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Thinking about buying a fixer-upper in Toronto? Smart move.
With the average price of a GTA house above $1 million, a fixer-upper can be your ticket to getting into the market – or your dream neighbourhood. But you need to know what to look for if you want to avoid costly mistakes. Trust me – HGTV doesn’t tell you the whole story.
We’ve guided countless buyers through assessing and buying fixer-upper properties. Below, our step-by-step guide to assessing which property to buy and practical advice to help you make the right decision.
What Makes a True Fixer-Upper?
There’s a big difference between a dated house and a true fixer-upper. That 1970s kitchen with orange countertops? That’s cosmetic.
True fixer-uppers are homes that require significant work to make them livable or bring them up to current standards. They might have outdated knob-and-tube electrical wiring, ancient plumbing, foundation issues and a roof that hasn’t been replaced since 1985. When you renovate a fixer-upper, you can expect to pay tens of thousands of dollars in sexy – and unsexy – renovations.
Fixer-Upper Housing Options
We’re lucky: in Toronto, we can find fixer-uppers that are houses, condos, and everything in between. Here’s how to assess that potential across different property types:
Detached Homes
Detached homes typically offer the most renovation potential because you control the entire structure. Key considerations:
- Foundation work: $20,000-$40,000+ for major repairs
- Roof replacement: $8,000-$20,000, depending on roof size and materials
- Electrical upgrade from knob-and-tube: $10,000-$25,000
- Plumbing replacement: $15,000-$30,000
- HVAC system: $12,000-$20,000 for new furnace and AC
Pro tip: Look for homes with good “bones” – solid foundation, newer roof, and updated electrical. These big-ticket items eat into your renovation budget fast.
Semi-Detached and Row Houses
Semi-detached and row homes present unique challenges:
- Shared wall considerations for insulation and soundproofing: $5,000-$8,000
- Party wall agreements may be needed for certain renovations
- Limited options for exterior modifications
- Potential complications with plumbing or electrical updates
The upside? Semi-detached fixer-uppers often come at a better price point than detached homes in the same neighbourhood.
Townhouses
We find two types of townhouses in Toronto: freehold townhouses and condominium townhouses.
Freehold townhouses are legally and financially the same as regular single-family houses – the homeowner owns both the property and the land it is built on and is responsible for all the maintenance, including roof, windows, electrical, plumbing, etc.
Condominium townhouses are a type of condominium where owners own a percentage of the condo corporation vs. any actual land. Owners of condo townhouses pay monthly maintenance fees that cover water/garbage/sewage, and shared amenity costs. Condo townhouse owners are (usually) only responsible for maintaining the inside of the home.
When it comes to fixer-upper townhouses, here’s what you need to know:
Freehold Townhouses:
- External modifications may require neighbour approval
- Limited space for HVAC upgrades
- Vertical layouts can complicate plumbing changes and increase the cost
Condo Townhouses:
- Must get board approval for renovations
- May have restrictions on structural changes
- Usually, can’t make major changes to electrical, plumbing, windows and doors, and anything else owned by the corporation
- Restricted construction hours
Condominiums
Condo fixer-uppers have strict limitations:
- No structural wall removal without involving engineers
- Fixed plumbing stack locations
- Board approval required for most renovations
- Restricted construction hours
- Limited contractor access
Fixer-Uppers: What to Look For
Structural Elements
- Foundation cracks (hairline vs. structural)
- Floor joist condition
- Load-bearing wall identification
- Roof structure integrity
Systems Check
Electrical:
- Service amperage (100A minimum recommended)
- Wiring type (aluminum or knob-and-tube may need replacement)
- Panel condition and capacity
Plumbing:
- Pipe material (galvanized needs replacement)
- Water pressure
- Main line condition
- Drainage issues
HVAC:
- Furnace age and efficiency
- Ductwork condition
- AC unit assessment
Toronto Building Permits: What You Need to Know
Always check if you need a permit before starting work. Current permit requirements include:
- Structural changes (including removing walls)
- New windows or doors in new locations
- Electrical system changes
- Plumbing system modifications
- HVAC system updates
- Additions of any size
Visit Toronto Building Permits for the complete guide and application process. We also wrote a blog about when you need a building permit – you can read it here.
Financing Your Fixer-Upper
While a conventional mortgage will help you buy a fixer-upper property (provided it can be insured), here are some ways to help finance the needed repairs and renos:
HELOC (Home Equity Line of Credit)
- Homeowners often tap into their Home Equity Line of Credit (HELOC) to finance major renovations. In Canada, you can borrow up to 65% of your home’s value through a HELOC, provided that your total home debt (including your mortgage) doesn’t exceed 80% of your home’s value. Translation? If you’ve got a $1 million home, you could access up to $650,000 through a HELOC, assuming you’ve got enough equity built up.
- Flexbility – borrow what you need, when you need it, and only pay interest on what you use
- Lower interest rates than a personal line of credit or loan
CMHC’s Purchase Plus Improvements Program
- The Canadian Mortgage and Housing Corporation (CMHC) has a robust (but onerous) program to help homeowners finance renovation projects.
- Allows you to roll renovation costs into your mortgage
- Requires contractor quotes before approval
- Up to 95% financing available for first-time buyers
- See the Purchase Plus Improvements Program details here
Home Renovation Savings Program
- On January 28, 2025, the federal government launched a rebate program to help homeowners improve the energy efficiency of their homes.
- Rebates include:
- $600 for a home energy assessment
- $100 per new window and door
- Up to $8,900 for insulation
- Up to $250 for air sealing
- $75 for a smart thermostat
- $500 for a heat pump water heater
- Up to $7,500 for a cold climate air source heat pump
- Up to $12,000 for a ground source heat pump
- Up to $5,000 for rooftop solar panels
- Will expand to include energy-efficient appliances later in 2025
- Details about the Home Renovation Savings Program here
Pro tip: Before you dive into any renovation, get multiple quotes and add a 20% buffer (at least) to your budget.
Red Flags to Watch For
While assessing properties for their fixer-upper potential, pay special attention to the following red flags:
- Structural Issues:
- Diagonal cracks in the foundation
- Sagging rooflines
- Uneven floors
- Water Damage:
- Musty odors
- Water stains on ceilings or walls
- Mold presence
- Dampness in basement
- Environmental Concerns:
- Asbestos (common in homes pre-1985)
- Lead paint (pre-1978)
- Underground oil tanks
- Soil contamination
Making Your Decision
When evaluating a fixer-upper, you’ll need to consider:
- Total Cost
- Purchase price
- Renovation costs
- Contingency (add 20% minimum)
- Carrying costs during renovation
- Permit fees
- Timeline:
- Permit approval time (5-20 days)
- Contractor availability
- Supply chain considerations
- Living arrangements during renovation
Final Thoughts About Buying a Fixer-Upper
Deciding to buy a fixer-upper is both exciting and daunting. The first (and arguably most important) thing to do is assemble the right team to guide you. You’ll need to hire a:
- Real estate agent: Hire a REALTOR who is skilled in assessing fixer-upper properties. They don’t teach us that in real estate school, so proven experience is critical.
- Home inspector: Home inspectors are trained to spot red flags, and they can help you prioritize what needs to be maintained, repaired and renovated.
- Real estate lawyer: While most fixer-upper sales close without a problem, you’ll need a great lawyer by your side to help you deal with any issues.
- Lender: It helps if they understand the risks and options of financing a fixer-upper.
- Contractor and home service professionals: This can make or break your renovation.
Ready to get started? Get in touch to schedule a consult with a BREL agent.
