Furnace/HVAC Replacement Cost in London (2026)

Homeowners can access the Home Renovation Savings Program (HRS), a partnership between Enbridge Gas and London Hydro, offering up to $7,500 for cold-climate air-source heat pumps and $12,000 for geothermal systems. Additionally, the federal Canada Greener Homes Loan provides up to $40,000 in interest-free financing for qualifying upgrades.

The 2026 industry-wide shift to A2L refrigerants (like R-454B) required new safety sensors and leak detection systems, increasing equipment manufacturing costs by 15-20%. Combined with a 9.9% year-over-year increase in local construction costs in the London CMA, total project prices have risen by approximately $1,000 to $1,500 compared to 2025.

For 2026, the City of London requires a base application fee of $368.85 plus HST for proprietary reviews of equipment. Total permit costs typically range from $400 to $600 depending on the project valuation and whether additional electrical or plumbing inspections are required.

With current Ontario rebates, a dual-fuel system (heat pump + gas furnace) is often the most cost-effective for London's climate. While a high-efficiency gas furnace costs $3,500–$7,000, a cold-climate heat pump ($10,000–$15,000) can have a net cost as low as $3,000 after the $7,500 HRS rebate, providing significant long-term energy savings.