Over the past few years, the way we live and work has undergone a major shift. More Canadians are embracing hybrid work, seeking a better work-life balance, and looking for ways to maximize the value of their homes. With rising home prices and higher interest rates, many homeowners are choosing to improve rather than move.
A common question we hear is: Which renovations offer the highest return on investment?
Whether you’re buying a fixer-upper or upgrading your current space to enhance your lifestyle, it’s crucial to understand which renovations can increase your home’s value. According to the Appraisal Institute of Canada (AIC), the top four renovations that offer the highest return on investment are:
Updated Kitchen: As the heart of the home, a stylish, functional kitchen remains one of the best investments. Modern layouts, energy-efficient appliances, and high-quality finishes are key selling points in 2025.
Spa-Like Bathroom: Luxurious, functional bathrooms—think walk-in showers, freestanding tubs, and modern vanities—continue to attract buyers and improve day-to-day living.
Fresh Paint: Whether indoors or outdoors, a fresh coat of paint provides an instant facelift, making your home feel clean, modern, and well-maintained.
Refreshed Décor and Fixtures: Small updates can make a big difference. Upgraded lighting, modern hardware, refinished floors, and new countertops or backsplashes can transform your space.
In today’s market, a few key considerations can help you maximize your renovation investment:
Know Your Neighborhood: Avoid renovations that may overprice your home compared to others in your area.
Appeal to a Broad Audience: Focus on updates with timeless appeal to attract more buyers when it’s time to sell.
Declutter Before You Sell: A clean, organized space allows buyers to imagine themselves living there.
Don’t forget about essential maintenance. AIC reminds us that investing in critical updates—such as replacing the roof, upgrading heating and cooling systems, installing energy-efficient windows and doors, and modernizing electrical systems—is necessary to maintain your home’s value over time.
Thinking about financing your renovation? A professional mortgage broker can help you explore options such as mortgage refinancing, a home equity line of credit, a second mortgage, or a personal loan to fund your project.
If you’re ready to make your renovation dreams a reality and build long-term value, I’d be happy to discuss your options.
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