efficiency
condensing models, and top models reach about 97–98% AFUE. Higher efficiency costs more up front but lowers your
gas bills for the life of the furnace.

## 3. Staging: single-stage, two-stage or modulating

- **Single-stage:** on at full output or off. The simplest and lowest cost.
- **Two-stage:** runs on a low setting most of the time and switches to high on cold days. Quieter, with more even
  temperatures.
- **Modulating:** adjusts output in small steps to match the heat your home needs. The most comfortable, quietest
  and efficient option.

## 4. Blower motor

Variable-speed (ECM) blowers use less electricity, run quietly, improve air filtration and help your air conditioner
remove humidity in summer.

## 5. Installation conditions

- **Venting:** converting from an old chimney-vented furnace to PVC venting, or rerouting vent pipes.
- **Gas line:** changes to the gas supply or a new shut-off valve.
- **Ductwork:** modifying the plenum or fixing undersized or leaky ducts. See [ductwork repair](https://lancasterheatingandcooling.ca/ductwork/).
- **Condensate drain:** adding a floor drain connection or condensate pump.
- **Access:** tight crawlspaces, finished basements and attic installations take longer.

## 6. Matching your air conditioner or heat pump

If your air conditioner is old or uses R-22 refrigerant, replacing both at the same time is often more cost-effective
and ensures the indoor coil and outdoor unit are properly matched. A [heat pump](https://lancasterheatingandcooling.ca/heat-pumps/) paired with a furnace
(a hybrid system) is also worth considering, and it qualifies for more rebates.

## 7. Add-ons

Smart thermostats, [whole-home humidifiers](https://lancasterheatingandcooling.ca/air-quality/humidifiers/), upgraded filtration,
[UV air purifiers](https://lancasterheatingandcooling.ca/air-quality/uv-air-purifiers/) and extended warranties all add to the cost, and to your comfort.

## 8. Rebates, financing and warranty

- **Rebates:** check our [rebates guide](https://lancasterheatingandcooling.ca/rebates/) for current federal and Ontario programs.
- **Financing:** spread the cost over monthly payments with [Financeit financing](https://lancasterheatingandcooling.ca/financing/).
- **Warranty:** manufacturer parts warranties usually require registration and annual maintenance. Our
  [service plans](https://lancasterheatingandcooling.ca/service-plans/) make that easy.

## How to compare furnace quotes

Ask every contractor:

1. Did you do a heat-loss calculation, or are you matching the old furnace's size?
2. What's the exact model number, AFUE and staging?
3. What's included: venting, gas line, ductwork changes, condensate, thermostat, removal and disposal, permit?
4. What warranty is included on parts and on labour?

## Get an accurate price

Lancaster Heating and Cooling has been installing furnaces in Hamilton since 1955. We'll assess your home, explain
your options from [Trane](https://lancasterheatingandcooling.ca/products/trane/), [Carrier](https://lancasterheatingandcooling.ca/products/carrier/), [Goodman](https://lancasterheatingandcooling.ca/products/goodman/) and the other brands we carry, and give you a clear,
itemized quote. [Request a free quote](https://lancasterheatingandcooling.ca/quote/) or call **<a href=tel:+19053883333>905-388-3333</a>**.

## Sources

Typical ranges are rounded from these public Canadian sources (checked November 2026):

- [HomeStars: furnace replacement cost](https://www.homestars.com/heating/price-guides/furnace-replacement-cost) and [HVAC installation cost](https://www.homestars.com/heating/price-guides/hvac-installation-cost)
- [The Home Depot Canada: cost to install a gas furnace](https://www.homedepot.ca/en/home/ideas-how-to/heating-and-cooling/cost-install-gas-furnace.html)
- [Reno Quotes: furnace replacement cost in Canada (2026)](https://renoquotes.com/en/blog/furnace-replacement-cost-in-canada-what-should-you-budget-in-2026)
- [FurnacePrices.ca: complete furnace buying guide](https://www.furnaceprices.ca/furnaces/complete-furnace-buying-guide/)
- [The Heating Guide: furnace replacement cost in Ontario](https://theheatingguide.ca/furnace-replacement-cost-ontario/)
- [Green Building Canada: heat pumps vs. gas furnaces vs. hybrid systems](https://greenbuildingcanada.ca/cost-heat-pump-furnace-hybrid-canada/)
- [Carrier Canada: whole-house humidifier costs](https://www.carrier.com/residential/en/ca/products/indoor-air-quality/humidifiers/whole-house-humidifier-cost/)

## Furnace cost questions

### How much does a new furnace cost in Hamilton?

Based on public Ontario cost guides, a new high-efficiency gas furnace typically costs about $3,500–$5,500 installed for a single-stage model, $4,500–$7,500 for two-stage and $6,000–$9,000 for modulating, before tax. These are typical market ranges, not a Lancaster quote. Your price depends on your home, so we give a free, itemized in-home quote. [Request a quote](https://lancasterheatingandcooling.ca/quote/).

### Is a modulating furnace worth the extra cost?

Modulating furnaces adjust their output in small steps, giving the most even temperatures, quieter operation and the lowest gas use. Whether the extra cost pays back depends on your home, how long you plan to stay and how much you value comfort. We'll walk you through the options.

### Are there rebates for a new furnace?

Most current Ontario incentives focus on heat pumps, smart thermostats and insulation rather than gas furnaces. See our [rebates guide](https://lancasterheatingandcooling.ca/rebates/) for what's available now.

### Can I finance a new furnace?

Yes. We offer [financing](https://lancasterheatingandcooling.ca/financing/) through Financeit, so you can spread the cost over monthly payments.

---
**Lancaster Heating and Cooling** — HVAC contractor serving Hamilton, Niagara and surrounding areas since 1955.
Phone (24/7 emergency): 905-388-3333 · Email: info@lancasterhvac.ca
Address: 1250 Stone Church Rd. E, Hamilton, ON L8W 2C8, Canada · Hours: Monday – Friday: 8:00AM – 4:30PM
Request a quote: https://lancasterheatingandcooling.ca/quote/