How To Budget For Your Next Home Renovation Project

Home renovations can be such a rewarding experience. When you decide to remodel a section of your home or the entire space, one critical step is budgeting for the project. People have different reasons to invest in a home renovation Vaughan. Some want to boost property value, expand the living space to suit the needs of their growing family or simply incorporate the latest designs. Whatever your goals are, you may not achieve them if you don’t set up a proper budget. Costs can quickly add up and create unnecessary pressure and stress during or after the renovation project. We’ll help you to plan a suitable budget that will allow you to achieve your renovation goals.

What Affects Home Remodel Costs the Most?

Home remodeling projects can vary significantly in cost, depending on multiple factors. Careful planning is essential to save money while ensuring a successful remodel.

Key Factors That Impact Costs:

Project Scope – A whole home remodel costs more than updating one room, like a bathroom remodel. Larger square footage increases labor and material expenses.
Materials & Finishes – High-end materials, luxury fixtures, custom cabinetry, and built-in storage raise costs, while standard materials can keep spending in check.
Labor & Contractors – Hiring the right contractor is a smart investment. Getting multiple quotes from several contractors makes sense for a competitive price.
Structural Changes – Major overhaul projects that modify layouts require permits and increase expenses.
Timing & Seasonality – Off-season renovations can reduce costs, while peak times may have higher labor rates.
Energy Efficiency & Upgrades – Heated floors, energy-efficient lighting, and appliances add upfront costs but lower long-term energy costs.
Unexpected Costs – Always plan ahead for surprises like structural issues, additional home projects, or hidden repairs.

List your reasons to renovate

Start with the “why” of renovating your home. Perhaps you don’t want to move to a bigger home so renovating your existing space is a way to fulfill your growing needs. In fact, home renovations Richmond Hill can turn out to be cheaper than moving. It could be that you’ve lost interest and energy in your current space so remodeling will help you see the beauty of your home again. In this case, you’ll need to make changes that you love and transform your home into a beautiful and functional space.

If you start by thinking about your reasons for renovating, you’ll set up a budget that is in line with your goals. The budget should be realistic and generous so that you can fulfill every item in your wish list. Keep in mind that making minor and major changes in your home can affect your everyday life. As you plan and design the new space, choose upgrades that will have a positive impact on your lifestyle.

Don’t rush for the cheapest contractor

Many people consider going for the lowest priced contractor in order to save on remodeling costs. Most of these contractors who offer very cheap quotes cut corners during installation or repairs and you’ll be forced to part with more money in order to get the job done right. You’ll regret not spending the extra money on a job that will be done well the first time. Choose an experienced contractor who will offer you quality workmanship. You may have to spend slightly more on supplies or labor but it’s worthwhile if you’ll get value for your money.

How Energy Efficiency Lowers Your Project Costs

Making your home remodel more energy efficient is a smart way to cut long-term home improvement expenses. While the upfront cost of energy-saving materials, appliances, and lighting may seem high, the savings on utility bills quickly add up. Brands like Owens Corning (for insulation), Andersen Windows (for energy-efficient windows), and SmartHome (for smart thermostats) help homeowners reduce energy waste while enhancing comfort.

When planning renovations, consider upgrading room insulation, installing LED lighting, and choosing ENERGY STAR-rated appliances. A bathroom remodel with water-efficient fixtures and heated flooring from Schluter Systems can also lower expenses. Several other factors, such as smart thermostats and high-performance paint, improve efficiency.

Toronto Home Remodel Costs Per Square Foot

Planning a home improvement project in Toronto? The average costs of a remodel depend on several factors, including the square foot area, materials, and scope of work. A basic renovation for an entire house typically ranges from $100 to $200 per square foot, while custom designs and high-end finishes, such as custom cabinets and premium flooring, can push costs beyond $250 per square foot.

If you’re focusing on outdoor projects, like landscaping or deck installations, expect prices between $50 to $150 per square foot, depending on materials and complexity. For those wanting to enhance natural light and aesthetic appeal, window upgrades and skylights are a nice to haves that can increase home value.

To plan carefully, get multiple quotes, read reviews, and consult professionals. The perfect time for renovations varies, but off-season projects can save money. Whether it’s a must haves or other projects, smart budgeting ensures success.

Get help setting up a budget

When you decide on the total amount that you’re willing to set aside for the renovation project, take 10% of that amount and put it aside. Approach contractors to get quotes on the renovation project based on what you’d like to achieve. Don’t just look at the figures given by each contractor, be assured of excellent workmanship and a team that values your time and money. Remember, you never have to settle for less when it comes to home renovations.

At Kitchen and Bath, we go the extra mile to help you set up a suitable budget for your renovation project giving you the home of your dreams.

FAQ

How do I create a budget for a home renovation?

Start by listing all expected expenses, including materials, labor, permits, and unexpected costs. Get multiple quotes from contractors and research average costs for your project. Factor in 15-20% extra for surprises. For example, a bathroom remodel in Toronto can cost $12,000–$30,000, while a full home remodel may start at $100 per square foot.

What is the most expensive thing when renovating a house?

Structural changes, kitchens, bathrooms, and custom features are typically the biggest expenses. High-end appliances (e.g., $5,000+ for Sub-Zero refrigerators) and energy-efficient systems add costs but increase value. Labor and permits also drive up expenses, with Toronto contractor rates ranging from $50 to $150 per hour. The house’s size and condition also impact the final price.

How to start renovating a house in Toronto?

Begin by checking zoning laws and permit requirements with the City of Toronto. Next, set a budget, hire a licensed contractor, and prioritize essential upgrades like roofing, insulation, and lighting. Research brands like Sherwin-Williams for paint, Kohler for fixtures, and Cambria for countertops. Planning ahead helps prevent unexpected costs and ensures a successful remodel.

How much do I need for renovations?

Renovation costs vary based on project size and materials. A bathroom remodel in Toronto costs $15,000–$35,000, while a kitchen renovation can range from $30,000 to $80,000. For a whole home remodel, expect to pay $100–$300 per square foot, depending on finishes. Planning for several other factors, like lighting, built-in storage, and custom cabinetry, can increase final costs.

How to Plan Your Home Renovation Project Costs in 2025