Renting vs. Owning a Furnace in Ontario: What’s the Better Choice for Your Home?
Choosing between renting and buying a furnace is one of the biggest decisions homeowners face when upgrading their heating system. In Ontario, where winters are long and energy costs are high, this choice directly affects your comfort, monthly bills, and long-term expenses.
This guide breaks down the real costs, pros, cons, risks, long-term value, and everything you should consider before deciding whether renting or owning is the right move for your home.
Quick Summary: Should You Rent or Buy a Furnace?
If you want the lowest upfront cost → Renting
If you want the lowest long-term cost → Buying
If you want full control, no contracts, no annual fees → Buying
If you want repairs and maintenance included → Renting
If you plan to live in your home long-term → Buying
If you're unsure how long you’ll stay → Either depending on needs
Understanding Furnace Rental Programs in Ontario
Furnace rental companies promote low-cost or zero-down options with free installation and bundled maintenance. On the surface, it seems like an affordable, stress-free way to upgrade.
How Furnace Rentals Typically Work
You pay a monthly rental fee (usually $49–$89 per month).
The furnace remains owned by the rental company.
Installation is included.
Most programs include repairs, service, and parts.
Contracts often last 10–15 years.
Early cancellation fees can be very high.
Pros of Renting a Furnace
No large upfront cost (helpful if your furnace fails unexpectedly).
Installation cost included.
Predictable monthly payments.
Repairs, parts, labour, and maintenance are typically covered.
Good option for landlords who want predictable budgeting.
Cons of Renting a Furnace
Much more expensive long-term, often 2–4× the cost of buying.
You never own the equipment.
Some contracts include hefty buyout penalties.
Can complicate home sales if the buyer does not want to assume the rental.
Limited control over the system, upgrades, or service provider.
Rental rates often increase over time.
Typical Lifetime Cost of Furnace Rentals (Ontario)
$60–$90/month × 12 months × 15 years
→ $10,800 – $16,200 total
That’s 3–4 times the cost of buying a furnace outright.
READY TO UPGRADE YOUR FURNACE?
Understanding Furnace Ownership
Buying a furnace means you own the equipment outright, giving you total control and the lowest lifetime cost.
How Furnace Ownership Works
You pay for the equipment and installation upfront.
You cover maintenance and repairs unless you buy a protection plan.
No contracts, no rental fees, no buyouts.
You keep the furnace when you sell the home.
Pros of Buying a Furnace
Lowest total cost over the lifespan of the equipment.
You own the system fully.
No contracts or hidden fees.
Increases home value and simplifies selling.
You choose the brand, installer, and service plan.
Better long-term return on investment.
Cons of Buying a Furnace
Higher upfront cost (typically $3,500–$7,500 installed).
You pay for repairs out of pocket.
Maintenance is your responsibility.
Not ideal if you expect to move in the next 1–3 years.
Typical Lifetime Cost of Buying a Furnace
Furnace + installation: $3,500–$7,500
Annual maintenance (optional): $120–$180/year
Occasional repairs over 15 years: $500–$2,000 total
Lifetime ownership cost: $5,000–$9,000(Sometimes even less.)
Cost Comparison: Renting vs. Buying a Furnace in Ontario
How Rental Contracts Affect Home Sales
This is an issue many homeowners don’t realize until it’s too late.
If you’re selling your home:
Buyers may refuse to assume the rental contract.
You may be forced to buy out the contract, often costing $3,000–$7,000.
Some realtors recommend avoiding rentals because they complicate offers.
If you’re buying a home:
Always ask whether the furnace, water heater, or AC is rented.
Rental agreements transfer with the house unless negotiated otherwise.
Monthly rental fees add to your expenses immediately.
When Renting a Furnace Makes Sense
Renting can be a reasonable option for some situations:
You need a furnace urgently and cannot afford the upfront cost.
You plan on staying only 1–3 years.
You prefer predictable monthly expenses with repairs included.
You’re a landlord who wants a hands-off approach.
You value convenience over long-term savings.
When Buying a Furnace Is the Better Choice
Buying makes the most sense if you:
Plan to stay in your home for 5+ years
Want the lowest long-term cost
Prefer full control over your equipment
Want to avoid contracts and fees
Want to increase your home’s value
Prefer choosing your own installer, brand, and service level
Long-Term Value: The Real Winner
From a financial perspective, buying a furnace almost always wins.
Even after factoring in occasional repairs, most homeowners save thousands of dollars over the lifespan of the system by choosing to own rather than rent.
Renting costs more for one reason: Convenience comes at a premium.
If you want:
Convenience
No upfront investment
Repairs included
→ Renting is fine.
If you want:
Lowest total cost
Full ownership
Better home resale value
→ Buying is the smarter long-term move.
FAQs: Renting vs. Buying a Furnace
Is renting a furnace really more expensive than buying?
Yes. Over 10–15 years, renting often costs 2–4× more than buying, even when you include service and repairs.
How long is a typical furnace rental contract?
Most rental agreements range from 10–15 years, with built-in annual price increases and early buyout penalties.
What happens if I want to sell my house but I’m renting a furnace?
Most buyers do not want to assume rental contracts. You may be forced to buy out the rental, which can cost thousands of dollars.
Are repairs really free in rental programs?
Typically yes—but only if the issue falls under the rental’s terms. Some repairs, negligence, or code upgrades may not be covered.
Can I buy out a furnace rental contract early?
Yes, but early buyout fees are often high. You’ll need to contact the rental company to get an exact payout amount.
Is renting a furnace a bad idea?
Not always. Renting is helpful if you cannot afford upfront costs, need emergency replacement, or prefer predictable monthly expenses.
Does buying a furnace increase home value?
Yes. Fully owned HVAC equipment is more attractive to buyers and eliminates headaches during the home-selling process.
What is the typical cost to buy a furnace in Ontario?
Most high-efficiency furnaces range from $3,500–$7,500 installed, depending on size, efficiency rating, and brand.
Are there financing options for buying instead of renting?
Many HVAC companies offer financing, allowing you to pay monthly without entering a rental contract.
Is maintenance required even if I rent a furnace?
Most rental plans include maintenance, but homeowners should still change filters and monitor system performance.