CIBC Poll: Canadian homeowners spending $15,000 on average for home
renovations in 2013
HGTV's Scott McGillivray offers advice on keeping your renovation budget in
TORONTO, April 22, 2013 /CNW/ - A new CIBC (TSX: CM) (NYSE: CM) Poll conducted
by Harris/Decima reveals more than one-third of Canadian homeowners plan to
take on some form of home renovation project this year, with an average
expected renovation cost of just over $15,000.
Highlights of the poll include:
-- $15,300 is the amount Canadian homeowners say they will spend
on their home renovations this year, on average
-- 39 per cent of Canadian homeowners say they plan to renovate
their home in the next 12 months
-- Among Canadian homeowners planning to renovate, Alberta
homeowners plan to spend the most on their home renovations
this year ($22,900 on average), while Atlantic Canadians say
they plan to spend among the least ($11,000 on average)
-- Regionally, Alberta residents are among the most likely (52 per
cent) to say they plan to renovate their home in the next 12
months, while British Columbians are among the least likely
with only 25 per cent of home owners saying they plan to
-- Among demographics, Canadians aged 45-54 plan to spend among
the most on their home renovations this year ($18,300 on
average), nearly $3,000 more than the national average
"Whether it's replacing an old roof or updating a kitchen, home renovations
can help you get more out of your property, but you do need to consider how
the costs will fit with your overall financial plan," said Colette Delaney,
Executive Vice President of Mortgage, Lending, Insurance and Deposit Products,
Previous CIBC research shows that Canadians named paying down debt as their
top financial priority for 2013, suggesting that those Canadians taking on a
home renovation will need to keep a close eye on their renovation budget to
stay on track towards their financial goals.
"Most people taking on a renovation have a clear vision of how they want their
home to look when it's done. Our message is you need the same clear plan for
repaying any debt you might incur along the way," added Ms. Delaney.
HGTV's Scott McGillivray Notes that Planning is Key to a Successful Renovation
Scott McGillivray, host of HGTV's "Income Property", also stressed the
benefits of planning when it comes to making improvements to your home while
managing your budget.
"The most important part of a renovation is the planning. It sounds cliché,
but planning really is half the battle. In my experience, the homeowners who
plan ahead are also more likely to be happy with the end result, and are
better at sticking to their budget."
For Canadians looking to stretch their renovation budget, it's important to
prioritize your renovations by mapping out where you are going to invest
within your home, and how much money you will need to allocate to each job.
"Kitchens and bathrooms are always value-adds, so if you're prioritizing your
renovations and looking to make your dollars go further, plan on doing those
rooms first," added Mr. McGillivray "I also like to add an income suite in
where possible, but that's a personal choice."
Renovation Tips from Scott McGillivray:
To make sure you stick to your renovation budget, while getting the greatest
return on your investment, Mr. McGillivray offers the following tips:
-- Plan the Work: You don't want to be in the middle of a home
renovation project when you realize you are unable to meet your
timeline or budget, especially if you are operating with a
-- Set your Priorities: If you are taking on multiple renovations,
decide which ones are the most important to you, and tackle
those first. Kitchens and bathrooms make good choices for a
renovation because of the potential to add value to your home.
-- Expect the Unexpected: Regardless of how much you plan in
advance, leave a cushion in your budget for the unexpected.
You should aim to have a cushion of 20 per cent to over any
-- Get it in Writing: You should always get quotes from
contractors before any work starts, have a signed agreement on
the scope of work they will be doing and everything that's
included. You also need to be clear on what's not included so
that you'll know about any expenses that will be your
Financing Advice from CIBC:
To help fund their home renovation, CIBC offers the following tips:
-- Draw on Savings - if you are able to draw on savings to fund
part or all of your renovation, it may be the best option. Be
sure to leave yourself some emergency funds in your savings
account so that you still have a cushion against other
unexpected expenses that can arise.
-- Choose a Low Cost Borrowing Option:
o A secured line of credit, like CIBC's Home Power Plan, offers
Canadians with equity in their homes a low cost borrowing solution
that can be used to finance expenses such as home improvements.
CIBC's Home Power Plan provides Canadians the fixed payment
schedule of a mortgage with the flexibility of a line or credit,
and the ability to access the funds whenever you need them, should
you need to make a future repair or in the event of an emergency.
o An Unsecured Line of Credit (UPLC) is another option that can be
used to finance home renovations. An Unsecured Line of Credit
represents a good option for borrowing of smaller amounts with a
plan in place to repay the amount owing.
KEY POLL FINDINGS
On average, amount Canadians homeowners planning to renovate say they will
spend on their home renovations in the next year, by region:
Atlantic Canada $11,000
Manitoba and Saskatchewan $20,400
British Columbia $19,000
Percentage of Canadians who say they plan to renovate in the next 12 months,
Atlantic Canada 39%
Manitoba and Saskatchewan 37%
British Columbia 25%
*Each week, Harris/Decima interviews just over 1000 Canadians through teleVox,
the company's national telephone omnibus survey. These data were gathered in a
sample of 1,006 Canadians between January 24 - 28, 2013. A sample ofthis
size has a National margin of error of +/-3.1%, 19 times out of 20
CIBC is a leading North American financial institution with nearly 11 million
personal banking and business clients. CIBC offers a full range of products
and services through its comprehensive electronic banking network, branches
and offices across Canada, and has offices in the United States and around the
world. You can find other news releases and information about CIBC in our
Press Centre on our corporate website at www.cibc.com
Kevin Dove, Communications & Public Affairs, CIBC 416-980-8835
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CO: Canadian Imperial Bank of Commerce
NI: FIN ECOSURV ECO
-0- Apr/22/2013 10:00 GMT
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