Heat Pump vs. Furnace in Canada: Which One Should You Choose?

Written by Fred B
Updated on
date Nov 24, 2025
Category Furnace

Heat Pump vs. Furnace

If you live in Canada, you know that a reliable heating system isn’t just a luxury—it’s a necessity. With winter temperatures often dropping well below freezing, choosing the right heating system for your home is one of the most important decisions you’ll make.

Two of the most popular options are heat pumps and furnaces, but which one is right for you? The answer depends on several factors, including your local climate, energy efficiency needs, and long-term reliability.

A heat pump is an energy-efficient system that heats your home in winter and cools it in summer, making it a great year-round option. On the other hand, a furnace is a powerhouse heating system that’s designed to handle even the harshest Canadian winters with ease.

Both systems have their strengths and drawbacks, and the right choice comes down to what works best for your home and comfort needs. In this guide, we’ll compare heat pumps and furnaces in terms of performance, efficiency, durability, and environmental impact to help you make an informed decision.

By the end, you’ll have a clear understanding of which system fits your lifestyle—and if you’re considering an upgrade, you’ll know exactly where to start.

Let’s dive in!

Understanding the Basics: What Are Heat Pumps and Furnaces?

When it comes to heating your home, the first step is understanding how heat pumps and furnaces work. While both serve the same purpose—keeping your home warm—they operate in very different ways.

What Is a Heat Pump and How Does It Work?

A heat pump is a heating and cooling system that doesn’t generate heat like a furnace. Instead, it works by moving heat from one place to another. In the winter, it pulls heat from the outside air (even in cold temperatures!) and transfers it inside to warm your home. In the summer, it reverses the process, acting like an air conditioner by removing heat from the inside and pushing it outdoors. Check out this blog to learn more about heat pumps.

  • Energy efficiency: Instead of burning fuel to create heat, a heat pump simply moves it, making it more efficient.
  • All-in-one system: Provides both heating in winter and cooling in summer.
  • Electric-powered: Runs on electricity, reducing dependence on fossil fuels.

Heat pumps work best in milder winter climates. In extreme cold, their efficiency drops, and they may need a backup heating source, like electric resistance heating or a gas furnace. Still, their overall benefits make heat pumps a popular choice for energy-efficient home comfort solutions.

Looking to install a heat pump? Our expert team offers professional heat pump installation to keep your home comfortable year-round.

What Is a Furnace and How Does It Work?

A furnace is the traditional heating system found in many Canadian homes. Unlike a heat pump, which transfers heat, a furnace creates heat by burning fuel (natural gas, propane, or oil) or using electricity. It then distributes warm air through ducts to heat your home.

  • Powerful heating: Furnaces provide strong, consistent warmth, even in sub-zero temperatures.
  • Ideal for harsh winters: Designed to handle extreme cold without efficiency loss.
  • Fuel-based options: Can run on natural gas, propane, oil, or electricity.

Check out our blog to explore different types of furnaces.

Since furnaces generate their own heat, they’re often the go-to choice for regions with long, freezing winters where heat pumps might struggle.

Need a furnace installed? Our certified HVAC technicians provide expert furnace installation to ensure your home stays warm all winter.

Performance in Canadian Winters: Which One Handles the Cold Better?

When temperatures drop below freezing, your heating system isn’t just about comfort—it’s about survival. In Canada’s harsh winters, choosing between a heat pump and a furnace comes down to how well they perform in extreme cold. Let’s break it down.

Can a Heat Pump Work in Extreme Cold?

The idea of pulling heat from the cold winter air might sound strange, but that’s exactly how a heat pump operates. Thanks to modern technology, today’s cold-climate heat pumps can function even in temperatures as low as -30°C. If you’re wondering whether this technology is practical in Canadian winters, here’s a closer look at whether heat pumps are worth it in Canada.

  • Mild to moderate winter? A heat pump can handle it with ease.
  • Extreme cold? Efficiency drops and a backup heating source may be needed.
  • All-season use: Provides cooling in summer and heating in winter, making it a versatile option.

However, if you live in regions where winter temperatures regularly hit -25°C or lower, a heat pump may struggle to keep up, forcing it to work harder and use more energy. Many homeowners in colder areas pair a heat pump with a furnace (hybrid system) for the best of both worlds.

Why Furnaces Are More Reliable in Harsh Winters

If you live in a place where winter means weeks of bone-chilling temperatures, a furnace is the clear winner. Unlike a heat pump, a furnace doesn’t depend on outdoor temperatures—it generates its own heat using natural gas, propane, or electricity.

  • Powerful and reliable heating, even in -30°C or colder.
  • No efficiency loss due to extreme cold.
  • Works well for larger homes needing high heat output.

Hybrid Systems: Combining a Heat Pump and Furnace

Can’t decide? Many homeowners are now choosing a hybrid system, which combines the efficiency of a heat pump with the reliability of a furnace.

  • Mild days: The heat pump runs efficiently, keeping energy costs low.
  • Extreme cold: The furnace automatically kicks in when the heat pump struggles.
  • Year-round comfort: Heat pump cools in summer, furnace heats in winter.

This setup optimizes efficiency and performance without forcing your system to work overtime in extreme conditions.

Energy Efficiency & Environmental Impact

Energy efficiency is a big deal when it comes to heating your home—especially in Canada, where winter lasts for months. A more efficient system means lower energy bills and a smaller environmental footprint. But how do heat pumps and furnaces compare when it comes to efficiency and eco-friendliness? Let’s break it down.

Heat Pumps and Energy Efficiency

If saving energy is your top priority, a heat pump is one of the most efficient heating options available. Instead of burning fuel to generate heat, it simply moves heat from the outside air into your home—even in cold weather.

  • Uses electricity, not gas or oil
  • Transfers heat instead of generating it, making it up to 300% efficient
  • Reduces overall energy consumption, which lowers utility bills

However, efficiency can drop in extremely cold temperatures (below -25°C), causing the heat pump to work harder. This is why some homeowners pair a heat pump with a furnace (hybrid system) for maximum efficiency.

Thinking about switching from a furnace to a heat pump? Our team offers expert heat pump installation to help you save energy year-round.

Are Furnaces Less Efficient?

Furnaces operate differently—they generate heat by burning fuel (natural gas, propane, or oil) or using electricity. While they aren’t as efficient as heat pumps, modern high-efficiency furnaces (90%+ AFUE) are still a solid choice for Canadian winters.

  • Gas furnaces convert up to 98% of fuel into heat with high-efficiency models
  • No loss of performance in extreme cold—always reliable
  • More efficient than old, outdated furnace models

If you live in a region with harsh, long winters, a high-efficiency furnace can still be a cost-effective and dependable heating option.

Which One Is More Eco-Friendly?

When it comes to environmental impact, heat pumps are the greener choice. They run on electricity and don’t burn fossil fuels, which means:

  • Lower carbon emissions compared to gas furnaces
  • More eco-friendly when paired with renewable energy sources (solar, hydro, wind)
  • Helps homeowners reduce their carbon footprint

Furnaces, on the other hand, burn natural gas, propane, or oil, which releases carbon emissions into the atmosphere. While high-efficiency furnaces minimize waste, they still rely on fossil fuels.

If sustainability is a major factor in your decision, a heat pump is the clear winner. However, if you need a strong heating source in extreme cold, a high-efficiency gas furnace is the next best option.

Maintenance & Lifespan: Which One Lasts Longer?

When investing in a heating system, you want something that’s not only reliable but also long-lasting. After all, no one wants to deal with constant repairs or an early breakdown, especially in the middle of a Canadian winter. So, how do heat pumps and furnaces stack up when it comes to maintenance and lifespan? Let’s dive in.

Heat Pump Lifespan & Maintenance

A heat pump can last you around 10 to 15 years on average, but its longevity heavily depends on proper care and regular maintenance. Since it works year-round (heating in winter, cooling in summer), it works harder than a furnace and might require more frequent servicing.

Routine Maintenance:

  • Clean or replace filters regularly to maintain airflow and efficiency.
  • Check the refrigerant levels to ensure the system is working optimally.
  • Annual servicing by a professional to clean the coils and check the overall performance.

With proper care, a heat pump can serve your home for over a decade, but neglecting maintenance can lead to early failures or reduced efficiency. Regular heat pump tuneups keep it running smoothly and help you avoid costly repairs down the road.

Furnace Lifespan & Maintenance

Furnaces tend to last longer than heat pumps, typically ranging from 15 to 20 years, sometimes even longer if well-maintained. Since furnaces only work during the winter months, they generally experience less wear and tear compared to heat pumps. However, like any system, furnaces still require regular maintenance to ensure a long lifespan.

Routine Maintenance:

  • Replace filters every 1-3 months during the heating season to maintain air quality and efficiency.
  • Annual inspections by a professional to ensure everything is running smoothly and to catch potential issues before they become costly problems.
  • Clean the burner assembly and check for gas leaks to keep your furnace safe and efficient.

Common Issues & Repairs

No system is perfect, and both heat pumps and furnaces may encounter some issues over time. Here are a few common problems to keep an eye out for:

Heat Pump Issues:

  • Refrigerant leaks, which can make the heat pump less effective.
  • Frozen coils, especially in extremely cold weather, which can affect performance.
  • Compressor failure is a more serious issue that may require costly repair.

Furnace Issues:

  • Clogged filters, can reduce airflow and make the furnace work harder.
  • Ignition or pilot light issues, especially in older gas furnaces, require repairs.
  • Faulty blower motors can cause uneven heating or system failure.

Routine maintenance and timely repairs can prevent these issues from becoming major problems, keeping your system running smoothly for longer.

Heat Pump or Furnace – Which One Is Right for You?

By now, you’ve learned that both heat pumps and furnaces have their strengths—and each is better suited to different needs. But when it comes down to making a decision, the right choice depends on a few key factors specific to your home, location, and comfort needs.

Heat Pumps are energy-efficient, eco-friendly, and ideal for moderate Canadian winters. They provide heating and cooling, making them a great option for homes in areas where winters are milder. They’re especially perfect if you want to lower your carbon footprint and reduce energy costs.

Furnaces, on the other hand, are built for extreme cold and provide consistent, reliable warmth even in the harshest winter temperatures. If you live in northern regions or areas where the winter temperature regularly dips below -25°C, a furnace is the most dependable option for your home.

Still need help deciding? Our HVAC experts are here to guide you through the process and help you choose the best system for your home’s needs. Whether you’re leaning toward a heat pump or a furnace, we can ensure a professional HVAC installation that’s done right the first time.

Ready to make your home more comfortable? Contact us today to schedule an in-home consultation and explore your heating options!

Fred B

Fred B. is the CEO and Founder of Infiniti Home Comfort, bringing over 15 years of experience in the HVAC industry. He’s passionate about helping homeowners get the most out of their heating and cooling systems, and regularly shares practical insights to improve comfort, efficiency, and air quality at home.

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