Upgrade vs Renovate
Compare the total cost of buying a bigger home versus renovating your current one.
Inputs
Renovation Path
Upgrade Path
Mortgage Terms
Cost Difference (Upgrade - Renovate)
$529,040
Reno Mortgage
$450,000
Reno Payment
$2,763
Reno Equity
$500,000
Upgrade Mortgage
$706,500
Upgrade Payment
$4,339
Upgrade Equity
$393,500
Recommendation
What This Means
Renovating adds $100,000 to your mortgage for a new total of $450,000, with monthly payments of $2,763. Upgrading requires selling (5% costs), buying at $1,100,000, and paying LTT, resulting in a new mortgage of $706,500 at $4,339/month. The monthly payment difference is $1,575.
RAZZ Insight
Renovating is significantly cheaper here. However, consider whether the renovation will actually give you what you need. A kitchen reno on a small footprint does not add bedrooms. Make sure the renovation addresses your core needs, not just cosmetics.
Results are estimates only and may vary based on lender policies, market conditions, and individual circumstances. Consult a mortgage broker or financial advisor for accurate figures.
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