Drano,
having lived in Ontario for most of my life & worked in the building industry I can tell you that a little will go a long way. I see that you are going to be insulating and that's great! Just remember to also install a vapour barrier too. I would also do the following:
- caulk all around the windows & doors to seal up all those cracks/gaps around the framing.
- Install weather stripping all around the building, including the door(s), windows and the sides and the bottom of the garage door.
- Insulate your garage door, if it isn't already. I assume that you have a regular garage door that is just steel or wood. Either way, the R value is horrible. If it's steel, it should have channels that you can pre-cut rigid insulation to fit & slide it in. If it's wood, it won't have these channels, so you would have to use something like liquid nails to fasten the insulation to the door. You can also get those Garage Door Insulation Kits, but I think those are only good for the steel door type and I would not recommend that if you are always opening and closing your garage door. The batt insulation is really heavy and it will be a lot harder to open and close your door.... plus on the negative side since the insulation is heavy they will eventually fall out of the channels when your door is open. If the door is closed all the time, it's not a bad option. If you really want to go all out you can buy a new insulated garage door, but that's pretty pricey!
- As far as heating is concerned, you have a few options. You can install a wood burning stove, but it would require some sort of exhaust (either side or roof). Problem is there would be a lot of dust/soot, not that great if you are putting pins in. Second option would be to install a ceiling mounted heating device, although those can be expensive. I think your best bet, would be one of those AC/Heating units you mentioned in your post... they have a temperature setting on them now so you don't have to worry about remembering to turn them on/off. If you make sure that everything is insulated & all the cracks and gaps are sealed/caulked the unit won't need to work that hard (especially with such a small space) that you can easily keep that place around 17-20 degrees C all year round.
Nice thing is that you don't need a building permit to do all these upgrades. Hope that helps!
*Edit: I forgot to mention that you can always use spray foam to seal up any gaps too. Just remember not to seal up those weep holes on the exterior brick! (The bottom course has gaps between the brick to allow for water drainage). That is of course assuming that the exterior facade is brick.