Furnace Installation
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Furnace installation means removing an old or failing furnace and putting in a new one, or adding a furnace to a home that is changing how it heats. In much of Canada the furnace is the appliance a family depends on most from late fall to spring, so a new one is worth planning rather than choosing in a rush on a freezing night.
A proper installation is more than swapping one box for another. The installer works out how much heat the house actually needs, chooses equipment and efficiency that suit the home and the energy available, adapts the ductwork, gas line, venting, condensate drain and wiring, then starts and adjusts the furnace so it burns cleanly and delivers heat evenly.
This page covers the kinds of furnaces available, why sizing is based on a heat loss calculation, what efficiency ratings mean, how installation day goes, the permits and gas safety rules involved, and the alternatives worth weighing, such as a heat pump paired with a furnace. Installing a gas, propane or oil furnace is never a do-it-yourself job; it requires a technician licensed for that fuel.
Types of furnaces for Canadian homes
- A natural gas furnace is the usual choice where the street has gas service, and new models are high-efficiency condensing units.
- A propane furnace works like a gas furnace for rural homes without a gas line, using a tank on the property.
- An oil furnace is still found in older and rural homes, but many owners replacing one now look at a heat pump instead.
- An electric furnace has no flame or exhaust and suits homes without gas, though it relies entirely on electricity for heat.
- A single-stage furnace runs at full output every time it starts.
- A two-stage or modulating furnace can run at lower output most of the time, which gives steadier temperatures and quieter operation.
Sizing a new furnace with a heat loss calculation
Natural Resources Canada advises asking your contractor to calculate your home's heat requirements so the furnace is sized properly. A heat loss calculation takes into account the floor area, insulation levels, windows, air leakage and your local winter design temperature. It matters because many homes have been insulated, re-windowed or sealed since the original furnace went in, so matching the old unit's size often means buying too much furnace.
An oversized furnace heats the house in short, noisy bursts, leaves some rooms warm and others cool, and wears out its parts faster from constant starting. An undersized one runs without stopping on the coldest days and may not keep up. The calculation also shows whether the existing ducts can carry the airflow the new furnace needs.
Furnace efficiency: AFUE, condensing furnaces and variable-speed blowers
A furnace's efficiency is expressed as its AFUE, the share of the fuel's energy that ends up as heat in your home over a season. High-efficiency condensing furnaces pull extra heat from the exhaust, which cools it enough to form water; that is why they vent through plastic pipes, often out a side wall, and need a drain for the condensate. ENERGY STAR certified furnaces use less energy than standard models.
The blower matters too. Natural Resources Canada points to high-efficiency blower motors that change speed to meet the home's air distribution needs rather than constantly cycling on and off. They use less electricity, especially if you run the fan continuously for an air exchanger or air cleaner, and they make the airflow quieter.
How a furnace installation works, step by step
- The installer visits the home, does the heat loss calculation and inspects the ducts, venting, gas line, electrical supply and the path out for the old unit.
- On installation day, the gas and power are shut off and the old furnace is disconnected and removed.
- The new furnace is set in place and connected to the supply and return ducts, often with a new transition piece.
- The gas line, venting, air intake, condensate drain and wiring are adapted to the new equipment.
- If the old furnace shared a chimney with a gas water heater, the installer checks that the water heater will still vent safely.
- The furnace is started, and the gas pressure, combustion, temperature rise and airflow are tested and adjusted.
- The installer explains the thermostat, the filter and the service switch, and leaves the manuals and warranty papers with you.
Permits and gas safety for a furnace installation
Gas, propane and oil appliances are regulated by each province, and connecting them is reserved for licensed gas or oil technicians. Depending on where you live, the job may also need a permit from the municipality or the provincial safety authority, and sometimes an inspection before the work is closed up. Ask the installer who is responsible for the permit and keep a copy with your home records.
Gas safety continues after the installer leaves. Make sure there is a working carbon monoxide alarm, ideally in the hallway outside the bedrooms as Health Canada recommends, and keep the area around the furnace free of paint, solvents and stored boxes. If the installation changed where the furnace vents outside, keep the new vent clear of snow all winter.
Alternatives to a new furnace: heat pumps, dual-fuel systems and boilers
- A cold-climate heat pump can take over most of the heating and add central cooling, using the same ducts.
- A dual-fuel system keeps a gas or propane furnace as the backup for a heat pump, and the furnace takes over only when it is too cold for the heat pump to keep up or to run economically.
- Adding a heat pump coil when you replace the furnace can be simpler than doing the two jobs years apart.
- A boiler with radiators or in-floor heating suits homes without ducts, or owners who prefer quiet, even radiant heat.
- In homes with little heating demand, ductless heat pumps with electric baseboards as backup can replace a furnace altogether.
The best time of year to replace a furnace
If your furnace is aging or has needed several repairs, plan the replacement for spring, summer or early fall. Installers are easier to book, you have time to compare quotes and systems, and a day without heat is no hardship. Waiting until the furnace fails in January usually means taking whatever equipment is available and living with space heaters until it is installed.
Furnace Installation: frequently asked questions
What size furnace do I need?
Only a heat loss calculation for your house can answer that. It depends on the floor area, insulation, windows, air tightness and how cold your region gets. A furnace chosen by matching the old one, or by square footage alone, is often too big for a home that has been improved over the years.
How long does a furnace installation take?
A straightforward replacement is often done within a day. It takes longer when the ducts need changes, when the venting has to be moved from a chimney to a side wall, when a gas line or electrical circuit must be added, or when a heat pump or air conditioner is installed at the same time.
Do I need a permit to replace my furnace?
It depends on your province and municipality. Gas and oil work is regulated everywhere in Canada, and some places also require a permit or inspection. A licensed installer knows the local rules and usually handles the paperwork, but confirm it with them before the work begins.
Can I install a furnace myself?
No. Connecting gas, propane or oil and setting up the venting and combustion are regulated work that must be done by a licensed technician. A poor connection or venting mistake can cause a fire or carbon monoxide poisoning, and do-it-yourself work can also void the manufacturer's warranty and create problems with your insurer.
Should I replace my air conditioner at the same time?
If the air conditioner is also old, replacing both together makes sure the indoor coil and the new furnace's blower are matched, and it avoids a second disruption later. It is also the moment to consider a heat pump instead of a new air conditioner, since it cools the same way and adds heating.
What happens to my chimney with a high-efficiency furnace?
A condensing furnace vents through its own plastic pipes, so it no longer uses the chimney. If a gas water heater still vents into that chimney, it may now be too large for the water heater alone, and the installer should check it and recommend a liner or other change if needed.
Sources
Written by the LokalMatch editorial team. Last reviewed September 10, 2026.
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Ontario
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What affects the cost of furnace installation
Prices depend on the details of your project. We only publish price ranges when they’re backed by real LokalMatch quote data or reliable sources. Until then, here’s what usually changes the price:
- Type of system and fuel source
- Size and efficiency of the equipment
- Condition of the existing ductwork and venting
- Electrical or gas line changes
- Access to the furnace room, attic or outdoor unit location
- Removal and disposal of the old equipment
- Emergency or after-hours service
How to compare HVAC contractors before you hire
- Hire a technician who is licensed for heating, cooling and gas work in your province.
- For a new system, ask for a load calculation for your home rather than a size based on the old unit.
- Get written quotes that list the equipment, ductwork changes, removal of the old unit and any electrical work.
- Ask how they handle service calls and repairs after installation, including in the middle of winter.
- Compare the full scope of each quote, not only the equipment on it.
Questions to ask HVAC contractors before you hire
- Are you licensed for this type of heating, cooling or gas work in my province?
- How did you decide what size of system my home needs?
- Does this installation need a permit, and will you take care of it?
- What does the manufacturer's warranty cover, and what does your labour warranty cover?
- Will you need to change the ductwork, venting or electrical to make this work?
- Do you offer maintenance plans, and what do they include?
- How quickly can you respond if the system stops working?
When to call a pro for furnace installation
- If you smell gas, leave the home and call your gas utility's emergency line from outside.
- If a carbon monoxide alarm goes off, get everyone outside and call emergency services.
- No heat in cold weather, or a furnace that keeps shutting off
- Unusual noises, burning smells or a big jump in energy use
Furnace installation permits and local rules
Some furnace installation work needs a permit or has to meet local bylaws. Rules vary by municipality, so ask your pro whether a permit is needed and who will apply for it — and check with your city or town if you’re unsure.
Permits and licensingSeasonal maintenance
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