By Mario Vaghei, General Manager, Aire One Peel Heating & Cooling · Published August 26, 2026 · Facts verified August 26, 2026
Three contractors walk through the same basement in the same week and come back with three prices. One is eleven hundred dollars below the others and the homeowner assumes somebody is being greedy. Usually nobody is. The cheap quote is short: it is missing the permit, or the venting change, or the coil that has to match, and those items do not disappear, they arrive later as a change order. This guide is about reading the three sheets side by side. For the price bands themselves, our new furnace cost guide is the number to work from.
In this guide
Why quotes differ · The eight-line checklist · Efficiency tiers and the law · Sizing, or guessing · Permits and who may do the work · The CO rule that changed · Rebates on a furnace · Gas, propane or electric · Red flags · Quote checker · FAQ · Final verdict · Sources
Short answer
Two furnace quotes for the same house differ mainly in what they leave out, not in the price of the furnace. Compare them line by line on model and AFUE, how the size was determined, venting, condensate, thermostat, duct transitions, the building permit, old unit removal, and the labour warranty in years.
The cheapest sheet is often the shortest sheet. A quote that omits the permit and the venting change is not a discount, it is a deferral.
Key takeaways
- In Mississauga a furnace replacement of higher efficiency than the existing unit needs a building permit. The 2026 fee for a house is $244.00 CAD.
- Only a TSSA-registered fuels contractor may legally do fuels work in Ontario, and you can verify any company on TSSA's public registry before you sign.
- There is no Ontario rebate for a gas furnace. Furnaces do not appear anywhere on the Home Renovation Savings eligible list.
- Since January 1, 2026 a carbon monoxide alarm is required on every storey of a home with a fuel-burning appliance, not only next to the bedrooms.
- The smart thermostat rebate is $100 CAD, not the $75 CAD still printed on older pages.
Compare furnace quotes: why two prices for the same house differ by thousands
Because the furnace is rarely the variable. Two contractors quoting the same two-stage condensing model are buying it at similar cost, so a gap of two thousand dollars is almost always sitting in the work around it: what the venting has to become, whether the indoor coil still fits, whether the electrical panel can take the circuit, and whether the permit and the disposal are on the sheet or waiting to surprise you. The table below is the map. It carries no invented dollar figures, because the only one of these with a published price is the permit.
| Line item | Why it moves the price | How to check it on the sheet |
|---|---|---|
| Efficiency tier and staging | Two stage and modulating furnaces carry more complex gas valves, blowers and controls | A model number and an AFUE figure, not the words high efficiency |
| Venting | A condensing furnace vents through plastic pipe to a side wall. If the old one used the chimney, the water heater sharing that chimney now has a problem too | Does the quote name the new vent run, and does it say what happens to the water heater |
| Indoor coil and duct transitions | A new cabinet is a different size, so plenum and transition sheet metal is real labour | Transitions listed as included, or listed as an allowance |
| Condensate drain or pump | Condensing furnaces produce acidic water that has to go somewhere | Named on the sheet, with a pump if there is no gravity drain |
| Thermostat | A two stage or modulating furnace needs a control that can speak to it | Model named, and the $100 CAD rebate claimed on your behalf or not |
| Electrical | A dedicated circuit, a disconnect, sometimes a full panel that has no room left | Panel work quoted separately rather than assumed away |
| Building permit | Mississauga requires one for a furnace replacement of higher efficiency than the existing unit | $244.00 CAD in 2026 for a house, and the sheet should say who pulls it |
| Removal, disposal and site protection | The old unit has to leave the house and the stairs have to survive it | Stated in words, not assumed |
What should a complete furnace quote include?
Eight lines. Compare furnace quotes on these and nothing else at first: if one sheet answers all eight and a rival answers four, they are not competing on price, they are describing different jobs. Print this and mark each sheet.
- Model number and AFUE, written out. Not high efficiency Carrier.
- Heating capacity in BTU per hour, and how it was determined. A heat loss calculation done inside the house, not floor area arithmetic done on the driveway.
- Blower type: single speed, multi speed, or a variable speed electronically commutated motor. This is most of the comfort difference between tiers.
- Venting plan, including what happens to any appliance that shared the old chimney.
- Condensate handling, thermostat, filter cabinet and duct transitions: each marked included or extra.
- Building permit, with who files it and what it costs.
- Removal and disposal of the old furnace, and protection for floors and stairs.
- Warranty in three parts: parts, heat exchanger, and the installer's own labour warranty in years. Ask who registers the manufacturer warranty and by when, because an unregistered warranty is a shorter warranty.
One question is worth asking every contractor who visits: what would a cold climate heat pump paired with this furnace cost, and does it change the rebate picture? In a gas heated home the answer is usually that it does not change it much, and that is a useful thing to hear from someone who could have sold you the bigger job. Our heat pump versus furnace guide and the running cost arithmetic behind it work it through.
Does the efficiency tier explain the gap?
Partly, and less than most quotes imply. Canada's Energy Efficiency Regulations set the floor for a standard residential gas furnace at 95 per cent AFUE for units manufactured on or after July 3, 2019, which is why the 80 per cent mid-efficiency furnace your parents had is not on anyone's price list. What almost every furnace guide gets wrong is that the regulation still carries a separate item permitting an 80 per cent AFUE non-condensing furnace as a replacement in a defined case. It is rare in Peel Region, it is not what you want in a normal basement, and it is worth knowing exists if a quote looks unusually low.
| Appliance | Minimum standard | Applies to units manufactured |
|---|---|---|
| Gas furnace, standard | 95 per cent AFUE | On or after July 3, 2019 |
| Gas furnace, previous standard | 90 per cent AFUE | December 31, 2009 to July 3, 2019 |
| Gas furnace, non-condensing replacement case | 80 per cent AFUE | On or after July 3, 2019 |
| Oil furnace | 83 per cent AFUE | On or after July 3, 2019 |
| Electric furnace | No AFUE minimum. Regulated on blower energy: a brushless permanent magnet motor, or the Fan Energy Rating standard | Current standard |
Above the floor, the tiers are about comfort rather than fuel. Natural Resources Canada states that an ENERGY STAR certified furnace running on gas uses about 6 per cent less energy than a standard model, and that certification requires a blower that varies its speed rather than cycling on and off. That is the honest frame: buy the higher tier for quieter, steadier heat and a better blower, and treat the fuel saving as a bonus rather than a payback calculation. Which brand carries which tier is a separate question, covered in our best furnace brand for Ontario winters comparison.
Was the furnace sized, or guessed?
This is the single question that separates a professional quote from a fast one, and it costs nothing to ask. Residential heating equipment in Canada is sized by a heat loss and heat gain calculation to CSA F280:12 (R2025), the standard titled Determining the required capacity of residential space heating and cooling appliances, and the Ontario Building Code requires heating capacity to be determined in accordance with it. Floor area alone is not a calculation. Insulation levels, window area and orientation, air tightness, ceiling heights and duct layout all move the answer for two houses with identical square footage.
An oversized furnace is the common outcome of a guess, and it is worse than a slightly small one. It short cycles, wears its ignition components faster, and heats the room with the thermostat while the far bedroom stays cold. If nobody walks the house, opens the panel, or asks about insulation before naming a capacity, that is not sizing. Our furnace size guide explains what the calculation actually measures.
Which approvals belong on the quote, and who may do the work?
Two things are not optional in Ontario: the municipal building permit where one is triggered, and the requirement that fuels work be done by a registered contractor. The City of Mississauga lists both "Furnace replacement that's of a higher efficiency than existing" and "Furnace ducts being altered" among the work requiring a building permit, which in practice catches nearly every mid-efficiency to condensing replacement in the city. The 2026 fee for a house is $244.00 CAD, and Mississauga's own document list asks for heat loss calculations and an HVAC drawing only when ducts are being altered, plus a Residential Furnace Replacement Form in every case.
| Where the home is | Building permit issued by | Who may do the gas work |
|---|---|---|
| Mississauga | City of Mississauga. Furnace replacement $244.00 CAD in 2026, residential first review 10 business days | A TSSA-registered fuels contractor, using TSSA-certified gas technicians |
| Brampton | City of Brampton, own fee schedule | Same, province wide |
| Caledon and Bolton | Town of Caledon, own fee schedule | Same, province wide |
| Milton | Town of Milton, own fee schedule | Same, province wide |
| Georgetown and Halton Hills | Town of Halton Hills, own fee schedule | Same, province wide |
| Etobicoke | City of Toronto, own fee schedule | Same, province wide |
The Technical Standards and Safety Authority states that fuels fired appliances must be maintained by TSSA-registered contractors, and that registered contractors are required to hire TSSA-certified gas technicians. You can check any company yourself before signing, on TSSA's public Find a Registered Fuels Contractor tool. Our own registration is FS R0076624709. The correct language matters if you are reading a quote closely: a company is a registered fuels contractor, a person is a certified gas technician, and nobody in Ontario is TSSA-licensed. Vetting the company itself, rather than the sheet of paper, is a separate job, and our guide to choosing an HVAC company in Mississauga covers the credentials, the questions to ask before you hire, and the red flags.
The carbon monoxide rule changed on January 1, 2026
Ontario extended its carbon monoxide alarm requirement this year, and almost no furnace guide has caught up. A home with a fuel-burning appliance has always needed an alarm adjacent to each sleeping area. As of January 1, 2026 an alarm is required on every storey of the home, including storeys with no bedrooms. A new furnace is a fuel-burning appliance, so this applies to the house the moment the quote is signed, whatever the quote says about it.
Ask for the alarms in writing: the Ontario Fire Code requirement now covers every storey of a home with a fuel-burning appliance, an attached garage, or a fireplace. A contractor replacing your furnace is the right person to tell you where yours have to go, and a good quote says so. Alarms are inexpensive; a bad install with a cracked heat exchanger is not.
If an alarm sounds, get everyone outside first and call from outside. Do not go back in to open windows or hunt for the source. Gas work, venting and combustion testing belong to a TSSA-certified gas technician, never to a homeowner with a screwdriver.
Is there a rebate that belongs on a furnace quote?
Not for the furnace itself. The Home Renovation Savings Program, run by Enbridge Gas with Save on Energy, publishes its eligible upgrades openly and a gas furnace does not appear anywhere on the list. If a quote shows a furnace rebate line, ask which program and read the program page yourself before you count on it.
| Programme or upgrade | Status for a furnace replacement | Amount |
|---|---|---|
| Gas furnace, on its own | Not on the Home Renovation Savings eligible list | $0 |
| Smart thermostat | Eligible, and it is the one line on a furnace quote that can carry a rebate | $100 CAD |
| Cold climate heat pump, gas heated home | Eligible, pre-approval mandatory before installation | $500 CAD per ton, up to $2,000 CAD |
| Cold climate heat pump, electric, oil, propane or wood heated home | Eligible, pre-approval mandatory | $1,250 CAD per ton, up to $7,500 CAD |
| Canada Greener Homes Grant and Loan | Both closed. NRCan states new applications cannot be approved | Closed |
Two numbers on that table are commonly published wrong. The smart thermostat rebate is $100 CAD, increased from $75 CAD, and Save on Energy prints the old figure struck through beside the new one; older Enbridge page descriptions still carry $75 CAD, which is where most contractor guides copied it from. And the heat pump rebate for a gas heated home is capped at $2,000 CAD, not the $7,500 CAD that applies only to homes heated with electricity, oil, propane or wood. Our guide to government rebates for HVAC in Ontario tracks the rest.
Gas, propane or electric: does the fuel change how you read the quote?
It changes which lines you scrutinise. On natural gas, which is the default across Peel Region, the venting plan and the chimney question are the lines that hide money. On propane, common in Caledon, rural Milton and parts of Halton Hills, the same condensing appliance is configured differently, so ask for the propane conversion kit, the regulator and the tank connection as separate lines rather than folded into one number.
On electric, there is no AFUE to compare at all, because electric furnaces are regulated on blower energy rather than combustion efficiency, and the real comparison is not against another electric furnace but against a cold climate heat pump, which delivers several units of heat per unit of electricity and earns rebate money an electric furnace cannot.
Fuel cost context, since it comes up on every quote conversation: the Ontario Energy Board puts a typical Enbridge residential bill in the rate zone covering Peel at $1,028.62 CAD a year on an assumption of 2,400 cubic metres, effective with the July 1, 2026 rate change.
The federal carbon charge on natural gas was set to $0.00 effective April 1, 2025, down from 15.25 cents per cubic metre, which cut the cost of gas heat sharply and is the main reason a gas furnace still beats a heat pump on running cost in a gas heated Ontario home. A small facility carbon charge remains on the bill. If you want that arithmetic in full, it is in our heat pump versus furnace running cost guide.
What does a quote that is too cheap usually leave out?
A pattern shows up often enough to name. Here are the five omissions that most often explain a gap, and what each one costs you later rather than today.
| What is missing | Where it comes back |
|---|---|
| No permit line | Either as a change order, or as unpermitted work that surfaces when you sell the house |
| No sizing method named | An oversized furnace that short cycles for fifteen years and never fixes the cold bedroom |
| Venting described as included with no detail | On install day, when the water heater that shared the chimney needs its own answer |
| No labour warranty in years | The first service call, where a parts warranty covers the part and not the visit |
| A rebate line with no programme named | At the end, when there was never a furnace rebate to claim |
The possible downside of buying from us. We are a Carrier Factory Authorized Dealer, so our recommendations start from the Carrier lines we stock, service and warranty. If you want to audition every brand on the market, an independent multi-line shop will show you a wider menu. What we will do is put the eight lines above on the sheet before you ask, and pull the permit ourselves. Our furnace installation service page covers what the visit looks like.
Quote checker: is the sheet in front of you complete?
Three questions about one quote. It will tell you to go back to the contractor rather than to call us, when that is the right answer.
How we know this
Every rule, fee, rebate amount and efficiency threshold on this page was read directly from the body that publishes it on August 26, 2026: the Energy Efficiency Regulations for the AFUE minimums, the City of Mississauga 2026 fee schedule and permit document list, the Technical Standards and Safety Authority for who may do fuels work, the Government of Ontario for the carbon monoxide requirement, the Home Renovation Savings Program for rebate amounts, and the Ontario Energy Board for gas rates. No HVAC contractor blog, price aggregator or lead generation site was used as a source for anything here.
This page deliberately publishes no installed price band of its own. The cluster's price authority is our new furnace cost guide, and one page carrying the numbers is worth more than four pages carrying four slightly different versions of them.
Watch: who turns up with the quote
Company footage from our own channel. Nothing loads from YouTube until you press play.
The install and repair side of the business, filmed on the vans that show up.
Bring us the other two quotes
We run the heat loss calculation, quote the tiers side by side, put the permit and the disposal on the sheet, and tell you plainly when another quote is the better deal. Aire One Peel Heating & Cooling, TSSA-registered fuels contractor FS R0076624709, 1625 Courtneypark Dr E, Mississauga, ON L5T 1V9. Serving Mississauga, Brampton, Caledon, Bolton, Georgetown, Etobicoke and Milton.
Frequently asked questions
Why are furnace quotes so different for the same house?
Because the furnace itself is rarely the variable. Two contractors quoting the same model pay similar cost for it, so a large gap usually sits in venting changes, duct transitions, the indoor coil match, electrical work, the building permit and disposal. A cheaper quote is often a shorter one, and the missing items return later as a change order.
What should a furnace quote include?
Model number and AFUE, capacity in BTU per hour with the sizing method named, blower type, the venting plan, condensate handling, thermostat, duct transitions, the building permit and who files it, removal and disposal of the old unit, and warranty split into parts, heat exchanger and the installer's own labour warranty in years.
Do I need a permit to replace a furnace in Mississauga?
Yes in most cases. The City of Mississauga lists furnace replacement of a higher efficiency than the existing unit, and any duct alterations, as work requiring a building permit. The 2026 fee for a house is $244.00 CAD and the residential first review target is ten business days. Heat loss calculations and a drawing are required when ducts are altered.
Are there rebates for a new furnace in Ontario?
No. A gas furnace does not appear on the Home Renovation Savings Program eligible upgrade list, and both the Canada Greener Homes Grant and Loan are closed to new applications. The one rebate that can appear on a furnace quote is the smart thermostat at $100 CAD, increased from the $75 CAD still printed on some older pages.
Should the building permit be included in a furnace quote?
Yes, and it belongs on the sheet as a named line rather than an assumption. In Mississauga a furnace replacement of higher efficiency than the existing unit requires a building permit, and the 2026 fee for a house is $244.00 CAD. Ask which party files it. A quote that omits the permit is not cheaper than one that includes it, only shorter.
Do all new furnaces have to be 95 per cent efficient?
A standard residential gas furnace manufactured on or after July 3, 2019 must reach 95 per cent AFUE. The regulations also carry a separate item permitting an 80 per cent AFUE non-condensing furnace in a defined replacement case, so the blanket claim that 95 per cent is the only legal option is not quite right. Oil furnaces are set at 83 per cent.
How many carbon monoxide alarms do I need with a new furnace?
A home with a fuel-burning appliance needs an alarm adjacent to each sleeping area, and since January 1, 2026 also on every storey of the home, including storeys with no bedrooms. A new gas furnace is a fuel-burning appliance, so the requirement applies. Ask your contractor to confirm placement as part of the job.
Final verdict
Compare furnace quotes sheet by sheet, not total by total. A quote that names the model, the AFUE, the measured capacity, the venting plan, the permit and the disposal is describing a whole job, and only quotes that describe the same job can be compared on price at all. When one sheet is short by four lines and cheaper by eleven hundred dollars, you have found the four lines, not a bargain.
Then check two things that cost nothing: that the company appears on TSSA's registry of registered fuels contractors, and that somebody measured your house before naming a capacity. Everything else on a furnace quote can be renegotiated. The size cannot, and you live with it for fifteen years. For the price bands to hold those quotes against, use our new furnace cost guide, or call 905-564-8545 and we will read the other two quotes with you.
Sources and references
- Energy Efficiency Regulations, 2016 (SOR/2016-311), section 259, gas furnaces, 95 per cent AFUE for units manufactured on or after July 3, 2019: laws-lois.justice.gc.ca
- Energy Efficiency Regulations, 2016 (SOR/2016-311), section 263, oil furnaces, 83 per cent AFUE: laws-lois.justice.gc.ca
- Natural Resources Canada, ENERGY STAR certified furnaces, about 6 per cent less energy on gas and a variable speed blower: natural-resources.canada.ca
- City of Mississauga, when a building permit is required: mississauga.ca
- City of Mississauga, documents needed for a furnace replacement permit: mississauga.ca
- City of Mississauga, Schedule B, 2026 Classes of Permits and Fees, furnace replacement $244.00 CAD: mississauga.ca (PDF)
- Technical Standards and Safety Authority, Be Fuels Wise, hire registered and certified professionals: tssa.org
- Technical Standards and Safety Authority, find or verify a registered fuels contractor: tssa.org
- Government of Ontario, carbon monoxide safety, alarm on every storey effective January 1, 2026: ontario.ca
- CSA Group, CSA F280:12 (R2025), determining the required capacity of residential space heating and cooling appliances: csagroup.org
- Home Renovation Savings Program, Enbridge Gas with Save on Energy, eligible upgrades and heat pump rebates: homerenovationsavings.ca
- Natural Resources Canada, Canada Greener Homes Loan, closed to new applications: natural-resources.canada.ca
- Ontario Energy Board, Enbridge Gas quarterly rate adjustment backgrounder, July 1 2026, typical residential bill $1,028.62 CAD at 2,400 cubic metres: oeb.ca (PDF)
- Enbridge Gas, federal carbon charge set to $0.00 effective April 1, 2025: enbridgegas.com
Related reading
- How much does a new furnace cost in Mississauga?
- How to choose the best HVAC company in Mississauga
- Should I repair or replace my furnace?
- How long does a furnace last in Ontario?
- Rent or buy a furnace
- Furnace repair in Mississauga
Mario Vaghei
General Manager, Aire One Peel Heating & Cooling
Mario built the eight-line checklist and the omissions table on this page from the quotes homeowners bring us for a second opinion, and had every rule, fee and rebate figure read back to its publishing body before it was printed. General Manager is a business role, not a trade credential: the gas work described here is performed by TSSA-certified gas technicians.