How to Budget for a Home Renovation in Ontario — The Smart Guide

Planning Guides · 9 min read · 2025-04-12

Proper budgeting is the foundation of every successful renovation. This guide shows you exactly how to plan, allocate, and protect your renovation budget in Ontario.

The difference between a renovation that ends with satisfaction and one that ends with regret almost always comes down to budgeting. Homeowners who plan carefully, understand hidden costs, and maintain a contingency fund consistently report better outcomes.

This guide walks you through every aspect of renovation budgeting in Ontario.

Step 1: Define Your Scope Before Your Budget

Before setting any numbers, clearly define what you want to accomplish. The scope determines the budget, not the other way around.

Write down everything you want, then categorize as must-haves and nice-to-haves. This prioritization becomes critical when costs inevitably shift.

Step 2: Research Real Costs for Your Area

Ontario renovation costs vary by region. Toronto and the GTA are 15–25% higher than the provincial average. Use these 2026 GTA benchmarks:

• Kitchen renovation: $18,000–$140,000 (Budget-Smart to High-End)
• Bathroom renovation: $12,000–$80,000
• Basement finishing: $30,000–$130,000
• Whole-home painting (interior): $4,500–$9,500
• Flooring replacement (whole home): $9,000–$33,000
• Roof replacement: $9,000–$22,000
• Window replacement (10 windows): $9,000–$22,000
• Deck or patio: $5,500–$27,000

Step 3: Build in Your Contingency Fund

Every renovation budget must include a contingency — 15–20% for existing homes, 10% for new construction.

In older Toronto homes (pre-1960), consider 20–25%. Knob-and-tube wiring, galvanized plumbing, asbestos insulation, and structural issues are common discoveries once walls are opened.

Step 4: Understand the Hidden Costs

• Permits: $600–$2,500+ depending on scope.
• Design and architectural fees: $2,200–$11,000 for professional design.
• Temporary living arrangements: Budget for eating out or temporary accommodation during kitchen/bathroom guts.
• Storage: $110–$330/month for a storage unit during major renovations.
• Waste removal: $330–$900 per bin rental.
• Landscaping repair: $550–$2,200 for post-renovation landscaping.
• HST: All contractor labour and materials in Ontario are subject to 13% HST. Confirm if quotes include HST.

Step 5: Financing Options in Ontario

• HELOC: The most popular option. Interest rates typically prime + 0.5% to 2%. You only pay interest on what you draw.
• Mortgage refinancing: Rolling renovation costs into a new mortgage. Best for major renovations ($55,000+).
• Personal line of credit: Higher rates but does not require home equity. Good for projects under $28,000.
• Canada Greener Homes Grant: Up to $5,000 for eligible energy-efficiency improvements.
• Contractor financing: Some offer payment plans, but rates are typically higher than bank products.

Step 6: Track Expenses Throughout the Project

Once renovation begins, track every expense in real time. SimplifyReno's built-in financial tracking records every invoice, payment, and change order in your project dashboard and stores everything in your digital Vault.

Without a tracking system, costs drift silently upward until you are 30% over budget at the 80% mark. Download SimplifyReno free on iOS and Android and take control from day one.

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