How to Plan a Home Renovation in Ontario, Step by Step

Planning a renovation in Ontario means settling a set of decisions in a fixed order, because each one depends on the one before it. Goals come first, then a budget with room for surprises, then drawings, then permits, then a contractor and a written contract, then the work and its inspections. Skip a step or take them out of order and the cost shows up later, usually when a wall is already open.

The sequence below is the one that holds up in practice. It applies to a kitchen, a bathroom, a basement, an addition or a whole-house job; only the scale changes.

The order of decisions, start to finish

1. Set the goal and the priorities

Write down what the renovation has to solve: a bathroom that no longer works for the household, a basement that is cold and unused, a kitchen with too little storage. Then rank what matters: more space, better layout, updated services, finish quality. A ranked list is what keeps later choices consistent, and it is what a designer or contractor will ask for at the first meeting.

Decide too whether the household will stay in the house during the work. That answer shapes the schedule and the sequence of trades.

2. Work out the budget in words, not just a number

A renovation budget has three parts: the work itself, a contingency for what is found once walls are open, and the cost of living through the work. In an older house the contingency matters most, because hidden conditions are normal rather than exceptional.

What drives cost is fairly predictable: how much plumbing and electrical is moved, whether structural work is involved, the quality of finishes, and how much of the work is custom. Moving a sink is cheaper than moving a bathroom. Keeping a kitchen layout and replacing cabinets in the same place is cheaper than reconfiguring it. Ask each contractor to price the same scope so the numbers can be compared.

3. Get drawings and a design

Drawings are the common language between homeowner, contractor and building department. For a permit, drawings must be prepared by a designer registered with a Building Code Identification Number (BCIN) in the right category, a licensed architect, or a professional engineer. An owner may prepare drawings for their own house. Structural elements, such as a beam for a removed load-bearing wall, are often designed or reviewed by a structural engineer.

This is the stage to settle layout, materials and fixtures, because changes after the permit is issued cost more and take longer.

4. Find out what permits the work needs

Permits are the step most often left too late. A building permit is generally needed for an addition or a new storey; structural changes such as removing or altering a load-bearing wall, adding a beam, or making a new or larger opening in an exterior or load-bearing wall; finishing a basement where walls, plumbing or a bathroom are added; creating a second unit; adding or moving plumbing fixtures and drains; underpinning or lowering a basement; installing a wood-burning stove or fireplace; and many decks. Cosmetic work usually does not need one.

Electrical work needs an ESA notification of work and inspection, and paid electrical work must be done by a Licensed Electrical Contractor, who files the permit. Gas work must be done by a TSSA-registered contractor. Plumbing changes need a plumbing permit and a licensed plumber. Structural changes need a design by a qualified designer or engineer and a building permit.

Rules differ by municipality, so confirm the list with the building department before work starts. When a renovation needs a building permit explains the categories in more detail.

5. Check zoning and any special approvals

A building permit is issued only if the plans meet the zoning by-law and other applicable law. Zoning sets setbacks, height, lot coverage and use. Where a plan does not meet the by-law, the owner can apply to the municipality’s Committee of Adjustment for a minor variance. Properties designated under the Ontario Heritage Act, or in a heritage conservation district, need heritage approval for many exterior changes. Lots near rivers, streams, wetlands, shorelines or valleys may be regulated by a conservation authority, whose permit is needed before building there.

6. Choose the contractor

Get written estimates from at least three contractors, all pricing the same scope. Ask for their licence and insurance details, for references on similar work, and who will be on site day to day. Check that the trades they use are licensed for electrical, gas and plumbing work. How to choose a renovation contractor in Ontario sets out the questions worth asking.

7. Put the agreement in writing

Under Ontario’s Consumer Protection Act, 2002, a home renovation contract must be in writing, and the threshold is very low, so almost every renovation contract falls under it. The province advises that it include the contractor’s name, address and contact details; a detailed description of the work and materials; warranties; the total price and payment terms; start and completion dates; the payment schedule and deposit; who cleans up; and which trades are subcontracted and who pays them.

A contractor may not charge more than 10% above a written estimate unless the homeowner agrees to new or different work or a new price. A contract signed in the home can be cancelled for any reason within 10 days of receiving the written copy. The province recommends a deposit of no more than 10% of the contract price. Any change to scope, price or schedule should be written and signed by both sides before the extra work is done. The renovation contract checklist for Ontario homeowners lists what to look for line by line.

8. Run the work and the inspections

The permit names inspections at stages of the work, for example footings and foundation, framing, insulation and air barrier, plumbing, and a final inspection. Covering work before it is inspected can mean opening it up again. The permit card must be posted where it is visible. Before any digging, request utility locates through Ontario Dig Authority (formerly Ontario One Call); it is free, required by law, and needs at least 5 business days.

9. Close out

Close-out means the final inspection, the contractor’s warranty documents, the manuals for appliances and fixtures, and a record of what was done behind the walls. Keep the drawings and the permit documents with the house papers.

The stages, and who does what

What the permit process actually involves

Once a permit application is complete, the Building Code requires the municipality to issue or refuse a permit for a house within 10 business days. Incomplete applications do not start the clock, and many first submissions are returned for more information, so the drawings need to be complete before they go in.

A municipality may revoke a permit if work has not seriously started within 6 months of the permit being issued, or if work is suspended or discontinued for more than 1 year. That matters when a project is phased over a long period.

Paying for the work without losing control

Ontario’s Construction Act lets anyone who supplies work or materials and is not paid register a construction lien on the property’s title. Every payer, homeowners included, must hold back 10% of each payment. A lien must generally be preserved within 60 days and then perfected within 90 days after that. The holdback is released when the lien period has passed with no liens registered. A subcontractor can lien a home even when the general contractor has been paid in full; the holdback is the owner’s protection. How this applies to one contract is a question for a lawyer.

HST at 13% applies to renovation labour and materials, so a quote should say whether HST is included. An addition or a major improvement can also change a home’s assessment by MPAC, which affects property tax.

Older homes: what to settle before demolition

In a house built before 1990, suspect materials should be tested for asbestos before demolition, and removal done by trained asbestos professionals; vermiculite insulation should not be disturbed. A home built before 1960 probably contains lead-based paint, and sanding, scraping or burning old paint releases lead dust. Aluminum branch-circuit wiring was used in some homes in the 1960s and 1970s, and older wiring of any kind should be assessed by a Licensed Electrical Contractor before walls are closed.

Ontario’s Fire Code requires a working smoke alarm on every storey and outside all sleeping areas, and, in any home with a fuel-burning appliance, a fireplace or an attached garage, a carbon monoxide alarm next to each sleeping area and on every storey. A renovation is the moment to bring those up to date.

What goes wrong when steps are skipped

The common failures are predictable, and most come from doing a later step before an earlier one.

• Buying materials before the drawings are settled. Fixtures chosen before the layout is fixed get returned, or force a change order.
• Signing a contract before the permit is sorted out. The scope then changes after signing, and the price moves with it.
• Choosing a contractor on price alone. The lowest estimate often reflects a smaller scope, not better value.
• No contingency. The first hidden problem, an undersized beam or old wiring, stops the job while money is found.
• Covering work before inspection. The building department can require it to be opened again.
• Verbal change orders. Without a signed change, the scope, price and schedule drift apart.
• Paying ahead of the work. The 10% holdback and a payment schedule tied to completed stages are the protection.
• Late selections. A delayed tile or cabinet choice idles the trades and pushes the completion date.

Questions to ask before signing anything

• Who is applying for the building permit, and who is named on it?
• Which trades are licensed for electrical, gas and plumbing work, and who files their permits?
• What is the payment schedule, and how does it relate to completed stages?
• What is excluded from the price?
• Who is on site day to day, and how are changes approved?
• What warranty comes with the work, and in what form?

Tarion administers the warranty on new homes built by licensed builders, but it does not cover renovations, additions to an existing house or remodelling. For those, the protection is the written contract, the contractor’s own warranty and insurance. How long a renovation takes helps set a realistic completion date for each kind of project.