A Complete Guide to Permits, Costs, and Grants for Heritage Home Renovations in Toronto

Article by Jude Kamal, Founder & Registered Interior Designer of Sansa Interiors

There's a great appeal to owning a heritage home in Toronto—a city rich with Victorian and Edwardian buildings. They're a big draw for buyers who value unique and vintage-looking properties that hold their own slice of Canadian history—an aesthetic celebration of Toronto's past.

Although this antique charm is an appealing feature for many people, there are certain aspects that need to be considered if you're planning to purchase and renovate a heritage home.

As with all older homes, your heritage home will likely require more extensive renovations and repair—with most of its existing systems (plumbing, electrical, structural, HVAC) in need of being brought up to code.

Even with these challenges, many home buyers still choose to purchase and renovate their own heritage or vintage homes. Those unique features, timeless architecture, patina roofs, and historic-artistic elements are something you just can't find in modern builds.

We can understand the attraction. But what does it actually take to renovate and restore a heritage home?

For the heritage homeowner or prospective home buyer, let's explore everything you need to know to renovate your heritage home in Ontario.

What is a Heritage Home?

Any house that is marked as "heritage" by their city is considered a heritage home. 

"Heritage" meaning, it has important significance to its wider community—usually connected to local historic events.

These homes typically have unique architectural features that need to be preserved, but since they're old buildings, they also require lots of renovation work.

It's a delicate balance between preservation and renovation to keep these homes aesthetically accurate and fully livable. The vast majority of older homes in Canada aren't energy efficient (leaving the unrenovated homeowner with extremely high energy bills), and often come with a lot of "quirks" like lack of proper insulation, rusty plumbing pipes that are prone to freezing during the winter, and uneven floorings and staircase risers.

Elevating these historic homes into livable and code-approved conditions takes a lot of work. But the end result is a breathtaking piece of architectural history.

For the home buyers who are up to the challenge, purchasing and renovating a heritage home can be a deeply rewarding experience.

About the Ontario Heritage Act

In Toronto, heritage homes are designated by the government—many through the legislation of the Ontario Heritage Act.

First enacted in 1975, the Ontario Heritage Act was created to support the protection and conservation of heritage buildings. It allows both municipalities and the provincial government to designate specific buildings and properties as having heritage significance.

What does this mean for you? Can you renovate a heritage home?

When any building is declared "heritage", it imposes certain standards and guidelines on what can and can't be done with it. This means, when it comes to renovating your heritage home, there will be extra rules you'll have to abide by in order to renovate (see "The Rules" below). 

Often, this can look like adjusting plans and incurring additional delays with the project, making the renovation process longer than it would typically be for a normal home.

While this process can seem intimidating to those who aren't familiar with heritage home renovations, working with an experienced designer and contractor can make it much easier.

Renovating a Heritage Home in Ontario

The Rules to Renovating a Heritage Home

When it comes to renovating a heritage home in Ontario, there are special restrictions in place to ensure the integrity of the heritage home is kept intact.

It's always recommended to hire an experienced consultant that can help you with this whole process.

Most of the restrictions you'll encounter specifically limit any changes to the exterior architectural characteristics of the home. While the interior has fewer, they are still held to their own rules and regulations.

All heritage homes require a high level of diligence when proceeding with renovations since there are many considerations to take into account. Usually, a designated heritage property will require a notice of change within 30 days of taking possession.

If you are planning to purchase a home that could be considered heritage, it is important to inspect and look into the limitations and potential costs. Hiring a real estate lawyer can support you with this process, as well as help you assess what is permitted under both the Ontario Heritage Act as well as your municipal laws. 

The Pros and Cons of Owning a Heritage Home

Let's take a look at some of the pros and cons of owning and renovating a heritage home...

The Pros

• Unique Piece of History. You'll be the owner of a unique property and irreplaceable piece of Canadian heritage and history!

• High Resale and Rental Appeal. Heritage homes maintain a high appeal with future buyers and even renters. Their unique architecture and gorgeous interior features keep these buildings a top choice in the housing market.

• Guaranteed Increased Home Value. As a heritage-designated home, your house is one of a limited number of historic homes in the city, and will always maintain a high value that will continue to rise as time goes by. 

The Cons

• Limitations. As with any heritage-designated home, there are both provincial and municipal limitations to what you can do with the building.

• Interior Upgrades. Because heritage homes are often old, they typically require a lot of interior upgrading (with plumbing, electrical, HVAC, R-Values for insulation), and sometimes the home might also require some structural or exterior revitalization.

• Heritage Committee Approval. Some changes to your heritage home will require approval by a heritage committee to ensure that the architectural characteristics of the home are maintained. This can sometimes cause delays in renovation or changes to plans.

• Unpredictable. Like with many old homes, sometimes surprises (like asbestos or faulty wiring) can pop up when you're gutting the building.

The Costs to Renovating a Heritage Home

A heritage home is an investment. 

It can take some time and money to renovate your heritage home to be compliant and up-to-code, but the value of your property will continue to rise over time. 

And when you buy a heritage home in Toronto, there's an extra incentive. The city offers certain grants for heritage home renovations as well as tax rebate programs, which help with overall costs (see "Grants & Rebates" below to learn more).

Now, when it comes to creating a budget for your heritage home renovation, here are a few factors you should consider:

1. Age of the Home: Most heritage homes are 100+ years old, and as with most old homes, it's not uncommon for unwanted problems to arise when removing drywall or gutting the space (like asbestos, lead pipes, mould and mildew, knob and tube wiring, roofing, insulation, and more).

2. Insurance: Insuring older homes usually tend to cost higher because they're deemed as more of a “risky” property due to the repairs and maintenance required to maintain their historic characteristics. Although it's important to keep in mind if you're gutting the home for a full renovation, it could lower your insurance costs since the inside will be new and updated to meet building codes.

3. Size of the Home and Lot: As a general rule—the smaller the size of the home, the less it will cost. Although costs depend on many factors, the size of your home will play a big part.

4. Labour: It's so important to hire the right designer and contractor for your heritage home renovation. These are professionals that will help you save you money and (many) headaches down the road. You want to ensure that your heritage home is going to last for a long time after the renovation and that no more surprise renovations will be needed in the near future. Hiring reputable professionals does truly make all the difference.

5. Scope and Complexity: Are you looking to reconfigure the entire interior and relocate certain plumbing and electrical? Are you looking to add an extension or build an addition? These are all factors that will impact both costs and timelines.

6. Finish Quality: You can find and purchase hardwood flooring for as low as 5$/SF or as high as 20$/SF. You can find a faucet for $100 or $1000. There is a huge range when it comes to fixtures, finishes, and furnishings—so it's important when budgeting to choose the finish quality that you're looking for. This is why having an interior designer on your team is always a wise investment. A designer will be able to recommend certain high-quality products and finishes for a more reasonable price without sacrificing quality and still achieving a higher-end design.

7. Other Costs: It's always smart to factor in between 20%-25% on top of your budget to handle additional costs (for consultants, architects, designers, building permits, etc.) as well as any unexpected surprises.

How much does it cost to renovate a heritage home? As a rule of thumb, it generally costs 30% more to renovate a heritage home than a fairly newer home.

Permits to Renovate a Heritage Home

It's important when beginning the renovation process to look into what permits you need.

In Toronto, a heritage home must get the Heritage Approval Permit before starting renovation work. The review process for this permit occurs at the same time as a standard building permit review and considers how any physical changes may enhance or adversely affect the heritage home.

Your permit is almost certain to get denied if the proposed renovations will alter the exterior heritage attributes of the home (this could include certain historical architectural elements, etc.). 

While interior renovations and small exterior fixes (like painting, fixing eavestroughs and weather stripping, and repairing broken windows) will almost never require a special Heritage Permit, they might if they alter any of the designated heritage attributes. 

Financing Strategies 

When planning for a major home renovation, it's necessary to start planning out your financing. Having smart financial planning can keep you in check and on track throughout the project.

Here are some tips for financing your heritage home:

1. Pre-planning (saving up): This one is pretty straightforward—putting money aside every month or every paycheck towards your home renovation in a designated savings account or low-risk investment portfolio. Avoid tapping into emergency funds for just an aesthetic redesign—keep that money for any necessary fixes or emergency repairs you may need down the road.

2. Personal Loans: With a good credit score, look into what is the ideal method of financing/borrowing for your home project. Personal loans are usually faster to get and have short repayment schedules which are a good fit for small-scale renovation projects. Obviously, we recommend shopping around to get the best loan rate and find something that suits both you and your lifestyle.

3. Mortgage Refinancing or Home Equity Loan: If you have equity in your home, it may be smarter to get a cash-out mortgage to refinance or a home equity loan depending on your current status and what is made available to you via financial institutions.

4. Credit Cards: Credit cards usually have the highest interest rates compared to other personal loans or mortgages and they generally should be the last resort for funding your home renovation. Although, some offer lower interest rates for a limited period of time (6-12 months) and could turn out to be a better option depending on your financial situation and needs. If you feel confident and comfortable with paying back your renovation costs within that time frame, then it could be a good alternative to taking a personal loan.

Always do your own research or consider talking to a financial advisor before making any major financial decisions.

Grants and Rebates to Renovate a Heritage Home

For the Toronto heritage homeowner (or prospective buyer), there are several options to help support your renovation project.

• Heritage Grant Program The Toronto Heritage Grant Program provides matching funds for eligible homeowners to repair and maintain their historic and heritage attributes (masonry, roofing, doors, etc.). You can also reapply for this grant every 5 years as continual help in maintaining your heritage home!

• Heritage Tax Rebate Program Through the Heritage Tax Rebate, eligible homeowners can receive a rebate of up to 50% of their maintenance costs and up to 40% of their property tax. While this program is currently more centred towards commercial and industrial properties, some personal properties are still eligible for the program.

• Incentive Energy Programs These are conservation programs that provide financial incentives for energy-efficient upgrades and repairs. Take a look at what options might be most relevant to your heritage home and lifestyle.

There really is a great appeal to owning a heritage home in Toronto—from their unique architecture to their historical significance and even the long-term financial benefits, a heritage home is a perfect match for the home buyer who loves timeless beauty and smart investments.

While renovating a heritage home is truly a labour of love, it's not a labour you need to tackle on your own.

At Sansa Interiors, we value the historic and community significance of heritage homes. Bringing both our tailored aesthetics and our expertise in navigating this intimidating process, we can make your heritage home renovation a deeply rewarding experience.

We would love to create a design that honours the era and style of your home.

Looking for an Interior Designer in Toronto?

We can help! We specialize in complete architectural interior design services for full house renovations. Our team serves downtown Toronto, Etobicoke, Mississauga, and the rest of the Greater Toronto Area.