Should You Repair a Hot Water Heater? Cost, Risks & Decision Guide

When a Hot water heater is a tank or tank‑less appliance that heats water for household use starts leaking, makes strange noises, or stops delivering hot water, the first question is almost always the same: hot water heater repair worth it?

Typical signs that a repair may be needed

• Water pooling around the unit
• Rusted or discolored water
• Strange grinding or popping sounds
• Insufficient hot water during a shower
• Visible corrosion on the tank exterior

These symptoms can stem from a handful of common failures. Understanding the root cause helps you weigh repair costs against a full replacement.

Common failures and their average repair costs (2025 Canada)

• Anode rod corrosion - $120-$200
• Failed Thermostat controls the heating element or burner - $150-$250
• Broken Dip tube carries cold water to the bottom of the tank - $180-$300
• Leaking Tank the steel container that holds heated water - $400-$800 (often a replacement)
• Gas burner or electric heating element failure - $200-$400

Repair vs. Replace: A cost‑benefit snapshot

Numbers above include labor, parts, and disposal fees for the typical Toronto market. They also factor in the Ontario building code requirement to replace a tank that has leaked onto the floor.

Energy efficiency and long‑term savings

Newer models, especially Tankless water heater heats water on demand without storing it in a tank, can be 20‑30% more efficient than units installed before 2015. If your existing heater is older than 10 years, a replacement often pays for itself within 3‑5 years via lower utility bills.

For Gas water heater uses natural gas or propane to heat water, the efficiency gain is modest (about 5‑10%). An Electric water heater relies on electric resistance elements can see up to 15% savings if you switch to a high‑efficiency heat‑pump model.

When a repair makes sense

• Age under 8‑10 years: Most components are still within their design life.
• Problem is isolated: Replacing a single part like an anode rod or thermostat is inexpensive.
• Energy bills are stable: No major inefficiency indicators.
• Budget constraints: A quick fix can buy you months while you plan for a future upgrade.

When replacement is the smarter move

• Unit is older than 12‑15 years-most manufacturers guarantee 10‑12 years of service.
• Multiple components are failing simultaneously (e.g., tank corrosion plus heating element).
• Frequent leaks or rust‑stained water-indicates internal degradation.
• Current model is low‑efficiency and your utility rates have risen sharply.
• Local code changes require higher safety standards (Ontario’s 2024 amendment mandates seismic bracing for gas‑burner units in high‑rise condos).

Decision checklist - repair or replace?

1. Check the manufacture date (usually stamped on the tank). If it’s over 12 years, lean toward replacement.
2. Identify the fault. Is it a single component (anode rod, thermostat, dip tube) or a structural issue (tank leak, severe corrosion)?
3. Get at least three quotes from licensed Toronto plumbers. Compare part‑cost vs. full‑unit cost.
4. Calculate potential energy savings if you were to install a high‑efficiency model. Use Natural Resources Canada’s calculator for an estimate.
5. Factor in disposal fees and any required permits under the Ontario Building Code sets safety and installation standards for residential appliances.
6. Make a decision based on total cost of ownership over the next 5‑10 years, not just the immediate out‑of‑pocket amount.

DIY safety & maintenance tips (if you opt to repair)

• Turn off the power (circuit breaker for electric) or gas supply before any work.
• Drain the tank completely to avoid water damage.
• Wear heavy‑duty gloves and safety glasses; metal parts can be sharp.
• Replace the Anode rod sacrificial metal that prevents tank corrosion every 2‑3 years in hard‑water areas like Toronto.
• Inspect the Thermostat controls water temperature for proper calibration; set it to 120°F (49°C) for safety and efficiency.
• Flush the tank annually to remove sediment buildup, which can cause overheating and premature failure.

Finding a reliable professional in Toronto

Look for contractors who hold a valid Gas Technician (G2) license for gas‑fuel units, or an Electrical Safety Authority (ESA) certification for electric heaters. Check reviews on the Better Business Bureau, and ask for a written estimate that breaks down labor, parts, and disposal.

Bottom line

If your heater is less than a decade old and the problem is isolated, a repair is often the most cost‑effective choice. When the unit shows multiple signs of age or inefficiency, replacement-preferably with a high‑efficiency or tankless model-saves money and headaches in the long run.