Big Repairs Ahead

The listing says "needs some TLC." The inspection says the roof has five years left, the windows are original, the kitchen is from 1978, and the electrical panel is a hazard with a vintage name. This calculator turns a repair list into a total price so you can compare the fixer-upper against the turnkey home honestly.

The question bargain hunters skip: after quotes, contingency, closing costs, and months you cannot live there comfortably, is the cheap house actually cheap?

It does not estimate repair costs; you need real contractor quotes, not guesses. It does not model DIY work, permit delays, or the value of your time, and it does not predict the home's value after renovation. It adds up costs, not future worth.

Your inputs, explained

Purchase price of the fixer. The price you would pay, not the list price. In a soft market for homes needing work, these are often different. Use the number you would actually offer.

Repair quotes by category. Roof, windows, kitchen, bathrooms, electrical, plumbing, foundation, furnace. Enter each quote separately, because the tax treatment differs: capital improvements like a new roof, new windows, an addition, or a full kitchen add to your adjusted cost base and shrink capital gains tax when you sell. Repairs and maintenance like painting or a furnace fix do not.

Contingency percentage. The buffer for what the contractor finds behind the walls. Fifteen to twenty percent is standard for older homes. The common error is entering zero because the quote "seemed thorough." Quotes are thorough about what is visible.

Renovation timeline in months. How long before the home is livable. During those months you are paying the mortgage on a house you may not be living in, possibly plus rent elsewhere. The calculator needs this to price the carrying cost.

Comparable turnkey price. What a finished, comparable home costs in the same neighbourhood. This is your benchmark. Without it, the calculator can tell you the fixer costs $735,000 all-in, but not whether that is a deal.

How the math works

The calculator adds the purchase price, repair quotes, and contingency for the renovation subtotal. Then it adds standard closing costs on the purchase price: land transfer tax per your province's schedule, legal fees ($1,200–$2,500), title insurance ($300–$600), and a home inspection ($400–$700, already paid).

Then it prices the timeline: monthly mortgage payment plus property tax times the number of renovation months, plus any rent you pay while displaced. The grand total is your true all-in cost. The final step is the comparison: all-in fixer cost versus the turnkey price plus its own closing costs. The difference is what the "deal" is really worth.

One tax note the calculator tracks: capital improvements raise your adjusted cost base, which shrinks a future capital gain. On a rental, routine repairs were deductible as expenses in the year paid; improvements were not. Keep every receipt, sorted by category.

Worked example

A buyer in Ottawa compares a $620,000 fixer with a $700,000 turnkey home in the same neighbourhood. Contractor quotes: roof $18,000, windows $22,000, full kitchen $35,000, electrical panel and rewiring $15,000.

Step 1: Repair subtotal. $18,000 + $22,000 + $35,000 + $15,000 = $90,000.

Step 2: Contingency at 15%. $90,000 × 1.15 = $103,500.

Step 3: Closing costs on $620,000 in Ontario (outside Toronto). Land transfer tax: $275 + $1,950 + $2,250 + (2% × $220,000 = $4,400) = $8,875. Legal fees $1,800, title insurance $450, inspection $550. Total closing: $11,675.

Step 4: Carrying cost. Four-month renovation; mortgage payment roughly $2,900 per month plus property tax $350: $3,250 × 4 = $13,000. She stays with family, so no extra rent.

Step 5: All-in fixer cost. $620,000 + $103,500 + $11,675 + $13,000 = $748,175.

Step 6: Turnkey comparison. $700,000 plus its closing costs: land transfer tax $10,475 + legal $1,800 + title insurance $450 + inspection $550 = $13,275. All-in: $713,275.

The "bargain" costs $34,900 more than the finished house, before valuing four months of construction dust. Unless she does significant work herself or the finished value exceeds the turnkey price, the turnkey home wins.

Provincial quirks and edge cases

In Quebec, the welcome tax is billed 2–3 months after closing, which shifts cash timing on a fixer: you pay closing costs, fund the renovation, and then the municipal tax bill arrives mid-project.

Ontario's 8% sales tax on the CMHC insurance premium hits fixer buyers who put down less than 20%, and it is cash on closing. On a $620,000 purchase with 10% down, the premium is $16,740 and the tax is $1,339.20, due the same day as every other closing cost.

Permit rules and heritage designations vary by municipality, not just province. A designated heritage home can restrict what you change and multiply costs; check with the municipality before offering.

If the property will be a rental, remember the flipped-property rule: sell within 365 days and the profit is business income at 100% inclusion. Renovate-and-flip timelines often collide with that clock.

Questions to ask a professional

1. Ask your home inspector: which of these issues are urgent, which can wait five years, and what did you see that suggests hidden problems?
2. Ask each contractor: is this quote fixed or an estimate, what is excluded, and what is your surcharge if the scope grows?
3. Ask your lawyer: are there outstanding work orders, heritage designations, or permit issues on title that change what I can do?
4. Ask your mortgage broker: will the lender fund the full purchase price on a home in this condition, or will they hold back until repairs are done?