Furnace Replacement Cost in BC (2026): What Lower Mainland Homeowners Actually Pay

The Short Answer

A new gas furnace in BC’s Lower Mainland typically costs $4,000 to $8,000 installed in 2026, before GST. A typical two-stage job lands around $5,500 to $6,500. Simple swaps in an easy basement can come in near the low end. Complex jobs in attics, crawlspaces or older homes that need new venting can run past $8,000, occasionally reaching $10,000 or more.

The furnace itself is usually only about half of the bill. The other half is labour, venting, the gas connection, condensate drainage, the permit and whatever your home’s existing setup needs to meet current code. That is why two quotes for the same furnace can be thousands of dollars apart.

Quick reality check: since July 2019, every new residential gas furnace sold in Canada must be at least 95% AFUE. If someone quotes you a cheap 80% “mid-efficiency” unit, ask questions. The real choice today is between single-stage, two-stage and modulating high-efficiency furnaces.

Furnace Replacement Cost by Furnace Type

Furnace type	Typical installed cost (Lower Mainland, 2026)	Best for
Single-stage, 95% AFUE	$4,000 - $5,500	Budget replacements, rentals, smaller homes
Two-stage, 96% AFUE, variable-speed blower	$5,000 - $7,000	Most family homes; quieter, more even heat
Modulating, 97-98% AFUE	$6,500 - $8,000+	Larger homes, comfort-focused owners, long-term ownership

What the stages actually mean:

• Single-stage furnaces are either fully on or fully off. They work, but they cycle more and you feel the temperature swing.
• Two-stage furnaces run on a low flame (about 60-70% capacity) most of the time and only switch to high on the coldest days. On a Lower Mainland winter, that means long, quiet, low-fire cycles. For most homes this is the value sweet spot.
• Modulating furnaces adjust the flame in small steps to match the exact heat the house needs. They are the most comfortable and slightly more efficient, but the premium takes years to pay back in our mild climate.

Brand matters less than these categories and less than the quality of the installation. If you are comparing brands, our guides on the top furnace brands in Canada and Goodman vs Carrier vs Lennox cover the trade-offs.

Furnace Cost by Home Size

Furnaces are sized in BTUs per hour, based on a heat-loss calculation for your house (not just square footage). As a rough guide for typical Lower Mainland construction:

Home size	Typical furnace size	Typical installed cost (two-stage)
Up to 1,500 sq ft (townhouse, small bungalow)	40,000 - 60,000 BTU	$4,500 - $6,000
1,500 - 2,500 sq ft	60,000 - 80,000 BTU	$5,000 - $6,500
2,500 - 3,500 sq ft	80,000 - 100,000 BTU	$5,500 - $7,500
3,500+ sq ft	100,000 - 120,000 BTU, or two systems	$7,000 - $10,000+

Bigger is not better. An oversized furnace short-cycles, wears out faster and leaves cold spots. A proper quote should include a heat-loss calculation, especially if you have upgraded windows or insulation since the old furnace went in. Many older Lower Mainland homes have furnaces 30-50% larger than they need.

The Add-Ons That Move the Price

These are the line items that explain most of the gap between a $4,500 quote and an $8,000 quote for the same furnace:

Add-on	Typical cost	When it applies
Venting conversion (chimney to PVC)	$500 - $1,500	Replacing an old chimney-vented furnace with a condensing furnace
Orphaned water heater fix (chimney liner or new venting)	$800 - $2,000	Gas water heater was sharing the chimney with the old furnace
Gas line upsizing or re-routing	$300 - $1,000	New furnace needs more gas, or the location changes
Condensate drain or pump	$150 - $400	No floor drain near the furnace
Ductwork modifications or new plenum	$500 - $3,000	Different furnace footprint, undersized returns, or airflow problems
New thermostat	$150 - $500	Old thermostat is incompatible with a two-stage or modulating furnace
Difficult access (attic, crawlspace, tight closet)	$500 - $2,000	Extra labour and equipment
Gas permit	$150 - $250	Every gas furnace installation

The orphaned water heater catches a lot of homeowners by surprise. In many older homes, the furnace and gas water heater share one chimney. When the furnace switches to its own PVC vent, the water heater is left alone in a chimney that is now too big for it. That can cause condensation and poor draft, so code requires the venting to be fixed. A good quote spots this upfront.

What a Complete Quote Should Include

Before you compare prices, make sure each quote covers the same scope:

• The furnace (model number, AFUE, stages, blower type)
• Removal and disposal of the old furnace
• Gas permit and gas connection
• Venting (intake and exhaust), including any chimney work
• Condensate drain or pump
• Electrical connection and thermostat wiring
• Start-up, combustion testing and a CO safety check
• Warranty registration (some manufacturers cut the warranty in half if the unit isn’t registered within 60 days)
• Labour warranty from the installer

If a quote is noticeably cheaper, it is usually missing one of these items, or it is for a single-stage furnace when you were expecting a two-stage.

Are There Furnace Rebates in BC in 2026?

Not for a gas furnace on its own. But starting Oct. 15, 2026, FortisBC’s dual fuel rebate is back, and that changes the math for anyone replacing an older furnace.

1. Dual fuel (FortisBC natural gas homes): replace a gas furnace that is at least 15 years old with a qualifying dual fuel system, a new high-efficiency furnace paired with a heat pump, and FortisBC pays up to $4,000, or up to $8,000 for income-qualified households. The heat pump handles mild days and all your cooling; the furnace takes over in the cold. Key conditions:
   • The system needs an AHRI certified reference number covering the heat pump’s outdoor and indoor units and the furnace model.
   • The switchover to the furnace must be set at 5°C or lower in the Lower Mainland.
   • It must be installed on or after Oct. 15, 2026 by a TSBC-licensed gas contractor listed with the Home Performance Contractor Network (HPCN) for this rebate, who submits a commissioning sheet. You then apply for the rebate yourself. Our technicians have completed the required FortisBC dual fuel training.
2. Switch to a heat pump (CleanBC): under the CleanBC Energy Savings Program rules for invoices dated July 6, 2026 or later, you replace the gas furnace with a ducted heat pump and remove the gas heating equipment. replace the gas furnace with a ducted heat pump and remove the gas heating equipment. Income-qualified households can receive up to $13,000 (Income Level 1), $7,000 (Level 2) or $3,500 (Level 3), or up to $16,500 for a combined space and water heat pump. Backup heat must be electric or wood; a gas fireplace can stay as secondary heat. The home’s assessed value must also be under the program cap ($1.2 million for Levels 1-2, $1.82 million for Level 3).
3. Tank propane homes: CleanBC’s own dual fuel rebate covers rural homes on tank propane (up to $12,000 at Income Level 1).

You can receive one primary heating rebate per home, so you choose between the FortisBC dual fuel rebate and a CleanBC heat pump rebate for the same system. Eligibility rules change during the year, so confirm the current requirements on FortisBC’s rebates page or CleanBC Better Homes before you sign. These programs require a contractor listed with the Home Performance Contractor Network. See our heat pump installation page for how this works.

Repair or Replace?

Replacing makes sense when:

• The furnace is 15-20+ years old and needs a major repair (inducer motor, control board, gas valve)
• The heat exchanger is cracked. This is a safety issue, and on an older furnace it is almost always a replacement
• You’ve needed repairs more than once in the last two years
• Some rooms are always cold, or the furnace is noticeably loud, despite service
• You’re planning to add central air or a heat pump anyway. Replacing the furnace at the same time saves on labour and ductwork changes
• Your gas furnace is 15+ years old. Starting Oct. 15, 2026, that’s the age that makes it eligible for FortisBC’s dual fuel rebate of up to $4,000 when you replace it with a furnace plus heat pump

Rule of thumb: multiply the repair cost by the furnace’s age in years. If the result is over about $5,000 (for example, a $350 repair on a 15-year-old furnace), replacement usually makes more financial sense.

If your furnace simply won’t start, run through our 9 checks before calling a technician first. Many no-heat calls are small, inexpensive fixes.

What a High-Efficiency Furnace Saves

Going from an old 80% furnace to a new 96% furnace cuts the gas you burn for heating by about 17%. Going from a 1990s-era 65% furnace to 96% cuts it by about 32%.

At FortisBC’s mid-2026 residential rates (about $12.60 per GJ in variable charges for the Mainland, plus the daily basic charge), a typical Lower Mainland detached home using around 60-80 GJ a year for space heating saves roughly $130 to $170 a year moving from 80% to 96%. That alone rarely pays for a furnace, which is why the case for replacement is usually about reliability, safety and comfort first, and efficiency second. Check current rates on FortisBC’s residential rates page.

Furnace Costs in Vancouver Character Homes vs. Surrey and Langley New Builds

Where you live in the Lower Mainland changes which add-ons show up on your quote.

Vancouver, Burnaby and New Westminster older homes. Pre-1980 houses in East Vancouver, Kitsilano, Burnaby Heights and Queens Park are where replacements get expensive. Expect chimney-vented furnaces that need a venting conversion, orphaned gas water heaters, original undersized return ducts, and basements that were finished around the furnace. A replacement in a Vancouver character home commonly lands in the $6,500 to $9,500 range once venting and ductwork are sorted. The upside: these homes often see the biggest comfort improvement from a properly sized two-stage furnace.

Surrey, Langley and Coquitlam newer subdivisions. Homes built since the late 1990s usually already have a high-efficiency furnace with PVC side-wall venting, a floor drain nearby and reasonably sized ductwork. Replacements here are typically like-for-like and land in the $4,500 to $6,500 range. In Langley and Surrey townhome complexes, attic or closet installations add access labour, and strata rules may restrict where new vent terminations can go.

North Shore and Fraser Valley. Larger homes in North and West Vancouver often need bigger or zoned systems. Rural Fraser Valley properties in Abbotsford, Chilliwack and Mission may run on propane, which uses a propane-specific furnace configuration and a supplier-coordinated gas connection.

Bottom Line

Budget $4,000 to $8,000 for a new high-efficiency gas furnace in the Lower Mainland, and expect most quotes around $5,500 to $6,500 for a two-stage unit in a typical home. The spread between quotes comes down to venting, gas line work, ductwork and access, so compare scope line by line, not just the total.

If your furnace is 15 years or older, ask for a dual fuel price in the same quote. Starting Oct. 15, 2026, FortisBC’s rebate of up to $4,000 (up to $8,000 if income-qualified) can make a furnace plus heat pump cost little more than a furnace alone, and you get air conditioning too.

For an itemized quote with a heat-loss calculation, call 604-991-4894 or send us a message. We handle furnace installation and replacement across the Lower Mainland and Fraser Valley.