Hidden Costs of Home Renovations in Canada: What Nobody Tells You?
Home renovation costs in Canada can be far more than what you see in your contractor’s initial quote. While most homeowners budget for materials, labour, and permits, there’s a whole other side of expenses that often remain hidden until the work is already underway. Understanding these overlooked expenses before starting your project can save you from stress, delays, and financial surprises along the way.
Let’s discover how it can be done, so you can plan smarter and renovate with confidence.
Home Renovations in Canada
Home Renovations are full of enthusiasm and excitement. Homeowners usually prepare it with Pinterest board designs and a rough budget. Even the smallest step is essential for a successful outcome. Along with all the designs and planning, preparing a detailed budget is very important.
You need to consider many factors while preparing a budget for your dream house. The budget should consist of each and every detail related to renovation. There are a lot of sneaky costs that may emerge as soon as you start demolition. These hidden costs can increase your renovation budget by more than 20%. It can cause both emotional and financial burden, as these expenses are not included in your budget.
Hidden Costs of Home Renovations in Canada
So, what are the hidden costs that can cause big headaches? Let's dive deep into it as this blog uncovers the hidden costs of Home Renovation in Canada.
1. Damp Treatment
Damp is a very common problem in older Canadian Homes. You may have noticed a leaky basement, damp walls, and mold in certain old houses. As soon as demolition starts, these problems may surface. This type of condition can also occur due to improper ventilation.
Untreated damp can cause serious health problems. It also has the potential to weaken the structure of our house. The valuation of your house decreases rapidly. If you are working in the basement, it is better to do a moisture inspection at first. If you are planning to renovate your house, consider treating your damp at first; otherwise, all the fancy and aesthetic designs you are planning to do will not be of any use.
The costs of basic Damp Treatment start at around $2000. The Mold Removal Procedure can range from $500 to $6000. The cost of waterproofing your basement starts at around $10000. The final price depends on the size of the affected area. Don’t forget to include this in your budget if you are planning to renovate an old house.
2. Interior Designing
You may think that designing is included in your Home Renovation Package. Most of the time, it’s not the case. A general contractor may provide you with basic layouts. But if you are planning an aesthetic makeover and making it a smart home, you need to pay extra. You have to hire dedicated designers and architects.
Most of the packages include a good quality paint. If you like fancy wallpapers on your walls, you may need to pay an extra charge. Many homeowners prefer high-end touch-ups, which can add to your cost.
A professional wallpaper can range from $2 to $6. The hourly charges for an Interior Designer start at around $75 per hour. The packages can cost about $2500 or much higher and are typically based on the area you wish to design. Further, the prices may vary as per your scope and province.
3. Permit Fees
Most Canadians are unaware of the permit fees that come up with Home Renovation. Permits are mandatory in most renovations. If you do not pay for permits, you may have to face legal consequences. This process can delay the duration of your project. In the worst case, you can be forced to stop your current project.
The cost of legal permits varies from state to state. In Toronto, the permit for a major renovation can range from $200 to $2000. If you live in Vancouver, you need to pay $150 per $100000 of construction. If you want to avoid fines, discuss with local municipalities about the permits before starting your project.
Have a look at our detailed The Ultimate Basement Renovation Checklist Canada
4. Waste Disposal
Many people fail to include waste disposal in their budget. It is necessary but often overlooked. You can rent a Dumpster by paying $300 to $600 per week. If you want to dispose of harmful waste, you have to pay more. Asbestos and mold disposal are not included in the packages.
Home Renovation causes a lot of debris. You may need a Deep Cleaning for your home. This can cost around $1200 to $1800. Do not forget to add Waste Disposal in your budget as it is an essential part of remodeling.
5. Outdoor Upgrades
Some individuals may consider adding outdoor enhancements to their existing home project, which is intriguing, but to avoid a costly surprise if not planned for. Many times, people think about adding decks, patios, driveways, and such to enhance the look of their gardens.
The cost of the deck installation can be anywhere between $9000 and $18000. The base price of shed installation is $2500. It can go up to $10000 if you choose premium materials. Driveways can cost around $4000 to $10000.
You may need excavation for drainage and permits for decks and fences. This can add up to your cost. If you are planning to have ramps and pathways, try to plan ahead. You can ask for bundle deals of both interior and exterior designing from a contractor to save money on labour and permits.
6. GST or HST
There are taxes on certain renovation work. You are required to pay 5% GST or 13% to 15% HST. The amount of tax usually depends on your province. Generally, if your renovation costs $50000, you have to pay $2500 to $8500 in taxes. Most of the homeowners forget about taxes while comparing the quotes. It is better to include them in your budget to avoid any last-minute delays.
You may also to learn How to Climate Proof Your Home? 10 Upgrades for A Climate-Resistant House
Hidden Costs in Home Renovations: Your Reality Check
Home Renovations in Canada come with several perks. It not only transforms your house but also increases its market value. A modern home appeals to the aesthetic of your house. If you incorporate smart home appliances, your life can get more comfortable than ever.
It is important to know the hidden cost before starting your renovation. An organised budget planning is essential for the successful completion of a project. If you are not aware of the hidden charges, your budget can exceed more than your estimates. This can lead to mental stress and financial difficulties. It may also lead to incomplete construction.
When you are aware of hidden home renovation costs, you can plan every aspect in advance. This saves a lot of time and money. You will have the opportunity to enjoy the renovation as opposed to worrying about money.
Last Updated:
Aug 12
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