London Furnace/HVAC Replacement Cost Guide - April 2026 Prices

Replacing your furnace or HVAC system in London currently costs an average of $8,500 CAD, with most homeowners spending somewhere between $5,500 and $12,000 CAD. Dealing with a dead heater in the middle of a Southwestern Ontario winter is a nightmare nobody wants. If your unit is pushing 15 years or making sounds like a bag of hammers, it is time to look at the numbers. Prices in London have climbed 4.5% since last year. While that is a smaller jump than we saw during the supply chain chaos of a few years ago, it still means waiting another season will likely cost you more.

Londoners are in a bit of a unique spot right now. We get those humid, heavy summers and bone-chilling February winds. Your HVAC system works double duty here. Because of that, the "average" price often reflects a mid-to-high efficiency system that can handle the swing from +30°C to -20°C without breaking your bank on monthly Enbridge bills.

How Much Does Furnace/HVAC Replacement Cost in London?

When you look at the $5,500 to $12,000 CAD range, you are seeing the difference between a basic swap and a full-system overhaul. A budget-friendly project usually involves a standard-efficiency gas furnace replacement in a smaller home or townhouse. You are getting the heat back on, but you aren't getting many bells or whistles.

If you are hitting that $8,500 CAD average, you are likely looking at a high-efficiency furnace with a decent SEER rating for the air conditioning component. This is the sweet spot for most detached homes in neighborhoods like Wortley Village or Byron. You get a unit that qualifies for current energy rebates and keeps the house comfortable year-round.

The top end of the scale - anything over $10,000 CAD - usually involves more than just a box swap. This might include new ductwork, a high-end heat pump integration, or a multi-stage system that offers precision climate control. If you have a larger two-story home in North London, you might find yourself closer to this bracket because of the sheer power required to move air through a bigger floor plan.

What Affects the Cost?

Several factors push your quote up or down. In London, the biggest driver is the type of fuel and the efficiency rating. High-efficiency units cost more upfront but save you a fortune on gas. Right now, many homeowners are looking at hybrid systems - pairing a gas furnace with an electric heat pump. It costs more to install, but it’s the way the market is moving.

The size of your home matters more than people think. A 1,200-square-foot bungalow doesn't need the same British Thermal Units (BTUs) as a 3,000-square-foot new build in Sunningdale. If your contractor installs a unit that is too big, it will "short cycle," turning on and off too fast and wearing out the motor. If it’s too small, it will run forever and never get the house warm.

Labor in London is another factor. We have a solid pool of HVAC technicians, but the city is growing fast. New housing developments are soaking up a lot of the local trade talent. If you need a rush job in the middle of a cold snap, expect to pay a premium for emergency labor.

Finally, don't forget the vents and pipes. If you are switching from an old mid-efficiency furnace to a modern high-efficiency one, the technician has to run new PVC venting out the side of your house. They can't just use the old chimney flue. This extra labor and material add a few hundred dollars to the bill.

How London Compares to Other Canadian Cities

London is actually a relatively affordable place for HVAC work compared to our neighbors. If you look down the 401 toward Kitchener, you’ll find an average price of $12,500 CAD. That is a massive jump for a city just an hour away. The Kitchener-Waterloo market is seeing a 6.5% year-over-year increase, driven by a much tighter labor market and higher demand from tech-sector housing.

Hamilton is also pricier, with an average cost of $11,000 CAD. Like Kitchener, Hamilton is seeing 6.5% growth in costs. London’s $8,500 CAD average looks pretty good by comparison.

If you look further west, Winnipeg comes in lower at $7,500 CAD, despite their much harsher winters. Edmonton is even lower at $6,500 CAD. Out east, Montreal and Ottawa are seeing higher growth rates of 6.5%, with Montreal matching London's $8,500 CAD average and Ottawa sitting slightly lower at $7,500 CAD. London remains a middle-of-the-pack city for pricing, which is a win for local homeowners.

How to Save Money on Furnace/HVAC Replacement

The best way to save money is to stop waiting for your furnace to die. If you buy an HVAC system in an emergency, you lose all your bargaining power. You'll take whatever unit is in stock and pay whatever the tech asks just to stop seeing your breath in the living room.

April is actually a fantastic time to buy. The "shoulder seasons" (spring and fall) are when HVAC companies are slowest. They aren't buried in emergency repair calls, so they are often more willing to offer a discount or a better package deal to keep their crews busy. Ask for "off-season" pricing.

Check for rebates. Between federal programs and local utility incentives, you can often claw back $1,000 or more if you choose an ENERGY STAR certified system. Always ask your contractor to provide the specific model numbers so you can verify rebate eligibility before you sign the contract.

Get at least three quotes. Prices for the exact same unit can vary by $1,000 CAD or more between different London companies. Make sure you are comparing apples to apples - check the warranty terms and the labor guarantee. A cheaper quote that only offers a one-year labor warranty might cost you more in the long run.

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

Honestly, it is a decent time. While the 4.5% increase shows that prices aren't going down, the market has stabilized compared to the double-digit spikes we saw a few years back. Waiting until 2027 will likely just mean paying another 4% to 6% more for the same equipment.

Carbon taxes and shifting energy regulations are also making older, inefficient furnaces more expensive to run every month. Upgrading now locks in your operating costs at a lower rate. If your system is over 12 years old, start getting quotes this month. It’s better to be proactive than to be the person calling for a furnace/hvac replacement cost in London while your pipes are freezing.

FAQ

How long does furnace/hvac replacement take in London?

A standard swap usually takes one full day. If the crew arrives at 8:00 AM, you should have heat or AC back by dinner. If you are moving the unit to a different part of the house or replacing all the ductwork, expect it to take two to three days.

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

Yes, you generally need a mechanical permit from the City of London. Most reputable HVAC contractors will handle the permit application for you and include the fee in your quote. This ensures the installation is inspected and meets the Ontario Building Code.

Can I just replace the furnace and keep my old AC?

You can, but it isn't always smart. HVAC systems are designed to work together. An old AC unit might not be compatible with the blower motor in a new high-efficiency furnace, which can lead to poor performance or a shortened lifespan for both units.

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