Should you stay or should you go?

If you've outgrown your space, want a shorter commute or are simply looking for a home that better suits your lifestyle, deciding whether you should move or renovate your current home and stay the course can be difficult. For Canadian homeowners, affordability pressures and changing interest rates can make the decision even more complex.

There are valid reasons to change your address. Maybe you’ve had a change in your living situation or need to upsize or downsize  — which were the top reasons why repeat homebuyers purchased new homes in a 2026 Canada Mortgage and Housing Corporation (CMHC) survey.¹  

But not everyone wants the hassle of packing up and moving. The CMHC survey also found that 63% of Canadians with a mortgage planned to renovate their homes in the next five years.¹

Before you start comparing renovation costs with moving expenses, take a deep dive into your financial situation, long-term plans and how each option fits into your monthly budget.

Start by asking yourself why you’re considering a change. Are you looking for more space, a different neighbourhood or a home that's easier to maintain? Or would giving your current home an update solve your biggest frustrations?

Also consider these questions: 

• How long do you plan to stay in your home?
• What’s your current mortgage term and maturity date?
• Are there prepayment charges for breaking your mortgage contract?
• Does your income and monthly budget support a new loan?
• How much savings, available credit and home equity do you have?
• Do you have enough savings for either moving expenses or those unexpected costs that almost always come up during a renovation?
• Are there any big life changes on the horizon, like a new baby, an empty nest or retirement, that could affect your housing needs?
• Which option supports your current and future financial goals?
• Does your current mortgage term allow porting to a new property?

Rather than focusing solely on the total amount you may need to borrow, consider how your decision will affect your monthly cash flow today and your financial flexibility in the future.

Both moving and renovating have advantages and trade-offs. Comparing the possible benefits and challenges of each option can help you figure out which path is best for you.

If you like your neighbourhood and a few design tweaks could help you love your home again, renovating may be a better alternative. Plus, your home is likely your biggest asset — improving your quality of life could potentially increase its value.

But renovations can come with a hefty price tag. According to the CMHC survey, nearly half (46%) of Canadian homeowners planning to renovate expected to spend at least $20,000,¹ while the average renovation cost between 2022 and 2025 was $33,500.²

Keep in mind that while some renovations can increase your home's value, others may primarily improve your enjoyment of the space rather than deliver a significant return when you sell.

Before you start tearing down walls, consider these questions: 

• What type of renovation are you taking on? Is it a small update or a major construction project?
• How much money do you think you’ll need to complete the renovation? Will the cost strain your finances?
• Will you need funds up front or in stages as the job progresses?
• Have you built a contingency fund for unexpected expenses, such as material price increases or additional labour?
• How long do you anticipate it'll take to pay off the debt you accumulate? (Creating a proposed repayment schedule may help with decision-making and financial planning.)
• How long do you plan to stay in your home after the renovation? Could you recoup your investment in that timeframe?
• If you need to borrow, how much will you need? And will payments align with your broader financial goals?

As energy costs remain an important consideration for many homeowners, improving your home’s energy efficiency and protecting it from weather risk may be worth exploring as part of your renovation plans. Many homeowners are prioritizing upgrades such as new windows and doors, improved insulation and more efficient heating and ventilation systems to help reduce energy consumption and improve comfort.¹ The Home Energy and Advice Tool from Climative can help you identify opportunities to enhance your home’s energy performance, estimate renovation costs and explore ways to better protect your home from extreme weather events.

If you’ve been saving to renovate your home, way to go! You can pay for upgrades without adding interest rates to your renovation costs. But for many homeowners, borrowing is a more realistic option.

You have multiple options when it comes to financing home renovations: 

• Refinance your mortgage: Provides a lump sum with scheduled monthly payments. 
• Apply for a home equity line of credit (HELOC): Offers ongoing access to available credit that you can borrow from as needed. This can be a great option for renovation projects completed over time, as you only pay interest on the amount you use rather than borrowing the full amount upfront. For example, with a Scotia Total Equity ® Plan (STEP), once the renovations are complete, the balance can potentially be converted to a mortgage component through a HELOC restructure.*
• Take out a personal loan: Allows for flexible and variable rates and fixed payments.
• Apply for a line of credit: For example, the ScotiaLine Personal Line of Credit^® uses an access card for convenient financing for in-store and online purchases at a competitive interest rate with no annual fee.

The right renovation financing option should reflect your current cash flow, future plans and overall borrowing needs, not just the amount you may be eligible to borrow.

Not sure which borrowing option aligns with your goals? A Scotiabank Home Financing Advisor can help you compare renovation and home-buying scenarios.

Another option for financing a home renovation is with a HELOC like the Scotia Total Equity ® Plan (STEP).* This flexible borrowing plan uses the equity you’ve built in your home.

Depending on your eligibility, available equity and borrowing needs, you may be able to access home equity to help fund a renovation, purchase a new home or buy an investment property.

STEP gives you access to multiple borrowing solutions through a single application,³ including the flexibility to divide your mortgage into different terms and rates with up to three mortgage solutions. As your needs change, your borrowing strategy can evolve with them. To view your available STEP credit, log in to your online banking. You can also use the STEP calculator to estimate your available equity.

Although you can update your house, a shiny new kitchen or finished basement can't address factors such as a better location, a preferred neighbourhood, a higher-rated school district or a shorter commute. Sometimes, moving to a new home may be the better option.

But a new home’s price tag is just one cost to consider. Other things you need to know before buying a home include fees for closing costs — such as legal fees, appraisal fees, administration fees, title insurance and land transfer taxes.

Closing costs typically range from 1.5% to 4% of a home’s purchase price. This means the closing costs on a $750,000 home could be anywhere from $11,250 to $30,000, depending on the type of property you purchase and your province or territory. You usually pay your closing costs before the closing date, and you generally can’t fold them into your mortgage.

Most provinces and some cities also charge a land transfer tax (LTT). This fee, also known as a property transfer tax, is typically based on the purchase price of the property and calculated using a sliding scale that can vary by province or city. The more expensive the home, the higher the LTT you pay.

Your current mortgage situation is a major consideration in the decision to move.

Are you mortgage-free and looking to downsize? You may be able to reduce your overall housing costs and continue enjoying homeownership without a mortgage payment. Plus, if you have money left over from the sale of your house, extra funds could go toward retirement savings, a dream vacation or a few updates to make your new space feel like home right away.

But moving to a larger or more expensive home or neighbourhood may mean taking out a new mortgage. Review your financial plan with your advisor and determine if you can easily take on a mortgage without putting your other financial goals on hold.

In addition to helping you get pre-approved for a new mortgage, a Scotiabank home financing advisor can help you evaluate:

• Benefits of a variable-rate mortgage or fixed-rate mortgage
• Whether it would be beneficial to break your current mortgage term and pay the prepayment charge or port your mortgage to a new property, if eligible
• Mortgage protection insurance
• Prepayment terms and conditions

Mortgage porting is when an eligible homeowner transfers their existing mortgage, including the interest rate and remaining term, from one property to another without a prepayment charge.

Porting can be an option if you purchase a new property and sell your existing property at the same time. Whether you’re eligible to port a mortgage also depends on your mortgage agreement and lender requirements.

If you’re eligible and have an outstanding balance on your current mortgage that has an interest rate lower than current rates, consider “porting” your existing mortgage to the new home to hold on to your lower interest rate.

When comparing your options, you can use a mortgage calculator to see how different borrowing amounts, interest rates and payment schedules may affect your monthly budget.

A Scotiabank home financing advisor can also help you decide between refinancing, porting or arranging a new mortgage. They can also assist with completing a mortgage application.

While it’s always smart to pay attention to housing prices and mortgage rates, they’re only one part of the decision. Although market conditions can influence affordability, your personal financial readiness should remain the primary factor when deciding whether to move or renovate. Trying to perfectly time the market is often less important than ensuring your housing decision aligns with your budget, goals and long-term plans.

Buying a home is easier when you have a:

• Steady income
• Healthy balance in your savings account
• Good credit score
• Realistic budget

If you’re considering staying put, your renovation budget should fit comfortably within your monthly expenses.

When borrowing costs are more stable, people often find it easier to budget for monthly payments. But regardless of the rate environment, it's important to understand how your financing choices affect affordability today and financial flexibility in the future.

Buying or renovating a home is a big decision — it’s OK to take your time to figure out what’s best for you and your bank account. Whether you use savings, available credit or the equity in your home, the best choice is the one that supports your housing needs today while supporting your financial goals for the future.

A Scotiabank Home Financing Advisor can always help you compare your options — or simply explore what's possible — and develop a borrowing strategy that aligns with your goals.