Heating is the biggest energy bill in most GTA homes, and the furnace is one of the most common big-ticket repairs owners face. If you are buying a home, replacing an old system or trying to lower your bills, this guide covers the main options in Ontario and the rebates available in 2026.
The main systems in GTA homes
Natural gas forced-air furnace. The most common system in Toronto, Brampton and Mississauga houses. High-efficiency models are rated around 95 per cent or better. A typical furnace lasts 15 to 20 years.
Air source heat pump. Heats in winter and cools in summer by moving heat rather than burning fuel. Cold-climate models work well into GTA winter temperatures, and many homes pair one with a gas furnace as backup, which is called a hybrid or dual-fuel system.
Ground source (geothermal) heat pump. Very efficient but expensive to install because of drilling or trenching. More common in rural Caledon and larger lots than in the city.
Electric baseboard. Found in some older condos and basement units. Cheap to install, costly to run.
Boiler with radiators. Common in older Toronto homes and many condo towers. Comfortable, quiet heat, but no built-in air conditioning.
Rebates available in 2026
Ontario’s Home Renovation Savings Program, run by Save on Energy with Enbridge Gas, offers rebates such as:
- Cold-climate air source heat pump: up to $7,500
- Ground source heat pump: up to $12,000
- Attic insulation: $1,250, and up to $7,700 for insulation as part of a bundle with a home energy assessment
- Windows and doors: $100 per opening, as part of a bundle
- Smart thermostat: $100
Heat pumps must be on the Natural Resources Canada qualified list, and some rebates require a home energy assessment before and after. Check the program site for current terms before you sign with a contractor.
Rent or own the equipment?
Many GTA homes have a rented furnace, air conditioner or water heater. Rental contracts can run 10 to 15 years with rising monthly payments and a buyout cost. If you are buying, ask for the contract. If you are selling, check whether the buyer must assume it or you must pay it out. Your lawyer should also check for a notice of security interest registered against the home.
Lower your heating bill without replacing anything
- Change the furnace filter every one to three months.
- Seal gaps around windows, doors and the attic hatch.
- Add attic insulation; many older GTA homes are well below today’s standard.
- Use a smart thermostat to drop the temperature overnight and when you are out.
- Have the furnace serviced every fall.
What buyers should ask
How old is the furnace and air conditioner, when were they last serviced, are they owned or rented, and what did heating cost last winter? A system near 20 years old should be part of your price negotiation. Add it to your inspection checklist.
Planning upgrades before selling? See which home improvements pay back. HomeLife Landmark Realty Inc., Brokerage.
Rebate amounts from the Save on Energy Home Renovation Savings Program, checked September 2026. Programs change; confirm before you buy equipment.