Renting vs. Buying a Furnace in Ontario: What Kingston Homeowners Need to Know

Every few winters, Keith and the team at ECM get the same call. A homeowner's furnace has quit in January, they need heat fast, and someone is at the door offering a brand new high-efficiency unit for just $69 a month. It sounds like a lifesaver. And sometimes, in the short term, it is. But depending on how long you plan to stay in your home, that $69 a month could end up costing you three to four times the price of simply buying a furnace outright. This guide breaks down what rental programs actually involve, where the risks live, and what tends to make more sense for Kingston-area homeowners over the long haul.

How Furnace Rental Programs Work in Ontario

The basic structure is straightforward. A company installs a new furnace at no upfront charge, and you pay a fixed monthly fee for the life of the contract. Terms typically run anywhere from 10 to 15 years. Most programs bundle in maintenance and repairs, so when something goes wrong, you're not reaching for your wallet. Monthly rates across Ontario generally fall somewhere between roughly $50 and $130 per month, depending on the furnace model, efficiency rating, and provider. Larger, higher-efficiency units tend to sit at the top of that range. The appeal is real. You get heat restored quickly, you know exactly what you're paying each month, and if the furnace breaks down, the rental company sends someone out. For certain situations, that arrangement makes genuine sense. But the numbers behind it tell a different story over time.

The True Cost of Renting Over Time

This is where most homeowners are caught off guard. Because the monthly payment feels manageable, it's easy to underestimate how much you're actually committing to. At $70 per month over a 15-year contract, you're looking at a total of roughly $12,600 before accounting for the annual rate increases that are built into most rental agreements. At $90 per month, the total reaches approximately $16,200. Ontario-based HVAC industry sources consistently estimate that the total cost of renting a furnace over a typical contract period lands somewhere between $10,800 and $16,200 or more, often two to four times what you would pay to own the equipment outright. Buying and installing a new high-efficiency furnace in Eastern Ontario typically costs somewhere in the range of $3,500 to $7,500, depending on the model, size of your home, and any additional work required. When you factor in routine maintenance and the occasional repair over 15 years, the total ownership cost still generally comes in between $5,000 and $9,000, well below what most rental agreements cost over the same period. And because rental rates include annual increases in many contracts, the gap tends to widen the longer you stay in your home.

The Hidden Risks in Ontario Rental Contracts

This is the part that doesn't get talked about enough, and it's something the team at ECM thinks every homeowner in Kingston, Belleville, Gananoque, and across Eastern Ontario should understand before signing anything. In Ontario, many furnace rental companies register what's called a Notice of Security Interest, commonly referred to as a NOSI, against your property title. This is a lien placed on your home to protect the rental company's interest in the equipment. The problem is that many homeowners have no idea this has happened until they go to sell or refinance. The Ontario Bar Association documented this practice in detail in 2022, noting that homeowners frequently discover these liens only when a lawyer pulls the title ahead of a sale. At that point, the rental or financing company issues a buyout demand that can run from several thousand dollars to tens of thousands, often far exceeding the actual market value of the equipment. The Ontario government moved to restrict the use of NOSIs for household goods in 2022, which provides some protection for newer agreements going forward. But if you signed an older contract or if you are purchasing a home with HVAC equipment already on a rental agreement, it is worth asking your real estate lawyer to search the title before you proceed. When evaluating any rental agreement, look for two things. First, confirm it is an open agreement, meaning you can buy out the equipment at any time without a penalty. Second, confirm it is transferable, meaning a future buyer can assume the contract if they choose to rather than forcing you to buy it out at the point of sale.

Even without a NOSI situation, rental contracts can create real complications in a home sale. Many buyers in Ontario simply don't want to take over a rental agreement. If a buyer declines, the seller has to buy out the contract to close the deal. Depending on the company and how many years are left on the term, that buyout could be a significant and unexpected cost arriving at the worst possible moment. Some real estate agents in Ontario now routinely advise buyers to make offers conditional on the seller removing any rental items from title, which places the full cost of the buyout on the seller. A furnace you own outright doesn't carry any of that complexity. It's part of the home's value, it adds to buyer confidence, and it keeps the transaction clean. You can learn more about what a new furnace installation looks like from our furnace repairs and replacements page.

When Renting Actually Makes Sense

In the interest of being straightforward, renting isn't always the wrong call. If your furnace fails in February and you have no savings and no immediate access to financing, a rental program gets heat back into your home the same day. That matters, and nobody here would tell you otherwise. Renting can also be a reasonable fit for landlords managing properties in another city who genuinely want hands-off maintenance coverage. And if you are highly confident you will sell your home within the next two to three years, and a buyer is willing to assume the contract, the financial downside is smaller than it would be over a full 15-year term. In any of these cases, the rule is the same: read the contract carefully, understand the buyout terms, and know exactly what you're agreeing to before you sign.

The Long-Term Case for Buying

For most homeowners in Kingston and the surrounding area who plan to stay in their home for five or more years, buying almost always works out to be the better financial decision. The upfront cost feels larger, but the total spend over the life of the equipment is substantially lower, and you end up owning an asset rather than paying indefinitely for equipment that never becomes yours. Ownership also gives you control over who services the system and when, which model goes in your home, and which contractor you trust with the work. There's no lien on your title, no annual rate increase, and no buyout calculation to manage when it comes time to sell. There is also the efficiency angle worth considering. Newer, high-efficiency furnaces can make a real difference on monthly heating bills through Eastern Ontario winters, and if you're open to exploring heat pump technology, the team at ECM can walk through how those systems work and what incentives are currently available. Our grants and rebates page has current information on programs that can help offset upfront costs significantly.

Financing: A Better Middle Ground Than Renting

For homeowners who want to own their equipment but need help managing the upfront cost, financing is almost always a stronger option than a long-term rental agreement. Many reputable HVAC contractors offer financing that spreads the cost of a new furnace over a defined period at a fixed rate. Unlike a rental, financing has a clear end date at which point you own the equipment outright. Your payments are predictable, there is no security interest registered against your title, and there's no buyout clause to navigate when you sell. Personal loans and lines of credit through your bank are also worth exploring before assuming that a rental program is the only accessible option.

The Bottom Line for Kingston Homeowners

The appeal of renting a furnace is real, particularly in a heating emergency when speed and simplicity matter most. But the total financial picture over any contract longer than a few years almost always favours ownership. The monthly payment may feel smaller, but the cumulative cost is substantially higher, and the contractual complexity that comes with many Ontario rental agreements adds a layer of risk that most homeowners don't anticipate until they're already in the middle of it.

Eastern Ontario winters are long, and your heating system deserves a decision made with the full picture in mind. Whether you're replacing an aging furnace, weighing your options after a breakdown, or thinking ahead, the team at ECM is happy to walk through what makes sense for your home and your budget without any pressure.

To get started, reach out to the team directly or take a look at the full range of home comfort services ECM offers across Kingston and Eastern Ontario.