Cost of a New Furnace in Montréal: Replacement Price Ranges
In Greater Montréal, replacing a central gas furnace typically costs about $5,000 and $10,000 installed, and an electric forced-air furnace usually runs lower, roughly $3,500 to $7,000. Those are typical ranges, not quotes. Where your job falls depends mostly on the venting, the electrical or gas supply, the ductwork and how easy it is to get the old unit out of the basement.
October is when most people start asking this question, usually after the first cold night when the furnace makes a new noise or simply does not start. Below is how the price breaks down, what is specific to Montréal homes, and how to read a quote before you sign it.
Gas or electric: Montréal is not a typical market
Most of North America heats with gas furnaces. Montréal is different. A large share of homes heat with electricity, either baseboards or an electric forced-air furnace (sometimes called an electric "fournaise" or "fournaise électrique" on quotes). Gas furnaces are common in some neighbourhoods and in many duplexes and triplexes, and oil systems still turn up in older houses.
That matters for price because the two furnace types are very different installs:
- Electric furnace. No combustion, no venting, no gas line. The work is mostly the unit, the electrical connection and the duct connections. Cost is driven by the size of the unit (in kilowatts), whether the existing circuit and breaker are adequate, and whether you add a central AC coil or heat pump at the same time.
- Gas furnace. New residential gas furnaces sold in Canada are high-efficiency condensing models. They need PVC venting out through a wall or roof, a condensate drain, and a proper gas connection. If the old furnace vented into a chimney, the venting change alone can be a meaningful part of the bill.
- Oil furnace. Québec regulations no longer allow an oil heating appliance to be replaced with another oil appliance in most homes, so an oil replacement is really a conversion to electric, gas or a heat pump. Removing the oil tank adds cost, and conversions are where incentive programs most often apply.
Typical installed price ranges in Greater Montréal
These are rough, labelled ranges for a single-family home or one unit of a plex. They include equipment, removal of the old unit and standard installation. They do not include major duct rebuilds, panel upgrades or chimney work unless noted.
| Job | Typical range (CAD, installed) |
|---|---|
| Electric furnace, like-for-like swap | $3,500 to $7,000 |
| High-efficiency gas furnace, existing PVC venting | $5,000 to $8,000 |
| High-efficiency gas furnace, new venting from a chimney setup | $6,500 to $10,000+ |
| Furnace plus new central AC, replaced together | $9,000 to $16,000 |
| Furnace plus ducted heat pump (dual-energy setup) | $12,000 to $22,000 |
| Oil system conversion, including tank removal | $9,000 to $20,000+ |
Prices in the city itself and on the island tend to sit higher than in the suburbs because of access and parking, especially in plexes where the furnace is in a tight basement reached by an exterior staircase.
What moves the price up or down
Sizing
A replacement should be sized to the house, not to the label on the old furnace. Many Montréal homes have been insulated, re-windowed or renovated since the original system went in, and the old unit is oversized. An oversized furnace short-cycles, which wastes energy and wears parts out faster. A proper heat loss look at the house may let you install a smaller unit, which can bring the price down.
Single-stage, two-stage or modulating
Single-stage gas furnaces run at full output every time they turn on. Two-stage and modulating models run lower most of the time, which is quieter and more even. They cost more up front, and the comfort gain only shows up if the ductwork can handle variable airflow.
Venting and the chimney
If the old gas furnace shared a chimney with a water heater, removing the furnace can leave the water heater alone in a chimney that is now too large for it. That can mean a chimney liner or switching the water heater venting too. Ask whether your quote accounts for this, because it is a common surprise after the fact.
Electrical capacity
Electric furnaces draw a lot of current. If your panel is already close to full, or the existing breaker and wiring are undersized for the new unit, an electrical upgrade gets added. The same check applies before adding a heat pump.
Ductwork
New equipment on tired ducts often underperforms. Undersized returns, crushed flex duct or leaky joints can make a new furnace noisy and leave rooms cold. Small fixes like adding a return are inexpensive. Rebuilding trunk lines is not, and it should be quoted as its own line.
Access and timing
Narrow basement stairs, finished ceilings that have to be opened, or a unit in a crawlspace all add labour. Emergency replacements during a January cold snap can cost more than a planned replacement in the fall, simply because equipment choice is limited to what is in stock.
Permits and who can do the work
Gas work in Québec has to be done by people who hold the right qualifications, and the contractor should hold the appropriate licence from the Régie du bâtiment du Québec (RBQ). You can look up any contractor's licence on the RBQ website before you sign. Electrical work, including new circuits for an electric furnace or heat pump, needs a licensed electrical contractor. Montréal boroughs and surrounding municipalities can have their own permit requirements, especially when venting changes affect the exterior of the building, so ask your contractor who is pulling any permit the job needs.
Rebates and the heat pump question
Hydro-Québec runs incentive programs for heat pumps and for converting away from oil, and Hydro-Québec and Énergir have offered dual-energy options for homes that keep a gas furnace as backup to a heat pump. Federal programs come and go. Program rules and amounts change often, so treat any number you hear as a starting point and confirm eligibility directly with the program before you commit.
If you are already replacing the furnace and your central AC is more than 10 or 12 years old, it is worth pricing a heat pump in the same quote. We wrote a separate breakdown of heat pump versus furnace replacement costs that walks through how to compare the two fairly.
How to read a furnace quote
A good quote is more than a model number and a total. Look for:
- The furnace model, input and output capacity, and stage type (single, two-stage or modulating)
- How the size was chosen, ideally based on the house rather than the old unit
- Venting work spelled out, including what happens to the water heater venting
- Electrical or gas line work listed separately
- Duct changes, if any, listed separately
- Removal and disposal of the old furnace (and oil tank, if relevant)
- Permits, if the job requires them
- Startup and commissioning: combustion check on gas units, airflow and temperature rise on all units
- Manufacturer warranty terms and what registration is required to keep them
If two quotes are far apart, it is usually because one of them includes venting, duct or electrical work that the other leaves out. Line them up item by item before comparing totals.
Frequently asked questions
How long does a furnace last in Montréal?
Gas furnaces commonly last around 15 to 20 years, and electric furnaces often last longer because there is no combustion and no heat exchanger to crack. Maintenance, filter changes and correct sizing all affect lifespan. Age alone is not a reason to replace, but an older unit that needs an expensive repair usually is.
Can a furnace be replaced in one day?
A like-for-like replacement in an accessible basement is often a one-day job. New venting, electrical upgrades, a switch from oil or adding a heat pump can stretch it to two or three days. Booking in the fall rather than mid-winter gives you more choice of equipment and dates.
Is it worth replacing a working furnace before it fails?
It can be, if the unit is near the end of its expected life, the heat exchanger shows signs of wear, or you want to add a heat pump while incentives are available. Planned replacement lets you compare options calmly instead of taking whatever is available during a cold snap. If the furnace is younger and running well, regular maintenance is usually the better choice.
How much does it cost to replace a furnace and AC together?
In Greater Montréal, replacing a furnace and a central AC in the same job typically runs about $9,000 to $16,000 installed, as a labelled range rather than a quote. Swapping the AC for a ducted heat pump paired with the furnace usually sits higher, roughly $12,000 to $22,000, before any incentives. Venting, electrical upgrades and duct changes are what push a job toward the top of either range.
Should I replace my central AC at the same time?
If the AC is the same age as the furnace or older, replacing both together usually costs less than two separate jobs and makes sure the indoor coil and furnace blower are properly matched. It is also the natural moment to consider a heat pump instead of a new AC, since a heat pump handles cooling and also takes over much of the heating.
Get a written furnace quote
If your furnace is aging or already giving you trouble, send us the details through the quote form: the type of home, the current system, its age and what is going wrong. We review every request and follow up in writing with options side by side. You can also read more about our furnace installation and replacement work and our coverage in Montréal and Laval.