The trend accompanied a steady decline in Canada’s non-mortgage debt load
Over the past year or so, most Canadians (59%) have been paying for their home renovations out of their own savings stashes, according to a recent survey by BNN Bloomberg and RATESDOTCA.
Only 2% said that that they financed their housing projects through home equity lines of credit. General lines of credit accounted for 11% of households undertaking renovations, while credit cards funded 7% of these. Two per cent said they received financial assistance from family or friends.
“The large number of Canadians using savings to pay for renovations reflects recent data that show a decline in non-mortgage debt in the country even as mortgages have surged to record levels,” said John Shmuel, managing editor at RATESDOTCA.
Since the onset of the pandemic, 27% of homeowners had renovated their abodes, while another 20% said that they were planning to do so “in the near future.”
Read more: Increases in construction costs slowing down – Statistics Canada
A Simply Group poll earlier this year had similar results, with the survey finding that Canadian homeowners still preferring to focus on renovations as applications grew by 30% quarter over quarter in Q2.
“As Canadians spent a significant amount of time at home, their increased disposable income provided an opportunity to invest in home renovation projects,” said Lawrence Krimker, CEO of Simply Group. “Our data reflects that Canadians continue to prioritize their home improvement plans in a financially viable way. As the winter months approach, we expect this trend to continue throughout the remainder of the year.”
