Renovate or Move in Toronto? How to Decide
Love your street but outgrowing your house? The real costs of renovating versus moving in Toronto, the questions to ask and when each one makes sense.
Renovate if you love your location and the house can become what you need. Move if the problem is the location, the lot or the layout, because no renovation fixes those.
It's one of the most common conversations we have at kitchen tables across the east end. The family's grown, the house hasn't, and you can't decide whether to call a contractor or call us. Here's how to think it through, honestly.
The short version
- Moving costs are mostly fixed and up front: land transfer tax, real estate fees, legal and moving.
- Renovation costs are open-ended, and Toronto older homes love a surprise.
- If you'd still be on the wrong street, the wrong lot or the wrong school path after renovating, move.
- Get a contractor quote and a home value before you decide.
What does it really cost to move in Toronto?
More than most people expect, and most of it you never get back. When you sell and buy in the City of Toronto, budget for:
- Land transfer tax, paid twice in Toronto: once to Ontario and once to the City
- Real estate fees on your sale
- Legal fees on both the sale and the purchase
- Any mortgage penalty, if you can't port your mortgage
- Movers, utility hook-ups and the small things every new house needs
The good news: these costs are known before you start. Our Upsizing Calculator adds them up with your own numbers, and our closing costs guide explains each one.
What does it really cost to renovate?
Whatever the quote says, plus a contingency. In a Toronto house built in the 1910s or 1920s, opening a wall can turn up old wiring, old plumbing or structural work nobody planned for. You'll also want to budget for:
- Design and engineering fees
- Building permits, and possibly zoning approvals for additions
- A contingency for surprises, because older homes are full of them
- Living somewhere else during a major renovation, if you can't stay
- Time: months of your life, not weeks
"Moving costs hurt, but you know the number on day one. With a renovation, you find out the number on the last day." — Candice Schott
When does renovating make sense?
Renovate if
- You love the street, the school and the neighbours
- The lot and structure can handle what you need
- You can live through the disruption
- The finished house won't be the most expensive on the street by a mile
Move if
- You need a different neighbourhood, school or commute
- You need a bigger lot, parking or a yard
- Zoning or the structure limit what you can add
- You'd rather not live in a construction zone
Will a renovation add value to your home?
Some will, some won't, and it depends on the street. Kitchens, bathrooms, an extra bedroom or a finished basement with good ceiling height usually help. Highly personal choices often don't. The other risk is over-improving: if your renovated house is priced well above everything else on the street, you may not get your money back when you sell.
Before you commit, we'll pull what renovated and unrenovated homes on your street have sold for. That one comparison answers a lot.
Can you add a unit instead?
Sometimes. Toronto now allows more homes on residential lots, including garden suites, laneway suites and multiplexes in many areas. A second unit can help pay for the renovation, house a parent or give grown kids a place to land. It also adds permits, cost and complexity. Read our take on garden suites and the City's multiplex plans, then check your lot with a designer.
Five questions to ask before you decide
- Is the problem the house or the location? You can change a house. You can't change its street.
- What would the renovation really cost? Get at least one real quote, not a guess.
- What's your home worth now, and after? Ask us for both numbers.
- What would the right next home cost, all in? Including land transfer tax and fees.
- Can your family live through it? Be honest about the dust, the noise and the delays.
"I've told clients to stay and renovate, and I've told clients the dream reno would cost more than the dream house. The right answer is the one that fits your life." — Candice Schott
Free guide
The Upsizer's Guide
Buy first or sell first, lining up both closings, and every cost, in one plan you can keep.
Get the free guide →Common questions about renovating or moving
Is it cheaper to renovate or move in Toronto?
It depends on the size of the renovation. A modest renovation is usually cheaper than moving once you add up land transfer tax, fees and moving costs. A major addition or gut renovation can cost more than moving and takes far longer.
Do I need a permit to renovate in Toronto?
Many renovations need a building permit from the City, especially structural changes, additions, new plumbing and basement apartments. Check with the City or your contractor before you start.
Will I get my renovation money back when I sell?
Not always. Updates that make a home more functional usually help. Very personal choices, and renovations that price the home far above the street, often don't pay back in full.
Should I renovate before selling?
Usually not a big renovation. Small, smart updates before listing often make more sense. Read what not to fix when selling a house.
Not sure which way to go?
We'll show you what your home is worth today, what it could be worth after a renovation and what your next home would cost. Then you decide. Get in touch with Candice and Jason →
General information, not legal, tax, mortgage or construction advice. Talk to your lender, lawyer, contractor and the City of Toronto about your situation. Not intended to solicit buyers or sellers currently under contract.