One-quarter of Canadians are making financial sacrifices to complete home renovations this summer. As a result of their planned renovations, nearly one-quarter say they are not paying down debt as fast as they should be, 25% aren’t saving enough for emergencies, and 21% are not saving enough for retirement as they focus on renovating their home.
A new Ipsos shows nearly half (44%) would dip into savings to cover the extra costs, while 15% would take on more debt.
Across the country, 57% of homeowners say they’re likely to renovate in the next year, with Quebec (72%) and Ontario (61%) having the highest number of households considering a renovation. On the other hand, only 40% of homeowners in the Atlantic provinces are considering renovations.
On average, Canadian homeowners plan to spend $16,439 on their home renovations. Albertans anticipate spending the most on their renovations ($22,586 on average), while those in Saskatchewan and Manitoba anticipate spending the least ($11,934 on average).
Quebecers will finance the largest portion of their renovation with debt (31%) while those in Saskatchewan and Manitoba will use the least amount of debt (20% of the renovation cost). Homeowners relying on debt think it will take them a little more than two-and-half-years (30.6 months) to pay off debt.
Four in ten Canadians (42%) say they haven’t set a renovation budget yet, but that they intend to, while 9% have no intention of budgeting. Atlantic Canadians are most likely (19%) to say they haven’t budgeted and won’t do so. They’re also the most likely to use a credit card to pay for their renovations (23% vs. the national average of 13%).
Top Financial Fears for Homeowners
Finding larger problems that will add to their renovation costs 33%
Sudden change in financial situation (job loss, divorce or illness) 18%
Not getting their investment back when they sell their home 17%
A collapse in the housing market that lowers their home’s value 15%
Taking on too much debt 14%
Not paying off renovation debt as quickly as they’d like 13%
An interest rate increase that increases their debt 9%