Budget-friendly Upgrades for the Home and Government Incentives to Help Pay for Them
In this weekly Q&A column, retired builder/building inspector Cam Allen answers readers’ questions about home renovation and climate resilient homes. Have a question? Enter it in the form below.
A couple of casual comments that I get a lot of are “the cost of renovations are so expensive!” and “we can’t afford to move and feel trapped in a house that is now dated.” The comment that generated today’s column was that so many sustainable improvements are not possible for many budgets.
No argument, renovation costs today can be intimidating and the stylish changes you see on the TV and YouTube are nice, but simply not realistic for many homeowners.
When asked, I comment that there are some areas that can make an outsized difference with quite reasonable cost. A fresh coat of paint is the most common way to change a room’s atmosphere. Initially, focus inside on high traffic areas like your home entrance, living room, kitchen and bathrooms. The majority of “boutique upgrades” can be very effective and almost all are DIY projects.
Start with the exterior, at this time of year curb appeal improves with a good year-end cleanup. Changing the colour of your front door is one boost that is dramatic and easier this time of year.
Now move inside and look at two improvements that can improve your energy efficiency. Go through your home and upgrade all your lighting to LED. Recently I changed our dining room light and every guest into our home since then has noticed this upgrade. Light fixtures can make a pleasant visual difference along with reading and eye comfort. Window decoration can change the look of a room dramatically. This is where decorative blinds and window shades, especially the honeycomb style can make a difference in your
energy efficiency.
Take one area at a time, like your front entrance and keep it simple. Most entrances are smaller and the flooring takes a beating. Upgrade here using one of the waterproof interlocking tiles, most can be installed over an existing floor. This can also apply to your kitchen and bathrooms.
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Today’s waterproof vinyl flooring has come a long way for bathrooms and kitchens. Often called luxury vinyl plank flooring, they are durable, warm and soft and reasonably priced. Most are DIY friendly and while not always readily available, most are recyclable.
A simple switching out of your kitchen drawer and door hardware makes quite a difference. One reasonable cost renovation that makes a major change is replacing a section of upper cabinets with open shelving. Pick a feature wall to do this, use stylish containers and arrange them neatly. You would be surprised how effective simply changing out your bathroom towel rods and holders, new shower curtain or window treatments along with a new waterproof floor.
One step that requires some respectable DIY skills is adding crown moulding or floor trim. Crown and layered baseboard trim can dramatically change the
appearance in a living, dining or bedroom, adding a formal touch.
Both levels of government are clearly set on home improvement tax and rebate programs, directed towards safety, access and energy savings. While a number of programs have disappeared in the past few years, there are a few programs still available. The federal government recently released some information on yet another one geared towards energy savings. There is some confusion as to what programs are still operational, which ones have ended and which individual provinces still have supported a program either by
grants, rebates or tax credits. This is the list of available programs I know of right now and a bit about the one coming.
The Canada Greener Homes Affordability Program is available to residents in BC, Manitoba, Newfoundland & Labrador, Nova Scotia, PEI and Quebec along with regional Indigenous governments. This program has been around since early 2025 and from what I am hearing it is nearing its end. It covers approved renovations costs for low- and middle-income households in the provinces listed. It was geared towards energy efficient retrofits.
The multigenerational Home Renovation Tax Credit was designed to provide a federal tax credit of up to $7,250 for qualified expenditures that creates a self contained secondary living unit. This unit must allow a senior or eligible adult using the disability tax credit to live with a qualified immediate relative. The credit can represent up to 14.5 percent of the eligible renovation costs up to
$50,000. The guidelines are strict – qualifications are a tedious process. That said, it’s expected to be around for a while yet. The Home Accessibility Tax Credit allows for a considerably larger tax credit, up to $20,000 per year and this program has been in place for a while. Again, from what I hear, it will be around for some time yet.
This program is designed for seniors to remain in their primary residence, anyone with a disability or an impairment individual who has a valid T2201 Certificate. It is a document intensive program and does not cover things like appliances, housekeeping or any home security or maintenance. The plus for anyone registered on this program is it is an annual tax credit for recognized expenses. The newest one is the National Heat Pump Rebate and this one is
probably the largest I have seen in a while.
The Carney government has set aside $2 billion for this program and they expect to retrofit heating systems in upwards of a million Canadian homes. It will have two major qualifications: you must fit the income levels and your present system must be older or have failed to operate, hence the eight year lifespan projected for this program. Each eligible home will receive up to $10,000 for below the median income households and $2,000 for other eligible
homeowners. You must install a recognized electric cold-climate heat pump. The details of the program are not going to be released until early 2027. While I think the program is excellent, from what I hear they will be targeting homes with oil heat, gas boilers and older propane installations. The two areas I can see that may have some cost effect is “does the home have the electrical capacity?” And in the case of maritime homes where oil is a major heat source, local electrical capacity at the entrance. I will give the government credit. They have made the program as simple as possible to apply for, approvals in 24 hours and no energy audit is needed.
Ontario has the Enbridge Home Efficiency Rebate and it covers heat pumps too. From what I am hearing, this will cease once the federal program kicks in. The same I suspect will apply to similar heat pumps rebate programs in BC and Alberta. The provincial programs all cover additional rebates like insulation and other energy efficiency upgrades. It remains to be seen if they continue
this portion once the federal heat pump program starts.
Use our Incentive Finder to discover more rebates and tax breaks for your renovation.
Images from Depositphotos
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