Deciding to Stay, Renovate or Move – Cost Calculator

Calculate the 10-year costs and benefits when deciding if you should move or stay put and/or renovate

Explore how moving from your current home to a new one can affect your financial situation over 10 years? This Business Case will provide you with insights into whether your equity will grow faster, how much you spend on transaction costs, and how your monthly bills will change. Simply input your information and receive valuable guidance on your financial future.

Use the Move or Stay Put / Renovate calculator guide below to understand the factors in the calculator. For a detailed calculator walk through, review the review this Move or Stay article.

Option 1 is your current state of expenses based on where you live right now. This also provides a renovation option.

Option 2 is a the target place you are considering moving too, or how much you expect to spend.

Remember to keep a copy for yourself by entering your email address at the bottom of the “Business Case Summary” section.

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Stay Put, Renovate, or Move Guide to Understand all the Factors

Current Home Value Information

  • Market Value (Expected Sales Price): This is the expected market value you expect to sell your existing property for. Tools like www.zillow.com (US) or www.housesigma.com (Canada) are great research tools.
  • Mortgage Balance: The loan or mortgage amount that you still own to the bank, or your lender.
  • Annual property value growth rate: How much you expect your property to grow each year in value. This impacts your long-term equity growth measurement. US and Canada 20-year average growth rates range between 2-6% depending on where you live.

Current Mortgage Financing

  • Interest Rate: The annual interest rate on your mortgage. Conventional mortgages will have the option of a fixed or variable rate that adjusts if the government moves their rate up or down.
  • Amortization Period for the Loan (Years): The number of years your current loan is amortized for. The longer the amortization period, the lower the monthly payment. However, extended amortization periods will also result in more interest paid.

Current Annual Expenses

  • Property Taxes: The property taxes you pay each year to the government. They tend to be split up over monthly payments.
  • Utilities: This includes your monthly costs related to utilities such as water, water heating, heat, air conditioning, electricity, etc. When moving, some of these costs will vary with the size of your home.
  • Management Expenses (or Maintenance Costs or Fees): Any monthly or annual fees for maintenance of the property or common areas. This usually applies to condos, townhomes, or HOA properties.
  • Basic Maintenance and Repairs Estimate: An estimate of ongoing maintenance and minor repair costs.
  • Home Insurance: The cost of protecting your home against major damages and expenses.
  • Other Annual Expenses: Placeholder to capture anything else you can think of that is a recurring expense, but missing from above.

One-time Costs if you choose to Stay

  • Major Repairs: Are there any major repairs you will take on if you stay put, such as the furnace, roof, or air conditioning? If so, capture those expenses here.
  • Renovations: Renovating your current home is sometimes a more cost-efficient option than moving. Consider what you would spend to expand or better utilize your space (e.g. adding an extension or another floor, finishing the basement or attic, shifting around the walls, etc.)

Realtor Fees if you Sell         

  • Realtor Commission % when Selling: You’ll likely incur real estate agent fees and commissions if you sell your current home, which will only happen if you choose to move. These commissions usually range from 3%-6% of your sale price.

Move: Purchase Information

  • Expected Purchase Price: Knowing the market value of the target properties you want to buy is crucial for making informed financial decisions. Tools such as www.zillow.com (US) or www.housesigma.com (Canada) help you see ‘sold’ properties, which is more accurate than only looking at ‘listed’ values.
  • Additional Down Payment: Do you expect to add more funds to your down payment, or just bring over your equity as is?
  • Mortgage Insurance: This usually applies if you have a low down payment amount as a % of the total loan. The bank or lender will require that you have mortgage insurance. In most cases, it is added onto to your mortgage amount.

Move: Expected Mortgage Financing

  • To help understand your future payments amounts, enter the expected mortgage rates and amortization that you can expect for your new home. If you are unsure, it’s best to work with your mortgage broker or lender to get pre-approvals so there are no surprises.

Move: Transaction Costs involved with Moving

  • Legal and Regulatory Fees: These closing costs can include appraisal fees, title insurance, and legal fees. Some are government-mandated, while others are optional but will protect you in case of an issue with the sale. Consult a lawyer or the local government guidelines for more information on these fees.
  • Moving Expenses: Moving involves various expenses such as hiring movers, packing materials, and transportation costs. Consider what you can do yourself, such as disassembling large items and packing to reduce costs.
  • Home Inspection: Given that a home purchase is usually the largest transaction in most people’s lives, paying for a home inspection is a great idea to avoid future negative surprises and major expenses such as structural problems, electrical and plumbing issues, and environmental concerns like mold or asbestos.
  • Land or Property Transfer Taxes: Land transfer taxes, sometimes referred to as property transfer taxes or stamp duties, are fees imposed by various levels of government when real estate ownership changes hands. The property buyer typically pays these taxes. Review your local government regulations to estimate this amount.

Move: One-time Repair and Renovation Costs

  • To make your new home comfortable, you may need to invest in repairs or upgrades. This could be repairs and maintenance to keep your new home in good standing and operating normally. Alternatively, it can be upgrades and improvements that will improve your living conditions for years to come.

Move: Property value growth rate (new home)

If your new property grows at a faster rate then your current property, then your equity may grow faster. However this is also impacted by many factors including the area, type of home (condo, detached, semi, town, etc.), and the overall value of the home, and the economic cycles.

Move: Future Annual Expenses

While upsizing usually leads to higher monthly and annual expenses, downsizing can lead to potential savings around utility bills, property taxes, insurance, and basic maintenance and repairs. It is difficult to know what your new expenses will look like for a move. One method is to estimate that based on your change in home size, such as square footage. For example, if you are moving from a 2000 sq ft home to a 2500 sq ft home, you can estimate that your expenses will increase by about 25% (500 / 2000).