Home Home Improvement What You Need to Know About Financing for HVAC Replacement: A Guide

What You Need to Know About Financing for HVAC Replacement: A Guide

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Financing for HVAC replacement may be your only way to afford a new unit when yours goes out, and you don’t have the thousands of dollars on-hand that it could potentially cost. Scratch that, would potentially cost!

One CBC report notes central heating and air in Canada runs anywhere from $5,000 to the “five figures.” Yikes! In this article, we help you explore your options for how to make this cost more palatable.

Financing Through Manufacturers

Using a manufacturer for HVAC financing is a low-interest way to get the cash you need for what can be an expensive purchase. Many Canadians struggle with the cost of installing a new unit. They require financing as a result but may not qualify for the best rates from banks.

Manufacturer financing options occur through a partnership between the manufacturer and the financing company. This enables companies to provide their product upfront at a more favorable rate with some even offering a no credit check HVAC financing option.

Zero Percent

HVAC financing companies that offer zero percent interest typically do so for a limited period of time. If you can’t pay the unit off completely during the zero-percent period, then you end up paying a higher-interest rate for the duration.

Other companies might price in the interest to the purchase price when offering longer zero-percent terms. You end up paying the interest as a result, even if the semantics say otherwise.

Credit Card Payments

One way you might not want to consider when it’s time to finance an HVAC system is putting it on a credit card. You’re usually better off going with a manufacturer-based loan or the zero-percent option.

That’s because this option comes at a hefty premium. Rates can go 15 percent or higher depending on your credit score. Proceed with caution when using a credit card for a big purchase of any kind.


Searching for “HVAC financing near me”? Start with some local or online banks willing to offer home equity lines of credit (HELOCs) on your home.

HELOCs allow you to draw money on the home equity you’ve built up at a much better rate than a credit card. Many times, they’ll even issue you a credit card that allows you to make purchases directly.

You only use what you need instead of obligating yourself to an installment loan. And if you do run into unexpected financial expenses for a month or two, the minimum payment won’t break you.

Partial Financing

Partial financing is something to consider when you have an emergency fund but don’t wish to spend it all outright. This can get you better interest rates and payment terms because your upfront payment instills confidence in the lender.

Home Refinancing

Home refinancing is a good way to secure a better rate when rates dip below what your current mortgage is. Refinance the remaining balance for better terms or the original amount and use the cash to pay for the HVAC installation. This can make the purchase relatively “painless,” but you end up paying a lot more for the HVAC unit over time as it is absorbed with the new payment.

Financing for HVAC Replacement Options Are Plentiful

Financing for HVAC replacement options should teach you one thing above all else. You won’t have to go without. A comfortable living space is always there, and there is always a way to pay for it.

Before you decide on the best way for you, reexamine all the options we’ve presented above. See what works best for you. For more home improvement solutions, check out some of our additional posts!

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