London Furnace/HVAC Replacement Cost Guide - August 2026 Prices

If you were looking to swap out your heating system in Oshawa right now, you might expect to pay an average of $9,939 CAD. However, London is a different beast entirely. Here in the Forest City, the average furnace/hvac replacement cost is $11,901 CAD. That is a significant jump, and it reflects a market that has seen prices climb by 12.5% over the last year. If you are a first-time homeowner in neighborhoods like Wortley Village or Woodfield, dealing with aging mechanical systems in heritage homes, those numbers might feel a bit daunting. You can generally expect a project range between $6,500 and $18,500 CAD, depending on how complex your ductwork is and how much cooling power you need for those humid Southwestern Ontario summers.

How Much Does Furnace/HVAC Replacement Cost in London?

Figuring out where you land in that $6,500 to $18,500 range comes down to the "guts" of your home. If you are just doing a straight swap of an old gas furnace in a smaller bungalow near Fanshawe College, you might stay closer to that $6,500 mark. This usually covers a standard-efficiency unit and basic labor.

However, most Londoners today are opting for full HVAC overhauls. A high-end project hitting that $18,500 ceiling usually involves a high-efficiency variable-speed furnace paired with a central air conditioning unit or a modern heat pump. The average price of $11,901 typically covers a mid-to-high efficiency furnace, a new evaporator coil for your AC, a programmable thermostat, and the labor required to modify existing transitions. In London's older housing stock, you often pay a premium because contractors have to retro-fit new, larger high-efficiency venting through old brick foundations or tight crawlspaces.

What Affects the Cost?

Several factors push your quote up or down, and some are very specific to the London market right now.

First, the labor market here is tight. With the ongoing residential expansion in areas like Byron and Sunningdale, skilled HVAC technicians are in high demand. You aren't just paying for the metal box; you're paying for a licensed gas fitter whose schedule is likely booked out for weeks.

Second, the type of fuel matters. While natural gas remains the standard, more homeowners are looking at cold-climate heat pumps. These systems can handle London's January dips but come with a higher upfront price tag than a simple furnace.

Third, the age of your home is a major player. If you live in a mid-century home in Oakridge, your ductwork might be perfectly sized for a modern blower. But if you’re in a 19th-century home near Richmond Row, your ducts might be undersized or non-existent, requiring expensive "high-velocity" systems or extensive bulkheading.

Finally, permits and inspections add to the tally. In London, an HVAC permit is required for new installations or significant alterations to the ducting system. While the city's building department is efficient, the requirement for a professional heat loss/heat gain calculation (often called an HRAI design) can add a few hundred dollars to your initial engineering costs.

How London Compares to Other Canadian Cities

London currently sits on the higher end of the spectrum for mid-sized Ontario cities. When you compare our $11,901 average to Barrie, where the average is $11,421, we are slightly more expensive despite having similar climates. The gap widens when you look at Windsor, which sits at $10,213. Even though Windsor saw a higher year-over-year increase of 15%, their baseline remains lower, likely due to a different mix of housing types and a slightly more competitive contractor pool.

If you look out west to Kelowna, prices jump significantly to an average of $13,050. This is often due to the higher cost of shipping equipment through the mountains and a very different regulatory environment. On the other hand, Regina offers a much lower entry point at $10,960, though their range is massive (up to $22,000) because of the extreme heating requirements needed for Saskatchewan winters. London's pricing reflects its status as a growing hub; we aren't as expensive as the GTA, but we are no longer the "budget" option in Ontario.

How to Save Money on Furnace/HVAC Replacement

The best way to save money is to avoid an emergency "no-heat" call in the middle of February. When your furnace dies during a blizzard, you lose all your bargaining power.

1. Shop in the Shoulder Seasons: Right now in August is actually a decent time to start getting quotes, but the absolute "sweet spot" in London is often late April or May. Contractors are finished with the winter rush and haven't yet been slammed by the first heatwave's AC failures.
2. Check for Enbridge Rebates: Use the current provincial and utility-led conservation programs. In 2026, there are still significant incentives for switching to hybrid heat pump systems that can shave thousands off your net cost.
3. Bundle Your Services: If you know your AC is on its last legs too, replace it at the same time as the furnace. You'll save significantly on labor and permit fees compared to doing them two years apart.
4. Right-Size Your Unit: Don't let a salesperson talk you into a "5-ton" unit if a "3-ton" unit fits your square footage. An oversized furnace will "short-cycle," turning on and off too often, which wears out the motor and spikes your gas bill.
5. Local Suppliers: Ask your contractor if they use local distributors like Desco or Noble in London. Sourcing parts that are stocked locally can sometimes reduce "truck freight" surcharges that get passed on to you.

Is 2026 a Good Time for Furnace/HVAC Replacement in London?

To be honest, it is a challenging year. With a 12.5% increase in costs since last year, prices aren't showing signs of dropping back to 2023 levels. However, waiting might cost you more. Equipment manufacturers have been implementng semi-annual price hikes due to the rising cost of specialized metals and microchips used in modern "smart" furnaces.

If your current system is over 15 years old, you are likely losing money every month on inefficient fuel use. Given the current market, it is better to lock in a price now rather than gambling on 2027 prices. The London market is steady, and there are plenty of reputable local firms like Donaldson Heating and Air Conditioning or Salmon Plumbing & Heating that have been in the city for decades. Get three quotes now so you can compare the "apples to apples" hardware specs before the autumn chill hits.

FAQ

How long does furnace/hvac replacement take in London?

Most standard replacements in London take a single day. A crew usually arrives at 8:00 AM and has the heat or air running by 5:00 PM. If you are switching from an old oil tank to natural gas or installing new ductwork in a heritage home, expect the project to stretch to three or four days.

Do I need a permit for furnace/hvac replacement in London?

Yes. The City of London requires a building permit for any "material alteration" to your HVAC system. This ensures the venting is safe and the gas lines are pressure-tested. Most reputable contractors will include the permit fee and the coordination of the city inspector's visit in their total quote.

What is the most common HVAC system in London homes?

Most London homes use a forced-air natural gas furnace. Because our city sits in a high-humidity zone during the summer, nearly all modern replacements include a matched central air conditioning unit. We are also seeing a massive surge in "hybrid" systems that use an electric heat pump for the spring and fall, switching to gas only during the coldest winter nights.

Check the latest furnace/hvac replacement costs for London and other cities on LookupCost.com.