01 May Buying-and-Renovating
Should You Renovate It Yourself or Hire It Out?
Buying a home that needs work can be a smart move—or a stressful misstep—depending on how well you plan. Whether you’re a hands-on fixer or want the place done right before moving in, the key question is:
Should you take on the renovation yourself, or hire it out to the pros?
Ryan’s Renovation Matrix
This decision matrix helps you quickly see how hands-on you should be based on skills, goals, and budget.
| Renovation Size | Skill Level | Recommended Approach |
|---|---|---|
| 2% of Purchase Price | Beginner | DIY (paint, flooring, minor updates) |
| 5% of Purchase Price | Some Experience | DIY with trade support |
| 10% or More | Advanced / Contractor | Hire out or treat as a flip |
Rule of thumb: Renovations over 10% of purchase price are like flipping a home—for yourself. Plan accordingly.
Scenario 1: Renovate Before You Move In
Do all the work while the home is empty, then move in—cleaner and faster if planned well.
- Talk to your mortgage broker before you shop.
- Confirm purchase-plus-improvement or construction loan options.
- Ensure you meet the 5% downpayment and LTV requirements.
- Request detailed contractor quotes during the conditional period.
- Verify contractor start date aligns with closing.
- Allow 15–25% contingency in your budget.
- Set a realistic move-in target with 1–2 months buffer.
- Make major layout and finish selections early.
Scenario 2: Renovate After You Move In
Live in the home and renovate in stages—more flexible but slower and messier.
- Discuss renovation plans with your broker before closing.
- Plan for a renovation mortgage or HELOC post-equity build.
- Prioritize rooms and schedule work in phases.
- Obtain multiple detailed contractor quotes.
- Prepare for dust, noise, and limited space.
- Decide on DIY vs pro tasks per phase.
- Agree on payment draws and lien waiver schedule.
- Reevaluate scope and budget after each phase.
Deep Dive: Questions to Ask
Questions for Your Mortgage Broker
- Can I use a Purchase Plus Improvements mortgage? What’s the maximum LTV?
- Is a staged draw construction loan better for my scope?
- How are draws released, and are any holdbacks required per provincial lien laws?
- What downpayment do I need, and what timelines apply (e.g., 90–120 days to complete)?
- What documentation (quotes, permits, plans) must be submitted before closing?
- How do I get holdback funds released after final inspection or appraisal?
- Are there provincial rebates or warranty requirements for my renovation type?
Questions for Your Contractor
- Do you carry full licensing, insurance, and WSIB coverage? Can I see certificates?
- What’s your availability, and can you meet my conditional-period quote deadline?
- Can you provide a detailed, itemized quote and contract with milestone draws?
- Will you manage permits, inspections, and code compliance?
- What payment schedule and lien waiver process do you require?
- Can you share references and examples of similar completed projects?
- How will you handle dust control, daily cleanup, and living arrangements?
- What warranty and after-service support do you offer upon completion?
Note: Specific requirements can vary by province, especially for permits and lien holdbacks. Always double-check local building codes and financing rules in your area.
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