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How Much Does It Cost To Renovate A House?

Renovating your house can be an important step in your homeownership journey, so you’ll need to know how much it will cost to renovate a house. To get started on the journey to your ideal property, you must adequately plan and budget the changes you will make. 

Planning your home renovation budget 

Before you start any of your renovations, first estimate how much you’ll need to save or how much you’ll need to borrow. You know your financial situation the best, and you also understand what changes your house needs.  

Different types of home renovation costs

The cost of renovating can be split into three categories, and they are the materials, the tools, and the labour. Each homeowner will vary in how much they spend for each process component.  

  • Materials—whether buying paint or new appliances, be sure to allot enough to spend on them. You may need more than you initially predicted, or your desired materials may be priced differently than expected.  
  • Tools—depending on your comfort level and the renovations, you’ll need to add some tools to your arsenal for the work you’ll do yourself. If you estimate that the upgrades will continue for some time, investing in power tools that create convenience will be a good idea.  
  • Labour—hiring people is the most expensive aspect of renovating. Their time and expertise are what influence their prices. Even if you decide to renovate yourself, the cost would be in your time and effort. 

Once you know what you need, you may have to compare the cost of your equipment and materials at different stores to estimate the cost. When you see the final estimation, you can start thinking about saving by doing some of the tasks and how you’ll finance the renovation. Remember that renovations can cost several hundred dollars up to several thousand dollars, which may require a good portion of your financial resources to complete the projects you identified. Even so, home improvements are a good investment that will benefit the owners of the home by making the property more valuable.

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Budget-friendly strategies for renovating a house

Even though renovations cost several thousand dollars, you can find strategies to help you stay conscious of your spending.  

Finding quality materials 

Choosing materials with the smallest price may seem more cost-effective, but the opposite is true. If you buy materials to save money, you may need to replace them more often. This leads to spending more money in the long run because you’ll have to buy the same items again.  

Investing in quality materials doesn’t mean choosing the most expensive items either. You can find materials that are just as dependable but are still affordable to the average Canadian. One example is with countertops. Stone countertops are more expensive, but they are more durable than laminate ones.  

Do-it-yourself (DIY) renovations 

Some parts of the renovation process are doable for the average resident, which can help you save some of your home renovation budget. Painting the wall is a simple renovation that most people can do, but if you’re feeling adventurous, you could replace the floor tiling yourself.  

Another aspect of renovating that people tend to forget about is the destruction of the previous contents of the space. Many contractors offer a demolition service that prepares the area for the makeover, but you can certainly do it yourself. Even so, remember that demolition has to be done carefully. You don’t want to ruin the wall or floor during the process accidentally.  

Negotiate with contractors 

Not every project will require you to hire contractors, but for the ones that do, you can negotiate with them on their prices. Most services let you ask for a quote for free, so you can browse different contractors, ask for a quote, and determine the best course of action from there. If you know any contractors personally or connect with one through a friend, you might be able to save that way, too. 

Financing your renovation

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Your house is a significant investment, meaning any project will require monetary support. Canadians who want to make home improvements have a few options that they can choose from to fund their renovation goals.  

Personal savings 

You can use your savings for your home renovation budget if your plans are simple. Painting the walls or changing the décor are all reasonable purchases if you plan to use the money you saved. When you use your savings, paying towards interest isn’t a part of the process. However, more major renovations like kitchen makeovers or flooring replacements may require more funding, making them more demanding to save for.  

Loans from the bank 

Many Canadians borrow personal loans from traditional financial institutions for home renovation projects, among other reasons. The amount they lend usually depends on your credit history, so applicants who need a loan will also need to provide a strong financial background.  

If your financial history doesn’t meet the banks’ standards, you may be offered a loan amount lower than you requested. The bank may attach a high-interest rate if you obtain that amount because of your credit score.  

Home equity loan 

A unique way to finance your renovation projects is by accessing the equity in your property in the form of a loan. You can calculate how much equity you have by subtracting your outstanding mortgage amount from the appraised value of your house. Since houses in Canada have high value, you could receive a considerable amount on your loan.  

Because of the high value of home equity loans, they are a good choice for large remodelling projects like kitchen or bathroom renovations. The money from the loan could allow you completely renovate the space and not just stick to simple renovations.   

You can find home equity loans from alternative lenders like Alpine Credits. Unlike major financial institutions, Alpine Credits does not determine your approval based on your credit score or income. As a result, they make an excellent choice for home renovations because of their flexible criteria and comparably lower interest rates than credit cards.

Conclusion: home equity loans to cover the cost of renovations

Before starting your renovations, calculating how much you’ll need to support your renovation goals is best practice. Even though the final estimation can be intimidating, making your home more comfortable and convenient is a worthwhile investment.  

You can contact a member of the Financial Solutions Specialists team at Alpine Credits, and they can get you started on your application for a home equity loan or, answer any questions you may have.  If you have paid at least 25% of your property’s value, you are eligible for a home equity loan from Alpine Credits.

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Frequently asked questions

Many home renovation projects fall under the same price range, but ultimately, the magnitude of the renovation is what determines the cost. More expensive renovations include kitchen renovations, bathroom upgrades, and significant layout changes. Despite being more costly, they are great additions to the property and can increase your living standard and home value.

Whether or not a complete renovation is beneficial depends on the goals that you have for your property. If you see that the area is worth staying in for a long time and future generations, then completely remaking the space may be beneficial. On the other hand, complete renovations may not be worth it if the costs outweigh the advantages.

The decision to hire a general contractor or do the renovations yourself depends on the scale of the project, your confidence in the task, and the size of your budget. Labour costs may take up more of the renovation budget, but keeping yourself and your property safe is what matters. If you’re changing the colours of the walls or replacing the floor tiles, you can accomplish it yourself if you’re willing to explore the realm of renovating.