There are companies in Ontario offering a rental plan for a furnace, air conditioning, and water heater ETC.. Remember a deal maybe not such a deal once you do the real numbers. The payments appear low, but can end up costing you many thousands of dollars more than you had budgeted. Please see the scenario below:

Furnace water heater

– I based my numbers on a 2500 square foot home with very few modifications to the infrastructure of the home when installing the new equipment.
-A high efficiency natural gas furnace can cost between $4,000 – $8,000. A new high efficiency air conditioning system can cost between $3000 to $5000. A new gas water heater can range from about $800 to $1,200. So a complete equipment replacement budget would be $8,000 or so.
-A monthly rental contract that could be offered is generally 7 years or 84 months in length. The payments will range from $150 at the low end to $200 per month.Please note in many cases the interest charged on these contracts can be higher than your credit card. Over the life of the contract that’s between $12,600 – $16,800.
-Most if not all of these contracts are non-transferable to the buyer if you sell your house, they must be paid off in full.
-Most if not all of these contracts contain a penalty clause that would accelerate the payments to assure you pay for the total contract with interest. This means that if you sell your home, you must pay out on all of the payments. You will have to  to pay around $15,000 for your $7,800 in systems that will run your home. Yes ouch! This can be a deal killer.
If you need to replace equipment or fixtures in your home, and cash flow is an issue; arrange for a line of credit from your bank. The interest rate is lower, and you can pay it off at any time. At the very least shop around.

Don’t be pressured! Make a well informed decision. If you need more information, or would like a referral to a trusted source of information, let me know. I have worked with numerous trust worthy contractors “who do what they say they will do”


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