A new multidimensional artificially characteristic-based (MACB) scheme is presented for simulation of incompressible viscous flows with heat transfer. Multidimensional characteristic relations for energy propagation in incompressible flow are derived for the first time. According to the new scheme, two-dimensional flow with heat transfer in a square cavity and forced convection around a circular cylinder are solved for a wide range of Reynolds and Grashof numbers. It was found a remarkable faster convergence of MACB in comparison with conventional CB scheme. The computed results of MACB scheme are in good agreement with the benchmark solutions.