Q: Is it cheaper to renovate or move in Canada?
For most Canadians, renovating is cheaper than moving when you account for all transaction costs. Selling and buying costs 7–12% of your home's value — on a $700,000 home that's $49,000–$84,000 before you've touched the new place. A meaningful renovation often costs less and keeps you in your existing mortgage rate.
Q: What is land transfer tax and how much is it in Ontario?
Land transfer tax is a provincial tax on property purchases. In Ontario, it's roughly 1.5–2% of the purchase price. Toronto buyers pay an additional municipal land transfer tax, effectively doubling it. On a $900,000 purchase in Toronto, combined land transfer tax can be $30,000–$35,000.
Q: What real estate commission rate should I use?
Most Canadian real estate transactions use a total commission of 4–5%, split between buyer's and seller's agents. In competitive markets, some sellers negotiate 3.5–4%. Use 4.5% as a safe planning number.
Q: Should I factor in rising home values when deciding?
Both renovation and moving should benefit from the same market appreciation in most cases — the house value goes up either way. The renovation net equity gain shown here is only the value the renovation adds above its cost, which is typically 60–80% for kitchens and bathrooms.
Q: What about the disruption of living through a renovation?
Living through a major renovation is genuinely disruptive. A kitchen reno means no cooking for 8–12 weeks; a bathroom reno with one bathroom requires careful planning. Some families temporarily rent — add $3,000–$6,000/month for that. Include it in your renovation total for a fair comparison.
