So you’re ready to get rid of that kitchen in your house. The cabinets were a bright cream in 1993 but have settled into a tired tan that looks dreary no matter what you do with the lighting. The backsplash still looks terrific until you realize that it’s the same pattern that one of the families has in their kitchen in the Netflix show Stranger Things – and that show is set in the early 80’s. Did you know that the average kitchen remodel in Canada costs $30,944 – or about $195 per square foot? Building the right home renovation budget will help you keep your costs in line – and will help you get approval for the renovation financing that you need.


What about more wide-scale home renovation? The cost per square foot will tend to drop because other parts of the house don’t need as many upgrades as the kitchen. That granite countertop and that High End Viking oven will add up in the kitchen. If you’re renovating your basement, you may only be talking about paint and flooring. For a whole-house renovation, you can plan to spend no less than $10 to $60 per square foot. However, it might make more sense for you to go room by room, or at least section by section, so that you don’t renovate faster than you can afford.


How much should I set aside in a home renovation budget?


In order for you to maximize your odds for renovation financing approval, you want to keep your costs in line with your home value. Don’t allow the cost of one room to exceed 10 to 15 percent of the value of your home, even if that room is the kitchen or master bathroom. If your home is worth $300,000, that means the maximum for one room should fall between $30,000 and $45,000.


As with any major expenditure, it is important to know how you will cover your home renovation budget. Whether you have saved up or you plan to apply for some sort of renovation financing, remember to keep your number below what you have available to spend. A line of credit or an equity take out mortgage are the most common.  A wise margin of error is between 10 and 20 percent because of unexpected costs. This could come from a number of areas. You do not want your project to be derailed due to a surprise in the plumbing beneath the house, a misunderstanding over the price on the countertop of your dreams, or an increase in the cost of lumber.


How do I make a home renovation budget?


First of all, figure out precisely what you want. Once you have listed everything you want to take place in the project, prioritize your wants as opposed to your needs. For example, if a kitchen cabinet upgrade is on your “want” list, then you don’t need to get that new countertop today, because you’re likely to have to tear that new countertop again when you get the new cabinet. Here are some helpful questions to ask:

  •       What is your ideal outcome for this project?
  •       What must happen for you to get to your ideal outcome?
  •       What areas are open to compromise?
  •       What areas would you splurge on to get what you want?

Next, it’s time to put together a detailed plan with estimates for the cost of each phase. Set up a spreadsheet with each part of the project, including the estimates for materials and labor costs  broken down. There are a number of websites out there that can help you with labor estimates, such as HomeAdvisor. Remember to set aside between a quarter and a third of your budget for labor costs.

Pick the finishes and fixtures that you want – these can add up. Include all the small details – faucets, knobs, paint, flooring, tile – and add in the taxes and shipping. Remember your appliances – and add in costs for delivery and installation, as well as the disposal of the appliances that you have now.

Will you be able to occupy your home during the renovation? If not, what will the costs of lodging be during the repair? Living for weeks without a functioning kitchen can be a major headache, for example.

Finally, it’s time to get bids from contractors. Get numbers from at least three companies in your area to get an accurate idea of costs. Interview each of them, and call their references. Get every detail about the project down in writing, and indicate how tight the budget is. Don’t go with the cheap bid, because remember that you tend to get what you pay for in terms of mistakes that can cost thousands of dollars to repair.

Once your home renovation budget is complete, if you can’t find financing from your bank, talk to one of our professionals at Amansad Financial. We help customers who have had difficulties getting financing from their own bank – and we want to help you too. Visit for a “No Obligation, No Credit-Check Assessment” today.

Get Started Today with our Fast Pre-Qualification Form!