Furnace Financing: Should You Buy Or Finance A Furnace?

Nov 30, 2021 | Home Tips | 0 comments

It’s the middle of winter and your furnace is working overtime. Suddenly, that gentle hum in the background stops, and your house is getting cold. What do you do? Will you buy a new furnace or opt for financing a furnace?

Each option has its benefits and drawbacks. But, when it’s cold outside and your furnace is out of commission, it’s a choice you need to make quickly.

To help you make an informed decision, whether you’re in immediate need of a new heating system or are planning for a future furnace replacement, here are the pros and cons of purchasing and financing.

Buying a furnace

One option is to buy a new furnace. When you own your furnace, there are other considerations and benefits you should consider. Here’s what you need to know about purchasing a furnace.

Pros

  • BC Hydro offers rebates for energy-efficient home renovations and heating solutions. Depending on the type of furnace you buy, you may be eligible to receive rebates that make purchasing a more attainable option.
  • Purchasing a furnace increases the value of your home. When you own your furnace and sell your home, you don’t have to worry about transferring a rental agreement or buying out your furnace rental contract.

Cons

  • There is a significant upfront cost to purchasing a furnace.
  • You are responsible for all maintenance and service costs.

Financing a furnace

The other option is financing a furnace. For many, purchasing a new furnace out of pocket isn’t an option. Thankfully, financing can be a great and affordable way to stay warm this winter. Here’s everything you need to know about furnace financing.

Pros

  • There is no upfront cost to financing. Instead, you just pay a monthly fee.
  • Low monthly payments. Get an interest rate of 9.90% for non-deferred loans.
  • Applying for financing is a quick and easy process. We partner with SNAP Home Finance where you can easily apply for financing.
  • If you choose a deferred loan, you have the option of 3, 6, 9, or 12 months with no payments, interests, or fees on approved credit. 

Cons

  • While there’s no initial cost, the total cost over time can be higher depending on the interest rate and loan type.
  • If you’re financing a furnace and intend to sell your home, you either need to transfer the financing agreement to the new homeowner or buy out the furnace before you sell.

Need a new furnace and want to learn more about our furnace financing options? Reach out to us at 1-866-429-1601 or contact us online.