When interior designer Debra Salmoni and her husband, wildlife expert Dave Salmoni, decided to renovate the home they were living in, they got more than they bargained for. Between the dust, stress, and living in a half-finished space with kids, it nearly pushed them to their limits. But in the end, it gave them something many Canadians right now would dream of—a home that they truly love.
Beyond being a feel-good story about perseverance, their journey shines a light on a growing trend in the Canadian real estate market: working with what you have in an uncertain housing environment. With interest rates fluctuating and property prices sitting stubbornly high, renovation is becoming a practical—and often emotional—response to the market. Homeowners looking to upgrade are now more likely to invest in their existing homes instead of moving. What does this tell us about where the market is headed—and more importantly, what should mortgage holders keep in mind?
Why Renovating Beats Relocating—For Now
The Canadian housing market has been running hot for years. That pace has slowed recently, but affordability still remains out of reach for many families. According to the Canadian Real Estate Association (CREA), the average home price in Canada was just over $680,000 as of early 2024. In major centres like Vancouver and Toronto, that number leaps far higher.
But rising prices aren’t the only challenge facing buyers. The Bank of Canada’s string of interest rate hikes have pushed mortgage costs up considerably. For many, that’s made trading up to a bigger property—or even relocating to a new one—potentially unaffordable. That’s where renovations come in.
Instead of risking their financial stability by buying at a higher rate, more homeowners are tapping into home equity to fund major upgrades. This is where a Home Equity Line of Credit (HELOC) can be an option, offering flexibility in how and when you use the funds. It gives some breathing room and can be less expensive compared to refinancing your entire mortgage at today’s rates.
Living Through Renovation: Is the Stress Worth the Reward?
Debra and Dave Salmoni’s story isn’t rare. Living in a construction zone while juggling family, work, and life rarely goes smoothly. But many homeowners make that choice to avoid the costs and complications of selling and moving in the current climate.
Beyond the dust and delays, costs often spiral. According to data from Altus Group, renovation spending in Canada is expected to top $80 billion in 2024, much of it going toward essential repairs and modest upgrades rather than full-scale remodels. Still, surprises behind the walls or changing material costs can put pressure on budgets. For that reason, some homeowners explore a construction mortgage to help manage large renovation projects with structured disbursements.
Interestingly enough, the financial risk homeowners accept through renovation often fills the emotional need of feeling grounded, especially when the housing market feels unpredictable. With renovations, you control the timeline, design, and cost strategy more than you would in the buying market. For many—like the Salmonis—the pain pays off in pride and permanence.
The Real Cost of Waiting to Buy
There’s no guarantee that home prices will tumble or that borrowing costs will soften significantly in the short term. Inflation is slowly easing, but the Bank of Canada has signaled it will proceed cautiously when considering future rate cuts. Most analysts don’t expect substantial decreases until late 2024 or beyond.
That puts Canadians in an uncomfortable position. Wait too long, and you risk being priced out again if demand surges. Jump too soon, and higher mortgage rates could strain your monthly finances. As you weigh those choices, it’s worth using practical tools like a mortgage calculator to understand what you can reasonably afford today.
Meanwhile, homeowners with locked-in rates—especially those from the low-rate era of 2020–2021—are wisest to stay put unless there’s a compelling reason to move. Upgrading your home through renovation keeps that rate intact, avoids land transfer taxes and legal fees, and lets you tailor your space to your needs.
Should You Refinance to Renovate?
There’s definitely an argument to be made for tapping into equity through a refinance—if the numbers make sense. Many Canadian homeowners have gained significant value in their properties over the past decade. That value can be used to fund renovations or consolidate higher-interest debt.
But refinancing into a higher interest rate brings risk. It’s important to calculate your potential payments carefully and consider whether you’d benefit more from a refinance, a HELOC, or even a second mortgage. Each has different implications for monthly cost, long-term interest, and flexibility.
Keep in mind that penalties for breaking your current mortgage can be significant, especially if you’re in a fixed-rate term. Make sure you look into prepayment penalties before making any move.
Whichever route you take, working with a mortgage broker can help you compare your options clearly and avoid costly surprises. In many cases, people are surprised to learn they have more room to maneuver than expected.
What the Salmonis Can Teach Us
Debra and Dave Salmoni’s renovation journey speaks to a larger truth: home isn’t always about buying bigger or newer. It’s about creating a space that works for your family—financially, emotionally, and practically. And for many Canadians navigating this complex housing moment, innovation and adaptation seem to be winning over relocation.
If you’re thinking about how to upgrade or improve your home without taking on a whole new mortgage at today’s rates, you’re not alone. With smart planning and the right financing structure in place, it’s possible to get the dream home experience without the dream-sized headache.
And for those just starting to explore the numbers, check out Canada’s best mortgage rates here. Talking with an experienced broker can help you see where renovations may reinvest value into your property—without overextending yourself in the process.
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