A full gut renovation – stripping to studs, replacing all mechanical systems (plumbing, electrical, HVAC), new insulation, windows, and finishes – typically runs $200-$350/sq ft in Ontario depending on location, finishes, and what surprises emerge. For a 1,600 sq ft home that’s $320,000-$560,000. At the high end that approaches or exceeds the cost of a new build on the same lot, which is why the rebuild option deserves serious consideration for aging homes with significant work needed.

A new custom home in Ontario runs roughly $250-$400/sq ft for the build itself (excluding land, site work, permits, and development charges) depending on location, complexity, and finishes. ICF construction adds about $15,000-$25,000 but delivers dramatically better energy performance, lower maintenance, and a full Tarion warranty. See the custom home building calculator for a detailed estimate based on your inputs.

For a cosmetic renovation, usually yes. For a deep renovation – gut-level work on kitchen, bathrooms, electrical, plumbing, and insulation – the reality is difficult. Dust, noise, no functional kitchen or bathrooms, and safety concerns make it uncomfortable at best and impractical at worst for families with children. Budget for temporary accommodation (typically $1,500-$3,500/month depending on location) as a real cost of the renovation, not an optional extra.

Yes – demolition requires a demolition permit, and the new build requires a full building permit. In some municipalities, zoning rules mean the new build must meet current setback requirements, which could be more restrictive than what the existing home enjoys as a legal non-conforming structure. Always check zoning before committing to a teardown. Our guide to Ontario building permits covers the process.

Almost always yes, and this is where the rebuild math gets interesting. A deep renovation that includes new insulation, air sealing, and windows might bring an older home from EnerGuide 45 to about 65. A new ICF build routinely reaches EnerGuide 80-85. The energy-cost difference over 20 years, combined with ICF’s lower maintenance, stronger structure, and full warranty, often more than justifies the new-build premium. Use the ICF energy savings calculator for your home size and fuel type.

The lot value is a critical input in the rebuild decision. The simplest approach is to look at comparable vacant-lot sales in your neighbourhood – what did nearby raw lots sell for in the past 12 months? A local real estate agent or appraiser can help. In the Georgian Bay and Simcoe County area specifically, lot values have risen dramatically and often represent 30-60% of total property value, which significantly improves the rebuild math.

Generally yes – a new home built on your lot after a teardown is new construction, so it can qualify for the Ontario and federal new-housing HST rebates, and potentially the enhanced Ontario rebate of up to $130,000 if the timing rules are met. A renovation, even a deep one, usually does not, unless it rises to the level of a “substantial renovation” as defined by the CRA. That rebate difference is one more factor that can favour a rebuild. Check your number with the HST rebate calculator and confirm eligibility with a tax professional.