Tips for nailing a home reno this year

At the beginning of the pandemic, when everyone was on lockdown, the desire to spruce up your home was hard to ignore. Many embraced the idea of taking on a non-essential reno project for the sake of aesthetics or simply to keep busy. By fall of 2021, a survey found that 27% of Canadians had renovated their homes since March 2020, and 20% planned to do so in the “near future.” 

That reno itch hasn’t gone away in 2022. A recent Scotiabank survey found that 59% of homeowners plan to stay put and renovate their homes this year—up from the 56% who said the same at the peak of the pandemic in 2020. And, of the 60% of Canadians who expect to get a tax refund this year (in the average amount of $2,400), 9% say they have renos in mind for that money. To put that in perspective: only 14% of travel-starved Canadians say they plan to put those funds towards travel. 

We’re as eager as anyone to get those remodels going. But before you put a hammer to drywall or break ground on this year’s dream reno, you’ll want to read our guide. It includes the most-read MoneySense reno stories—including a few tips for renters, too—from planning your project through to financing it. 

The paperwork you need for a home reno

You may not trust even your handiest relative to see your kitchen reno through to completion, and you may not be into the whole DIY thing either, and that’s alright. That’s what contractors are for. If you decide to hire a professional to help you with your renovation, you’ll want to read the fine print—before any walls start coming down. 

The professional you hire should provide a contract for you to sign. It should be thorough, answering the following key questions: 

• What work is the contractor going to perform, and in what order? 
• What are they getting paid? 
• What if they encounter delays? 

In other words: A single-paragraph contract is likely not detailed enough. If ever you’re not sure how to proceed, discuss with a legal professional. 

You will also want to know if you are covered in a worst-case scenario, like if an accident happens on site. Your home insurance policy may or may not cover you if something happens on the job site during the reno; you’ll want to call your insurance provider to find out. Before signing a contract, you should also confirm that your contractor is carrying their own liability insurance.

Find out about the paperwork and insurance you need before starting a home renovation. 

How to finance home renovations in canada

As with any big-ticket purchase, there are different ways to finance a home renovation. It’s common to pull from your savings to pay for any upgrades on your home. In fact, as of October 2021, a Bloomberg and Ratesdotca survey found that 59% of Canadians used savings to avoid taking on additional debt to make changes on their homes. 

Your savings aren’t your only option. Here are a few more, but each will have additional costs, including interest, depending how long it may take you to pay off the borrowed money.

• Mortgage refinance: This option involves breaking your mortgage and taking out a new one. The amount you borrow is rolled into your new mortgage payment, so you don’t have to deal with a separate loan or line of credit payments. 
• Home equity line of credit (HELOC): A revolving line of credit that is secured by the equity in your home. As you make debt repayments, the amount you can borrow again increases. 
• Line of credit: Another form of revolving credit. The big difference is that a line of credit may or may not be secured, like with a HELOC. 
• Credit card: You should always avoid financing large expenses with high-interest forms of debt. However, in some cases, a credit card may be suitable. Some credit cards, like Tangerine Money-Back Credit Card, offer cash back or perks on home improvement expenses. 

While renovations can be expensive (remember the shortages of wood in 2021, raising its costs?), they do add value to your home’s equity and value. Depending on your financial situation and goals, you’ll want to consider the return on investment before getting started. 

Read more on ways to finance a home renovation in Canada. 

How to hire contractors and save money on home renovations

Some people can do renos themselves or are connected with contractors as family or friends, which can help save a boat load of money. But not everyone is comfortable around a table saw or electrical wiring. Completing a home reno doesn’t require spending a fortune, even if you’re not the handiest person around. There are plenty of ways to cut costs, while still sticking to your project goals. 

When interviewing contractors and/or getting quotes, ensure you hire someone who’s transparent about fees and is realistic about project costs. Ultimately you want someone willing to help stay on budget. The right person or company will answer questions you might have about sourcing and delivering materials. Renovation supplies come at a variety of price points; a good contractor can offer guidance on maximizing your return on investment. They should also be able to help you with deals on good quality appliances and fixtures, and recommend the smaller tasks you can do yourself. For example, demolishing and cleanup, material pickup, and more can save you some dough if you do it yourself.

Read more on how to save money on home renovations. 

Take advantage of home renovation grants and tax rebates 

A home renovation project can cost a lot of money—often, more than many may expect. For that reason, you’ll want to get familiar with the municipal, provincial and federal grants and rebates available in your area. These incentives are generally geared towards home improvements, such as window replacement or furnace upgrades, that help make your home more accessible or energy efficient. 

Here’s a quick breakdown of some of the programs available. 

• The Canada Greener Homes Grant Initiative: Launched in the spring of 2021, this federal program aims to provide home owners with up to $5,000 for retrofits that promote energy efficiency. 
• Provincial and territorial grant programs: Every Canadian province and territory, from Nova Scotia to B.C. up to the Northwest Territories, offers some form of subsidy for green or energy-saving home improvements. Some also offer compensation for essential work to make homes more accessible for seniors or people with disabilities. 
• Multigenerational Home Renovation tax credit: In its 2022 budget, the federal government announced plans to introduce a new Multigenerational Home Renovation tax credit, starting in 2023. The credit would provide up to $7,500 for the construction of a secondary suite for a senior or an adult with a disability, to support multigenerational families living together under one roof. 

Is it time to get a pool? 

In recent years, inground pools have become an escape for families spending the dog days of summer in their own backyards—thanks to the pandemic. But of course, there’s more than the joy of family pool parties to consider. Another big factor is cost. 

In our article about what to expect when getting a pool, we reveal those costs—which ranges based on construction style, shape and size. Before diving into ownership, you’ll also want to get familiar with the easy-to-overlook, less-fun costs associated with it—from new fencing and insurance to upkeep and utility fees. 

What reno options do renters have?

If you’re a renter, you may not realize the options available for freshening up a space that’s leased. If this is you, you’ll want to read about how to upgrade your rental apartment without breaking the bank. We’re well aware that rent hasn’t gotten any cheaper in recent years, so we have you covered there, too. 

Here’s a quick recap of some of the steps you can take:

• Look for opportunities to declutter. Going through this process will help you visualize how to decorate once the clutter is out of the way. 
• Always check the fine print in your lease or rental agreement to confirm what’s allowed before getting started on any semi- or permanent changes. 
• You may be able to paint the walls (in the colour of your choice, too) or to make small alterations, like replacing faucets or upgrading light fixtures. Some landlords may even consider sharing some of these costs. 
• If you choose not to make major upgrades or your rental agreement doesn’t allow it, there are workarounds that can help you achieve the look you’re going for, such as hanging art and textiles or applying temporary peel-and-stick wallpaper.

Everyone deserves to live in a home that is both functional and beautiful. Don’t let renting get in the way of making your house a home.

More on renovations and home maintenance:

• Is my house covered if I’m not living there? Vacant home insurance, explained
• How cottage renos can reduce your capital gains

• Tax implications of building a laneway suite

About Justin Dallaire

Justin Dallaire is the senior editor at MoneySense.ca. He was previously an editor at Strategy magazine and has a master’s degree in journalism from Toronto Metropolitan University.

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