HAUSE HOME NETWORKinfo@hause.ca403-679-3100
HAUSEHOT WATER
Checklist

Choosing a water heater: a 12-step checklist for Canadian homes

Choosing a water heater in Canada: a 12-step checklist covering fuel, venting, size, efficiency, space, water, outages, rebates, permits and quotes.

Short answer

To choose a water heater, start with what you have and what your house allows: fuel, venting path, space and electrical capacity. Then size it by your busiest hour, compare lifetime running cost rather than purchase price, check water hardness, outage resilience and rebates, and finish with permits and like-for-like quotes. Natural Resources Canada's advice is to plan before the old tank fails.

Key takeaways
  • The best choice is usually decided by constraints first: fuel available, venting path, space, drain and electrical capacity.
  • Size by first-hour rating or winter flow, never by gallons alone.
  • Operating cost over 10–15 years usually outweighs the purchase price; compare with your own energy prices.
  • Heat pump water heaters are the most efficient; gas tankless the most compact; atmospheric gas tanks the most outage-tolerant.
  • Get quotes that name the model, first-hour rating, venting, expansion control, permit and removal.
Inside a gas hot water tankA cutaway of a gas storage water heater: cold water enters through the dip tube to the bottom, the burner heats the tank from below while hot flue gases rise through the central flue with a baffle, hot water leaves from the top, an anode rod protects the steel tank, and the T&P valve relieves excess temperature or pressure. COLD IN + DIP TUBEHOT OUT T&P VALVE+ DISCHARGE PIPE ANODE ROD GAS CONTROL+ THERMOSTAT BURNER + PILOT / IGNITER DRAFT HOOD → VENTFLUE + BAFFLE DRAIN VALVE GAS STORAGE WATER HEATER · CUTAWAY
Fig. 1Inside a gas hot water tank: burner, flue baffle, dip tube, anode and T&P valve.

01 /What should you decide before choosing a water heater?

Decide on timing and constraints before comparing products. Natural Resources Canada's Water Heater Guide recommends that if your water heater is approaching the end of its expected service life, you research your options now, and it reminds buyers to consider the second price tag: operating costs will be greater than the purchase or rental price. A planned replacement lets you weigh a heat pump, a tankless unit or a different size; an emergency replacement usually means the same thing again.

Work through the twelve steps below in order. Each one either narrows the field or changes the size and cost of what remains.

02 /Steps 1–4: What does your house already have?

  1. 1. Read your current heater's label

    Note the fuel (natural gas, propane, electric), size, venting type (chimney with a draft hood, power vent fan, sealed direct vent), input rating and manufacture date. Open the Tank Explorer if you are unsure which parts you are looking at.

  2. 2. Check its age and condition

    Compare its age with typical service life using the Tank Lifespan Predictor. Signs such as rusty hot water or moisture at the base mean plan now; see signs your water heater is failing.

  3. 3. List the fuels and capacity available

    Is there a gas line to the mechanical room, and could it carry a larger tankless load? Is there a spare 240 V circuit or room in the electrical panel for one?

  4. 4. Map the venting path

    Does the chimney still serve the furnace, or is the water heater alone on it after a furnace upgrade? Is there an outside wall nearby for a sidewall vent? The venting and backdraft guide explains why an orphaned heater on an oversized chimney needs attention.

Inside a gas hot water tankA cutaway of a gas storage water heater: cold water enters through the dip tube to the bottom, the burner heats the tank from below while hot flue gases rise through the central flue with a baffle, hot water leaves from the top, an anode rod protects the steel tank, and the T&P valve relieves excess temperature or pressure. COLD IN + DIP TUBEHOT OUT T&P VALVE+ DISCHARGE PIPE ANODE ROD GAS CONTROL+ THERMOSTAT BURNER + PILOT / IGNITER DRAFT HOOD → VENTFLUE + BAFFLE DRAIN VALVE GAS STORAGE WATER HEATER · CUTAWAY
Fig. 2Know what you have: the draft hood and flue identify a conventional gas tank; a fan on top means power vent; a sealed vent to the wall means direct vent; no burner or vent means electric or heat pump.

03 /Steps 5–8: What do you need it to do?

  1. 5. Size it

    Estimate your busiest hour and match it to first-hour rating, or add up simultaneous flow for tankless. The Water Heater Size Calculator does both; the what size water heater guide explains the method.

  2. 6. Check the space

    Heat pump water heaters need room air or ducting, head room and a condensate drain. Tankless units need a wall near a vent route. Tanks need floor space near a drain, and a drain pan over wood floors.

  3. 7. Compare lifetime running cost

    Use the Energy Cost Comparer with your own all-in gas and electricity prices. The gap between technologies is often larger than the gap in purchase price.

  4. 8. Check your water

    Hard water scales tankless heat exchangers and speeds sediment build-up in tanks; softened water can eat anodes faster. See anode rods and flushing a tank.

Representative UEF and example annual cost, 240 L/day (from the Energy Cost Comparer, example prices $8/GJ gas and 20¢/kWh)
TechnologyRepresentative UEFExample cost per year
Atmospheric gas tank0.62about $227
Power vent gas tank0.66about $213
Condensing gas tank0.85about $166
Gas tankless0.93about $151
Electric tank0.92about $1,063
Heat pump (heated space)3.0about $326

04 /Steps 9–12: What rules, money and paperwork apply?

  1. 9. Decide how much outage resilience you want

    Many atmospheric gas tanks with a standing pilot keep heating during a power outage. Power vent, direct vent with a fan, tankless, electric and heat pump units do not. Natural Resources Canada's guide lists this among the trade-offs.

  2. 10. Check rebates and financing

    Heat pump water heaters attract most incentives; see water heater rebates in Canada. Confirm model and contractor rules before you buy.

  3. 11. Check permits and who may do the work

    Gas work needs a permit and a qualified gas fitter in most of Canada; rules vary. See permits and code.

  4. 12. Decide rent or buy, then get quotes

    If you rent now, read your buyout terms first and compare with the Rent or Buy Calculator. Then get written quotes for the same scope; the installation guide lists what they should include.

05 /Which water heater fits which Canadian household?

Once constraints are known, most households land in one of a handful of patterns. Use this as a sense check, not a verdict.

Common scenarios and the options that usually fit
ScenarioUsually fitsWatch out for
Gas-heated house, chimney shared with a mid-efficiency furnace, tank failedLike-for-like atmospheric gas tankChimney condition; permit; CO alarm
Furnace upgraded to condensing, water heater now alone on the chimneyPower vent or direct vent tank, or a liner for the chimneySidewall termination clearances and snow
All-electric home with a warm basementHeat pump water heaterDrain, space, noise, 240 V circuit
Small home or condo, hydronic heatCombi boiler or indirect tankFlow limits in winter; see combi and indirect
Tight mechanical room, long-term owner, soft to moderate waterCondensing gas tanklessGas line size, descaling, power needed
Big family, frequent simultaneous showersLarger gas tank or high-input tanklessFirst-hour rating vs winter flow
Rented tank in Ontario near end of lifeCheck buyout, then compare buying newContract terms; see rental vs buy

If two options remain close, let the tie-breakers be the ones you will live with every day: hot water during outages, noise in the space, and how much routine maintenance you will really do. The types of water heaters and gas vs electric guides go deeper on each technology.

06 /What should the final quote comparison look like?

A fair comparison puts each quote's scope side by side so that price differences can be explained. Natural Resources Canada's Water Heater Guide recommends firm, written bids from several companies and a written contract before work begins, including the manufacturer, model and capacity, warranty details, venting and inspection details, extra parts, removal of the old heater, total cost with taxes, payment method and dates.

Quote comparison sheet
LineQuote AQuote BQuote C
Model, fuel, first-hour rating or flow
UEF and ENERGY STAR status
Venting: reuse, reline or new sidewall
Gas line or electrical work
Expansion control and T&P discharge
Permit and inspection included
Removal of old heater
Tank warranty and labour warranty
Rebate eligibility confirmed
Total with tax

Then ask each installer the same short set of questions. The answers often explain a price gap better than the totals do:

  1. Who pulls the permit, and is the fee included?
  2. Will you check the chimney or vent and the draft after installation?
  3. Is the system closed, and how will you control thermal expansion?
  4. What first-hour rating or winter flow will this model deliver for my household?
  5. What maintenance does this model need, and how often?
  6. What does your labour warranty cover, and for how long?
  7. Does this model and your company meet the rebate program's rules?

Be wary of a quote that names no model, leaves out the permit, reuses an old or undersized T&P discharge pipe without comment, or pushes a larger tank without asking how your household uses hot water. Copy those lines into your notes and fill them in as quotes arrive. When you are ready, the quote request lets you describe your current heater and preferred options once, so installers price the same job.

FAQQuestions people ask

What type of water heater is best for a Canadian home?

There is no single best type. Heat pump water heaters are the most efficient, condensing gas tankless units are compact and efficient, and atmospheric gas tanks are the cheapest to replace and often work during outages. Your fuel, venting, space and energy prices decide.

What water heater lasts the longest?

Using the editorial planning ranges in the Tank Lifespan Predictor, tankless units last about 15 to 20 years, electric and heat pump tanks 10 to 15, and gas tanks 8 to 12. Water quality and maintenance shift those ranges.

Should I replace my water heater with the same type?

It is the fastest and usually cheapest option, but Natural Resources Canada suggests considering whether a more efficient choice suits your household before simply replacing like for like.

When is the best time to replace a water heater?

Before it fails, ideally when it nears the end of its expected life. That leaves time to size it properly, compare options, confirm rebates and book a permitted installation.

Do I need a gas fitter to replace a gas water heater?

In most of Canada, yes, and a permit. B.C. allows eligible homeowners to get a homeowner gas permit. Check your province's rules.

Request quotes

Describe the problem once. Get a straight answer.

Tell us what you are seeing — when it happens, where, the age of the house and anything you have already been told or quoted. The HAUSE Home desk replies with next steps and, where available, a local contractor for the job.

Smell gas or hear a CO alarm? Leave the building and contact the gas utility or emergency services from a safe place. Keep away from wet electrical equipment. This request form is not an emergency dispatch line.

Tell us about the job

Free request. We read every one and reply by email or phone.

HAUSE Home is an independent network, not a contractor. See our privacy notice.

The HAUSE Home network

Focused home portals from HAUSE.