Rent or own your hvac equipment in toronto?

Rent vs. Owning a Furnace and Air Conditioner in Toronto

Rent vs. Owning a Furnace and Air Conditioner in Toronto

Toronto homeowners have an essential decision to make when it comes to heating and cooling their homes: should they rent or buy their furnace and air conditioner? Many might find the convenience of monthly rental fees attractive, especially with the promise of hassle-free maintenance and repairs. However, when we dive into the financials of both options, purchasing becomes the clear winner for long-term savings and benefits. In this article, we'll examine the costs and benefits of both scenarios.

The Financial Breakdown

To understand the financial implications, let's consider the average costs. On average, a furnace and air conditioner rental in Toronto can range from $50 to $100 or more per month. For our example, let's take the midpoint, which is $75 per month. In our experience, it's more likely on the high-end but let's take the conservitive midpoint just for comparison.


  • Monthly Fee: $75
  • Yearly Cost: $75 x 12 = $900
  • Over 10 years: $900 x 10 = $9,000

Now, let's compare this to purchasing a furnace and an air conditioner. A high-quality furnace and air conditioner combo might cost somewhere between $5,000 and $8,000 (really depending on the brand and efficiency you decide, sometimes a tad more), with the added costs of installation and maintenance.


  • Initial Cost (including installation): $7,000 (midpoint)
  • Maintenance (Yearly): ~$150
  • Over 10 years (including maintenance): $7,000 + ($150 x 10) = $8,500

Long-term Analysis

From the above breakdown, it's evident that over a decade, renting will cost homeowners approximately $9,000, while purchasing will amount to around $8,500. This is a savings of $500 over ten years, not taking into account potential rental fee increases over the years. But the real benefits of purchasing become evident when we look beyond a decade.

The lifespan of a well-maintained furnace and air conditioner can easily exceed 15 to 20 years. If we extrapolate our calculations further, the savings grow substantially:

  • Renting for 20 years: $900 x 20 = $18,000
  • Purchasing for 20 years (including maintenance): $7,000 + ($150 x 20) = $10,000

Over two decades, homeowners stand to save $8,000 by purchasing instead of renting.

Other Advantages of Owning

  1. Equity: Owning your furnace and air conditioner means they become assets to your home. Should you decide to sell your home, a new or well-maintained system can add value.
  2. Control: When you own your units, you have the final say in maintenance schedules, repair decisions, and upgrades.
  3. No Contract: Rental agreements often lock homeowners into long-term contracts with potential penalties for breaking or modifying the contract.


While renting a furnace and air conditioner in Toronto might seem convenient initially, the long-term financials heavily favour purchasing. Homeowners can save thousands over the lifespan of their units and enjoy the added benefits of equity, control, and freedom from binding contracts.

If you're considering making a change in your home heating and cooling systems, don't wait. Call 416-213-0303 for a free quote and consultation. Ensure you make a decision that benefits your home and pocket in the long run.