GTA Realtor · Buy and Renovate · 2026
Buying a Fixer-Upper in Toronto: What to Check Before You Renovate
A fixer-upper can be the most affordable way into a Toronto neighbourhood you want, or the most expensive mistake you make. The difference is usually decided before you firm up the deal: whether the plan is allowed, what the previous owner did without a permit, and how the work will be paid for. This guide walks through those decisions in the order a buyer meets them, with every fee and rule linked to its official source.
What should you check before buying a fixer-upper in Toronto?
Four things, ideally while your offer is still conditional: whether the work you have in mind needs a City of Toronto building permit, whether past renovations on the property were permitted and inspected, what the condo corporation allows if it is a condo, and how you will finance the work. The City requires a permit for structural changes, new or enlarged openings, plumbing and HVAC work, and most basement finishing that changes structure, plumbing or adds a unit (the City of Toronto's "When do I need a building permit" page[1]).
The permit itself is rarely the big cost. Residential alteration permits in 2026 run $13.41 per m²[2], with a minimum of $214.79 (2026)[2]. Skipping it is what gets expensive: the City adds an extra fee equal to 50% of the permit fees[3], stops the work until a permit is issued, and may require finished work to be opened up for inspection.
This page covers the buyer's side of a renovation project. Construction methods, material choices and actual pricing belong in written quotes from licensed contractors.
01 · Before you firm up
Sizing up the work before you commit
Cosmetic wear is easy to price. What sinks fixer-upper budgets is what you cannot see on a showing: the age of the wiring, what the supply pipes are made of, the roof and foundation, and whether earlier renovations were done to code. The time to find out is during the conditional period, not after.
Ask for the permit history
A finished basement apartment or an opened-up kitchen wall should come with a building permit and a final inspection. Ask the seller for both. Unpermitted work can come back at you when you insure, refinance or sell; see selling a home with unpermitted renovations and how unpermitted work can void an insurance claim.
Get comparable quotes, not a ballpark
- Book a home inspection and have the inspector separate what must be fixed from what is simply dated.
- For major work, walk two or three contractors through the house and have each price the same written scope. Quotes on different scopes cannot be compared.
- Ask for line items: demolition, structural, electrical, plumbing and HVAC, materials, labour, permits and disposal, plus the schedule and payment stages.
- Carry a separate contingency line. Older houses hide surprises behind the drywall, and how large that line should be depends on the age of the house and the scope, so settle it with your contractor.
- If the renovation budget shapes what you can offer, line up the quotes and the financing before waiving conditions.
You will not find "a kitchen costs X" figures on this page. Toronto renovation pricing varies with the house, the scope and the trade, and there is no official benchmark for it. Two or three quotes on the same scope are a better guide than any average. For what to look at during a showing, see the showing checklist that matters more than the finishes.
02 · City of Toronto
Which renovations need a building permit in Toronto
As a rule, the City wants a permit whenever work touches structure, plumbing or heating, or changes how the building is used. Work that needs no permit still has to meet the Zoning By-law. The full lists are on the City of Toronto's "When do I need a building permit" page[1].
| Usually needs a permit | Usually does not |
|---|---|
| Removing or adding walls, other structural changes | Cabinetry and millwork |
| New window or door openings, or enlarging existing ones | Replacing windows or doors in the same opening of a single-unit house |
| Basement work with structural, plumbing or HVAC changes, a new entrance, or a second suite | Finishing a basement with no structural change, no new unit and no new plumbing |
| Installing or altering heating, plumbing or backwater valves | Replacing a furnace or boiler, adding air conditioning or a water heater |
| Raised decks, additions, garages, sunrooms | Re-roofing with no structural work, adding insulation |
| Demolition, or a change of use such as converting a house to multiple units | Repairing or replacing plumbing fixtures, adding a sump pump |
What the permit costs in 2026
Toronto charges a service index multiplied by floor area. The 2026 rates a fixer-upper buyer is most likely to meet: residential alterations and renovations at $13.41 per m²[2]; basement finishing at $6.20 per m²[2]; underpinning at $12.37 per linear metre[2]; decks, porches and carports at a flat $214.79[2]; plumbing fixtures at $23.20 per fixture (single-family dwelling)[2]; and a minimum of $214.79 (2026)[2] for any permit. A Zoning Applicable Law Certificate for alterations to a house is $644.38[2].
Review times and inspections
Under the Ontario Building Code, the City has 10 days[4] to decide a complete permit application for a detached, semi-detached or row house (the City describes it as 10 business days). Projects that need a zoning variance take longer. Once work starts, you book inspections at the inspection stages the City lists[5], such as framing, insulation and vapour barrier before drywall, and plumbing and HVAC rough-ins. Closing a wall before it passes can mean opening it again.
Electrical work goes through ESA
Electrical work is not covered by the building permit. The Electrical Safety Authority lets homeowners do their own electrical work, but you must file a notification of work (a permit) with ESA before starting[6] and have the work reviewed when it is done, and friends or family cannot do it for you. Anyone you hire needs an electrical contractor licence[7]. More in doing your own electrical work in Ontario.
The downside of skipping a permit goes beyond the surcharge. Under the Building Code Act, an individual can be fined up to $50,000 for a first offence and up to $100,000 for a subsequent one[8]. And the City is clear that the owner is responsible, even when a contractor said no permit was needed.
03 · Condos
Renovating a condo: the corporation comes first
A condo fixer-upper adds a second rulebook. Even in-suite work like new flooring or a kitchen usually goes through the corporation's rules[9], which commonly cover working hours, elevator bookings and flooring sound standards. Every building is different, so read them before you buy.
- Changes to common elements, such as balconies, exterior walls or shared pipes, need a board resolution plus a written agreement with the corporation, registered on the unit's title, and in some cases notice to all owners[9] under section 98 of the Condominium Act.
- Once registered, the agreement binds the unit and is enforceable against later owners[9]. When buying a resale unit, check whether a past owner signed one and what repair duties came with it.
- By law, the corporation is not required to insure improvements made to a unit beyond the standard unit[9]. Your own unit policy has to cover the value of your renovation, so tell your insurer when the work is done.
- Before firming up, review the status certificate and the rules for restrictions on flooring, kitchen and bathroom changes and work hours. See what condo documents can restrict.
Condo renovation contracts need a few clauses houses do not: work hours, protection of common areas, debris removal and neighbour complaints. See seven notes every condo renovation contract should include.
04 · Financing
Paying for the renovation
Purchase plus improvements
A purchase-plus-improvements mortgage folds the renovation into the purchase loan. CMHC's version, called Improvement, insures loans of up to 95% of the as-improved value[10] for an owner-occupied one- or two-unit home. The lending value is the lesser of the as-improved value and the as-is value plus the cost of improvements[10], which is why over-improving does not stretch what you can borrow. The property value must be below $1,500,000[10]. Lenders set their own rules on how the renovation funds are released and what quotes they need; see purchase plus improvements explained.
Adding a suite later
Toronto says secondary suites are permitted in all residential zones[11], and allows multiplexes of up to four units city-wide (six in some wards)[11]. If you plan to add a rental unit after buying, CMHC insures refinances for owner-occupied homes on these terms: up to 90% of the as-improved value, property value below $2,000,000, up to 4 units[12]. The federal Canada Secondary Suite Loan Program announced in 2024 will not be implemented[13], according to Budget 2025, so do not build a budget around it even though older articles still describe it.
City of Toronto energy loans
For energy upgrades such as windows, insulation and heat pumps, the City's Home Energy Loan Program (HELP) lends up to $125,000, capped at 10% of the property's current value assessment, repaid through the property tax bill[14]. Rates are reset periodically; use the ones on the City's page.
05 · Credits and rebates
Tax credits and rebates still open in 2026
Only programs the official pages show as active on the verified date are listed.
| Program | Amount | Who it suits |
|---|---|---|
| Multigenerational Home Renovation Tax Credit (MHRTC) | 14.5% of costs, up to $7,250 (2025 tax year)[15]; up to $50,000 of qualifying expenditures per qualifying renovation[15] | Building a self-contained unit for a relative who is 65+ or eligible for the disability tax credit |
| Home Accessibility Tax Credit (HATC) | up to $20,000 of eligible expenses per year[16], credited at the lowest federal rate | Accessibility work for someone 65+ or eligible for the disability tax credit |
| Home Renovation Savings Program | Heat pumps up to $12,000 (eligibility depends on how the home is heated)[17]; windows $100 per rough opening[17] | Ontario homeowners making energy upgrades. Note: for the assessment stream, the post-renovation audit must be booked by Nov. 30, 2026 and done by Dec. 31, 2026, work finished before the first audit does not count, and the total is capped at $5,000 for gas-heated homes ($10,000 for other heating)[18]. A recent buyer should check the timing still works |
| Toronto Basement Flooding Protection Subsidy | up to $6,650 per property for work completed on or after Nov. 12, 2025, at up to 80% of each invoice[19] | Toronto owners installing backwater valves, sump pumps and similar protection |
| Toronto HELP loan (a loan, repaid) | up to $125,000, capped at 10% of the property's current value assessment, repaid through the property tax bill[14] | Toronto owners making energy upgrades who are comfortable repaying through property tax |
The MHRTC and HATC rates follow the lowest federal income tax rate, so the 2026 figures will differ from 2025; use the CRA's figures for the year you claim. The Canada Greener Homes Grant is closed; December 31, 2025 was the last day to submit documents[20]. More on the MHRTC in the multigenerational renovation credit.
Gut renovations and GST/HST
Renovate deeply enough and the CRA treats the house as new. A substantial renovation means 90% or more of the interior removed or replaced[21]. An owner who substantially renovates their own home may qualify for the GST/HST new housing rebate: 36% of the federal part, up to $6,300[21], full when the fair market value of house and land at substantial completion is $350,000 or less, none at $450,000 or more[21], which most Toronto homes exceed; and 75% of the Ontario part, up to $16,080 when no HST was paid on the land, as with a resale house ($24,000 if it was)[21]. First-time buyers who buy a home a builder substantially renovated, or who substantially renovate their own first home with work started on or after March 20, 2025 and before 2031, and substantially completed before 2036[22], may qualify for the first-time home buyers' GST/HST rebate: federally up to $50,000 (based on the fair market value of house and land when the work is done: full at $1M or less, reduced between $1M and $1.5M, none at $1.5M or more)[23], plus up to $80,000 of the provincial part[21]. If you renovate it yourself, you generally must not live in the house before the work is substantially complete. The conditions are detailed; confirm with an accountant before work starts.
06 · Contractors
Hiring a contractor: contracts, holdbacks and liens
- Put the scope, material specifications, price, schedule, payment stages and who pulls the permit in a written contract.
- Ontario's Construction Act requires you to hold back 10%[24] of the price as work is supplied. Keep the holdback until every possible lien period has expired or the liens are dealt with. The contractor's lien expires 60 days after the earlier of publication of substantial performance and the contract being completed, abandoned or terminated[24]; subcontractors' and suppliers' periods run on their own triggers.
- The holdback protects you if the general contractor does not pay a subcontractor or supplier, who could otherwise register a lien on your title. Pay in full with no holdback and you may end up paying twice. If a lien turns up before a sale, see clearing a contractor's lien before closing.
- Per the WSIB, a resident or occupant of a home (or a member of their family) who hires a contractor for home repairs or renovations does not need a clearance certificate[25]. If you are not living there yet, confirm with the WSIB. Either way, ask for proof of the contractor's commercial liability insurance.
- Renovations are not new-home warranty work: Tarion excludes alterations, deletions or additions made by the homeowner (its warranty is for new homes)[26], and the HCRA notes that renovating or upgrading an existing home typically does not make it a "new" home[27]. Your protection is the contract, the contractor's own warranty and your inspection at handover.
07 · The sequence
How a renovation usually unfolds
The order shifts with the project, but a whole-house refresh usually follows the steps below. Buyers have the most control over the first two; get them wrong and every later step pays for it.
| Stage | What happens | Buyer's note |
|---|---|---|
| 1. Plan and price | Set goals and budget, draw plans, collect comparable quotes | Ideally done inside the conditional period |
| 2. Permits and approvals | Submit drawings and wait for review; condos also need corporation sign-off | Count review time in the schedule |
| 3. Demolition | Protect what stays, dispose of debris properly | Opened walls are where the contingency gets used |
| 4. Structure and mechanicals | Structural work, rough-in plumbing, HVAC and electrical (ESA) | Inspections before walls close |
| 5. Insulation and moisture | Walls, attic, basement and bathroom waterproofing | Check rebate conditions before buying equipment |
| 6. Finishes | Drywall, paint, flooring, doors and windows | Pay by contract milestones, keep the holdback |
| 7. Kitchen, baths, lighting | Cabinets, counters, fixtures, appliances | Specifications as written in the contract |
| 8. Handover | Final inspections, deficiency list, cleaning | Keep final inspection records and warranties for resale |
08 · When you sell
How the renovation follows you to resale
- Keep permits and final inspections. The next buyer's lawyer and lender will ask; see unpermitted renovations at sale.
- Flipping a gut-renovated house can attract HST. According to the CRA, if you intended to sell, you may be the builder for GST/HST purposes and the sale may be taxable[21]; see when a renovated resale home can owe HST.
- If the house is not your principal residence (a rental, for example), capital expenditures such as additions and improvements count toward the cost base; maintenance and repairs do not[28]. Keep the invoices. How a sale is taxed depends on your circumstances, so ask an accountant.
- Not every dollar comes back at sale; see which pre-sale renovations pay off.
Frequently asked questions
Do I need a permit to renovate a house in Toronto?
It depends on the work. The City requires a building permit for structural changes, new or enlarged openings, additions, plumbing and HVAC work, and converting a house to more units. Cabinetry, painting, same-opening window replacement and furnace replacement usually do not need one. Electrical work is handled separately by ESA. When in doubt, check the City of Toronto's "When do I need a building permit" page[1] or ask Toronto Building.
How much is a renovation permit in Toronto in 2026?
Fees are calculated by floor area: $13.41 per m²[2] for residential alterations and $6.20 per m²[2] for basement finishing, with a minimum of $214.79 (2026)[2]. Starting without a permit adds an extra fee equal to 50% of the permit fees[3] once the City finds out.
Can I add renovation costs to my mortgage when I buy?
Often, if your lender approves it, through a purchase-plus-improvements mortgage. CMHC's Improvement product insures loans of up to 95% of the as-improved value[10], based on the lesser of the as-improved value and the as-is value plus the cost of improvements[10], where the property value is below $1,500,000[10]. How the funds are released and what quotes are required is up to the lender, so sort it out before your conditions expire.
Is a fixer-upper worth it in Toronto?
It can be, if the numbers work before you buy rather than after. The deals that go wrong usually skipped one of four checks: whether the planned work is allowed and permittable, whether earlier work was permitted, what condo rules restrict, and whether financing covers the renovation. Comparable written quotes during the conditional period are the best protection against a budget that only looked good on paper.
What renovation rebates are available in Ontario in 2026?
Still active on the verified date: the Multigenerational Home Renovation Tax Credit (14.5% of costs, up to $7,250 (2025 tax year)[15]), the Home Accessibility Tax Credit (up to $20,000 of eligible expenses per year[16]), the Home Renovation Savings Program (heat pumps up to $12,000 (eligibility depends on how the home is heated)[17]) and Toronto's Basement Flooding Protection Subsidy (up to $6,650 per property for work completed on or after Nov. 12, 2025, at up to 80% of each invoice[19]). The Canada Greener Homes Grant is closed; December 31, 2025 was the last day to submit documents[20].
Renovation planned. Now the rest of the budget
The renovation is one line in the total cost of buying. Add closing costs and financing before you decide what to offer.
Sources
- City of Toronto — When Do I Need a Building Permit · https://www.toronto.ca/services-payments/building-construction/building-permit/before-you-apply-for-a-building-permit/when-do-i-need-a-building-permit/ · verified 2026-10-18
- City of Toronto — Building Permit Fees (effective Jan. 1, 2026) · https://www.toronto.ca/services-payments/building-construction/building-permit/before-you-apply-for-a-building-permit/building-permit-fees/ · verified 2026-10-18
- City of Toronto — Working Without a Permit · https://www.toronto.ca/services-payments/building-construction/building-permit/after-you-apply-for-a-building-permit/building-inspections/working-without-a-permit/ · verified 2026-10-18
- City of Toronto — Toronto Building service standards (Building Code, Division C, Table 1.3.1.3) · https://www.toronto.ca/city-government/accountability-operations-customer-service/city-administration/staff-directory-divisions-and-customer-service/toronto-building/toronto-building-complaints-compliments/ · verified 2026-10-18
- City of Toronto — When to Call for Inspection of Small Buildings · https://www.toronto.ca/services-payments/building-construction/building-permit/after-you-apply-for-a-building-permit/building-inspections/about-building-inspections/when-to-call-for-inspection-of-small-buildings/ · verified 2026-10-18
- Electrical Safety Authority — DIY Electrical Work · https://esasafe.com/compliance/diy-electrical-work/ · verified 2026-10-18
- O. Reg. 570/05, Licensing of Electrical Contractors and Master Electricians, s. 3 (Ontario e-Laws) · https://www.ontario.ca/laws/regulation/050570 · verified 2026-10-18
- Building Code Act, 1992, s. 36(3) (Ontario e-Laws) · https://www.ontario.ca/laws/statute/92b23 · verified 2026-10-18
- Condominium Act, 1998, s. 58 (Ontario e-Laws) · https://www.ontario.ca/laws/statute/98c19 · verified 2026-10-18
- CMHC — Improvement (mortgage loan insurance) · https://www.cmhc-schl.gc.ca/professionals/project-funding-and-mortgage-financing/mortgage-loan-insurance/mortgage-loan-insurance-homeownership-programs/improvement · verified 2026-10-18
- City of Toronto — Expanding Housing Options in Neighbourhoods · https://www.toronto.ca/city-government/planning-development/planning-studies-initiatives/expanding-housing-options/ · verified 2026-10-18
- CMHC — Refinance (secondary suites) · https://www.cmhc-schl.gc.ca/professionals/project-funding-and-mortgage-financing/mortgage-loan-insurance/mortgage-loan-insurance-homeownership-programs/refinance · verified 2026-10-18
- Budget 2025, Annex 3 · https://budget.canada.ca/2025/report-rapport/anx3-en.html · verified 2026-10-18
- City of Toronto — Home Energy Loan Program (HELP) · https://www.toronto.ca/services-payments/water-environment/net-zero-homes-buildings/homeowner-financing/home-energy-loan-program-help/ · verified 2026-10-18
- CRA — Multigenerational Home Renovation Tax Credit · https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/multigenerational-home-renovation.html · verified 2026-10-18
- CRA — Line 31285 Home accessibility expenses · https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-31285-home-accessibility-expenses.html · verified 2026-10-18
- Home Renovation Savings Program (Enbridge Gas and Save on Energy) · https://www.homerenovationsavings.ca · verified 2026-10-18
- Enbridge Gas — HRSP Assessment additional eligibility requirements (Nov 2025) · https://www.enbridgegas.com/-/media/home-renovation-savings/pdf/HRSP-Assessment-Additional-Program-Eligibility-Requirements.pdf · verified 2026-10-18
- City of Toronto — Basement Flooding Protection Subsidy Program · https://www.toronto.ca/services-payments/water-environment/environmental-grants-incentives/basement-flooding-protection-subsidy-program/ · verified 2026-10-18
- Natural Resources Canada — Canada Greener Homes Initiative · https://natural-resources.canada.ca/energy-efficiency/home-energy-efficiency/canada-greener-homes-initiative · verified 2026-10-18
- CRA — RC4028 GST/HST New Housing Rebate · https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4028/gst-hst-new-housing-rebate.html · verified 2026-10-18
- CRA — GST/HST Memorandum 19.3.10 (October 2026), para. 57 · https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/19-3-10/first-time-home-buyers-gst-hst-rebate.html · verified 2026-10-18
- CRA — First-Time Home Buyers' GST/HST Rebate · https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/gst-hst-rebates/first-time-home-buyers-gst-hst-rebate/what-rebate.html · verified 2026-10-18
- Construction Act, s. 22(1) (Ontario e-Laws) · https://www.ontario.ca/laws/statute/90c30 · verified 2026-10-18
- WSIB — Clearance certificate FAQs · https://www.wsib.ca/en/clearancefaqs · verified 2026-10-18
- Tarion — What Is Not Covered · https://www.tarion.com/homeowners/what-is-not-covered · verified 2026-10-18
- HCRA — Licensing · https://hcraontario.ca/licensing-compliance/licensing/ · verified 2026-10-18
- CRA — Capital gains definitions · https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-12700-capital-gains/definitions-capital-gains.html · verified 2026-10-18
Permit fees, tax credits and rebate programs change or end; the issuing body's own page is the final word. Whether your project needs a permit or qualifies for a credit is decided by the City, the CRA or the program administrator. General information only, not legal, tax, mortgage or construction advice.
