Homeowners With A Mortgage:
Two thirds (64%) Do Not Plan For Renovations When Buying Home
Three Quarters (74%) Have Undertaken Renovations Or Makeovers on Their Home
Toronto, ONTARIO � According to a new survey conducted by Ipsos-Reid on behalf of President�s Choice Financial, two in three (64%) Canadian homeowners with a mortgage do not often plan for home renovations and makeovers when purchasing their home.
However, three quarters (74%) of homeowners with mortgages have undertaken renovations or makeovers on their home. In addition, half (45%) plan to spend between $1,000 to just under $5,000 on home renovations or makeovers this year. Further, 17% plan to spend less than $1,000, 14% will spend $5,000 to just under $10,000, 5% will spend $10,000 to just under $15,000, and 3% will spend more than $15,000.
When considering which room in the house is in most need of renovation or makeover, thee in ten (31%) say that their kitchen. One in five (22%) would consider their bathroom(s) in most need of renovation or makeover, another 18% would choose their living room, and 10% think their bedroom(s) most need a renovation or makeover.
The fact that the largest group of homeowners with a mortgage consider their kitchen to be most in need of renovation is not surprising, given that half (49%) believe a renovated kitchen would add to their home�s overall resale value. One in five (21%) believe that renovated bathroom(s) would increase the resale value, and another one in five (18%) say their living room. A small group (6%) think their bedrooms, if renovated, would increase the resale value of their home.
These are the findings of an Ipsos-Reid/President�s Choice Financial poll conducted in two waves: the first wave running between February 17th and February 19th and the second wave running between February 24th and February 26th. The telephone survey is based on a randomly selected sample of 789 adult Canadian homeowner�s with a mortgage. With a sample of this size, the results are considered accurate to within � 3.6 percentage points, 19 times out of 20, of what they would have been had the entire adult Canadian homeowner with a mortgage population been polled. The margin of error will be larger within regions and for other sub-groupings of the survey population. These data were statistically weighted to ensure the sample’s regional and age/sex composition reflects that of the actual Canadian homeowner with a mortgage population according to the 2001 Census data.
Majority (64%) Did Not Account For Renovations When Applying For A Mortgage
The majority (64%) of mortgage holding homeowners did not factor in the costs for renovations or makeovers when purchasing their home. One third (36%) of homeowners planned for the costs of renovations and makeovers to their home when making the purchase.
Three quarters of Albertans (75%), and British Columbians (74%) homeowners with a mortgage did not factor in costs of renovations or makeovers when purchasing their home, compared to seven in ten in Atlantic Canada (69%) and Ontario (67%), and half in Saskatchewan/Manitoba (54%) and Quebec (49%).
Those respondents with a University degree were significantly less likely than all others to have not factored in the costs of renovations or makeovers when purchasing their home (54% University, 69% Post Secondary, 68% high school, 71% less than high school).
Three Quarters (74%) Have Undertaken Renovations Or Makeovers On Their Home
In total three quarters (74%) of homeowners with a mortgage that were surveyed had undertaken a home renovation or makeover. Three in ten (28%) had begun their first renovation or makeover after one year of being in the home, while one in five (19%) had done so within the first year of living there. Others had begun renovations or makeovers either right after they had moved in (14%), or before they had moved in (13%). One quarter (25%) answered that they did not renovate their home.
Quebec (36%) homeowners with a mortgage are the most likely to have waited one year after moving in before renovations, followed by Albertans (28%), Ontarians (27%), British Columbians (24%), Atlantic Canadians (23%), and residents of Saskatchewan/Manitoba (18%).
Half (45%) Plan to Spend Between $1,000 to $5,000 On Home Renovations This Year
The largest portion of homeowners with a mortgage (45%) plan to spend between $1,000 to just under $5,000 on home renovations or makeovers this year. Further, 17% plan to spend less than $1,000, 14% will spend $5,000 to just under $10,000, 5% will spend $10,000 to just under $15,000, with 3% spending more than $15,000. Of the remaining respondents, 14% plan to spend no money on renovations in the coming year, and 1% doesn�t know how much they will spend.
Older respondents are the most likely not to plan to spend any money on renovations in the coming year (12% 18-34, 10% 35-54, 27% 55+).
Half (50%) of those earning over $60,000 a year plan to spend $1,000 to $5,000 this year on home renovations or makeovers, compared to 44% of those earning between $30,000 to less than $60,000, and 34% of those earning less than $30,000.
Three In Ten (31%) Say Their Kitchen Is Room Most In Need Of Renovation Or Makeover
When asked which room in their home is in most need of a renovation or makeover, three in ten (31%) mortgage holding homeowners answer that it is the kitchen. One in five (22%) would consider their bathroom(s) in most need of renovation or makeover, and another one in five (18%) would choose their living room. One in ten (10%) think their bedroom(s) are in most need of a renovation or makeover. The remaining 19% say they don�t know.
British Columbians (37%), Ontarians (34%), and Albertans (33%), are the most apt to think their kitchen is in need of renovation, followed by Quebecers (28%), Atlantic Canadians (24%), and residents of Saskatchewan/Manitoba (17%).
One in five in Saskatchewan/Manitoba (19%) and Atlantic Canada (17%) think their bedrooms are most in need of renovation, compared to one in ten in Alberta (11%), Ontario (9%), Quebec (8%), and British Columbia (8%).
Half Say (49%) Renovating Kitchen Adds Most Value to Home
Half (49%) of mortgaged homeowners believe that the one part of their home that would increase their home�s overall resale value if it were renovated is their kitchen. One in five (21%) believe that renovated bathroom(s) would increase the resale value, and another one in five (18%) believe renovating their living room would increase value. A small group (6%) think their bedrooms, if renovated, would increase the resale value of their home. The remaining 7% don�t know.
Kitchens are considered the valuable room to renovate most in British Columbia (58%), followed by Ontario (51%), Quebec (47%), Atlantic Canada (42%), and Alberta (38%), and Saskatchewan/Manitoba (38%).
The living room is considered to be the most value added room to renovate most by the younger respondents (27% 18-34, 17% 35-54, 13% 55+).
Six in Ten (57%) Apply For A Mortgage After Finding a House They Want to Buy
Six in ten (57%) homeowners with a mortgage did not apply for a mortgage until they found their house and decided they wanted to buy it. In contrast, a minority of four in ten (41%) did apply for a mortgage before deciding to buy their home. The remaining 2% didn�t know when they applied for a mortgage.
Quebec (64%) homeowners are the most likely to have applied for a mortgage after finding the house they wanted to buy, followed by residents of Ontario (56%), Atlantic Canada (56%), Saskatchewan/Manitoba (56%), and British Columbia (56%). Albertans (48%) are the least likely to do so.
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