Door-to-door furnace and water heater contracts in Ontario: what is banned and how to get out

Some of the most expensive mistakes homeowners make never involve a renovation crew. They start with a knock on the door: a 'government rebate' check, a 'free' furnace inspection, or a water heater rental that is supposedly cheaper than the one you have. The contract signed that evening can run for years and cost far more than buying the equipment outright.

Ontario changed the rules for exactly these products on March 1, 2018. For a defined list of home equipment and services, a business can no longer make a contract with you at your home unless you started the contact. Contracts made in breach of the rule are void, and you can keep what was installed without paying for it.

Which products are covered

The Government of Ontario lists these restricted goods and services: furnaces, air conditioners, air cleaners, air purifiers, water heaters, water treatment devices, water purifiers, water filters, water softeners and duct cleaning services. The rule also covers any product or service that performs one or more of those functions, for example a combined HVAC system. Renting, leasing and buying are all covered when the contract is made at your home.

When a business may sign a contract at your home

Only when you initiated the transaction. The government's example is a consumer who called or emailed the business and asked it to come to the home to enter into a contract. A business that already has a written contract with you may visit for any reason, but before the visit it must ask whether it may make an offer, and you must agree to hear it. A technician who comes to repair or service your equipment cannot sign you to a new agreement for these products during that visit unless one of those exceptions applies. Leaving a flyer is allowed; signing you up on the doorstep is not.

If you invited them: the 10-day cooling-off period

When you did invite the business and signed a contract at home, you have a 10-day cooling-off period to cancel without a reason or penalty. The 10 days begin on the date you receive a written copy of the agreement, so keep the copy and note the date you got it. Cancel in writing and keep proof of when you sent it.

If they came uninvited: the contract is void

For a contract that resulted from unsolicited door-to-door marketing, or from misleading materials left at your home, the government says the contract is void and you can keep the products or services without any obligation. If you pay to have the equipment removed or returned, the business must reimburse those charges. Businesses that market these products illegally can face caution letters, compliance orders, charges and prosecution.

Liens on your title: notices of security interest

Many rental and financing companies used to register a notice of security interest (NOSI) on the homeowner's land title for a furnace or water heater, which could surface when the house was sold or refinanced. The Homeowner Protection Act, 2024, which became law on June 6, 2024, bans registering NOSIs for consumer goods such as furnaces, water heaters and air conditioners, and treats consumer NOSIs already on title as expired. The underlying contract still exists and can be enforced in court; only the registration on your title is affected. If an expired NOSI shows up during a sale or refinancing, a lawyer can apply to amend the register. Companies that offer to remove NOSIs for a fee are not necessary; the government asks people to report such approaches to police or the Canadian Anti-Fraud Centre.

Prevention Checklist

• Do not sign anything for a furnace, air conditioner, water heater, water treatment or duct cleaning at the door unless you called the business first.
• If you did invite them, write down the date you received your copy of the contract: the 10-day cooling-off period starts then.
• Cancel in writing and keep proof of the date you sent it.
• If the visit was unsolicited, the contract is void: keep the equipment and ask the business to pay any removal or return costs.
• Before buying or refinancing, check title documents for an old NOSI; a lawyer can remove an expired consumer NOSI.
• Report door-to-door pressure sales of these products to Consumer Protection Ontario.

References

1. Government of Ontario. Rules for businesses entering into contracts at a consumer's home, Web page, Restricted products; consumer-initiated contact; 10-day cooling-off; void contracts. Accessed 2026-11-01.
2. Government of Ontario. Notices of Security Interest, Web page, Homeowner Protection Act, 2024; existing consumer NOSIs treated as expired. Accessed 2026-11-01.

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