Should You Repair or Replace Your Heat Pump?

The Industry's Uncomfortable Truth

Here's something most HVAC companies won't tell you: it's more profitable to sell you a new heat pump than to repair your existing one. A repair might bring in $200–$500. A replacement brings in $4,000–$7,000. That financial incentive shapes the advice many companies give.

At MacLeod Air, we've built our reputation on doing the opposite. More than a dozen of our reviews document the same pattern: a customer was told by another company that they needed a full replacement, and we fixed the actual problem for a fraction of the cost.

When Repair Is Usually the Right Choice

• Your unit is less than 15 years old. Most heat pumps can last 15–20+ years with proper maintenance. A 10-year-old unit with a failed capacitor is not a candidate for replacement.
• The problem is a single component. Capacitors, fan motors, TXV valves, and thermostats are common failure points that are relatively inexpensive to fix.
• This is the first significant issue. A first-time repair on an otherwise reliable system is almost always worth doing.
• The repair cost is less than 30–40% of replacement cost. If a repair runs $500–$1,000 and a new unit costs $4,000–$6,000, repair is the clear winner.
• Your system has been well-maintained. A maintained heat pump in good overall condition can have individual parts replaced and keep running reliably.

When Replacement Genuinely Makes Sense

• Your unit is 18–25+ years old. At this age, the compressor and other major components are nearing the end of their expected life.
• The compressor has failed. Compressor replacement is the most expensive repair — often costing $2,000–$3,500+ for parts and labour. On an older unit, this approaches the cost of a new system with a full warranty.
• You're experiencing repeated failures. If you're calling for repairs every few months, the cumulative cost starts to exceed replacement value.
• The unit uses R-22 refrigerant. R-22 has been phased out in Canada. If your system leaks and uses R-22, the refrigerant itself is extremely expensive, and you'll face this cost every time it leaks.
• Energy efficiency has dropped significantly. Newer heat pumps are substantially more efficient than models from 15–20 years ago. The energy savings can offset replacement costs over time.

The Decision Framework

Ask yourself three questions:

1. How old is the unit? Under 15 years → lean toward repair. Over 20 years → consider replacement.
2. What's the repair cost relative to replacement? Under 30% of replacement cost → repair. Over 50% → replacement.
3. How often have you needed repairs? First time or rare → repair. Frequent and escalating → replacement.

What We Recommend

Get an honest assessment. Not from a company that only sells new units, and not from a company that only does repairs. You need someone who does both and will tell you the truth about which option makes sense for your specific situation.

That's what we do. Call us at 647-622-4123 or request a free estimate, and we'll give you a straight answer.