Retiring With a Mortgage: Canadas New Reality

Your home once checked all the boxes. But now, something’s changed. Maybe you’ve outgrown the space. Maybe it’s just too much to maintain. Or maybe your needs have simply evolved. That raises a big question: should you renovate your current home, or is it time to move on? The answer isn’t the same for everyone. But weighing the right factors can help you avoid costly regrets and make a move or a makeover that fits your future. Let’s break it down. 1. Renovations Can Cost More and Take Longer Than You Expect On paper, renovating might seem cheaper than buying a new home. But once you start opening walls or chasing permits, costs can escalate quickly. Surprise expenses, delays, and expanding project scopes are common. What starts as a simple kitchen update can turn into six months of living in a construction zone with a budget that’s gone up by 30 percent. Even with upgrades, you’re still limited by things like layout, lot size, or local bylaws. New finishes won’t fix structural constraints. Renovating makes sense if you love your location and the home has good bones. But if you’re trying to squeeze a major lifestyle change into a space that can’t support it, moving may be the better choice. 2. Relocating Lets You Reset the Layout, Location, and Lifestyle Buying a new home gives you more than just different square footage. It can also solve problems that a renovation can’t. Maybe you need a home office and a guest room. Or a bigger backyard. Or a shorter commute. Relocating gives you the chance to find a property that already meets those needs instead of trying to force them into your current home. It’s also a chance to move into a newer build with modern features, better energy efficiency, or access to a preferred school district. You get a fresh start without the hassle of construction. Selling and buying can also unlock the equity in your home, giving you more flexibility in how you fund your next move. 3. Renovations Don’t Always Boost Resale Value Not every renovation will increase your home’s market value. While kitchens and bathrooms often pay off, projects like finishing a basement or adding a sunroom might not return what you put in. If your upgrades make your home the most expensive one in the neighborhood, it could actually hurt your resale potential down the line. Ask yourself if you’re renovating to improve your quality of life or just trying to justify staying put. If your goal is long-term comfort, the investment might make sense. But if you’re spending big to patch short-term frustrations, moving could be the smarter long-term play. 4. Moving Comes with Costs, but It Might Be Simpler Yes, there are expenses involved in relocating. Realtor commissions, closing fees, land transfer taxes, and the cost of the move all add up. But unlike a renovation, moving comes with a clear timeline and a defined outcome. You know what you’re buying, when you’ll get it, and what it will cost. That kind of certainty can make a big difference, especially if you’re juggling kids, remote work, or planning for retirement. Another bonus: many newer homes need fewer immediate fixes. You may not have to lift a hammer for years after moving in. Final Word If your home no longer suits your needs, you have two solid options—but very different outcomes. Choose to renovate if you love your neighbourhood, your home has real potential, and you’re ready for the temporary disruption. Consider relocating if you want a better fit, a cleaner slate, or a stronger financial position. Either way, speak with a mortgage advisor and a realtor before making a final decision. They can help you understand your options, crunch the numbers, and figure out what makes the most sense for your situation. With the right guidance, your next move can do more than just solve today’s problems. It can help shape the life you want moving forward.