Verify before you sign
Ask for the business number, proof of liability insurance, and WSIB clearance. Confirm who is pulling permits, and call two references whose projects were the same type and size as yours.
Structure the payments
A deposit should cover materials, not the whole job. Tie the remaining payments to completed milestones, and hold back the final amount until deficiencies are corrected. Ontario construction law also provides for holdback on larger projects.
- Avoid paying more than a modest deposit up front
- Never pay cash for the whole job to save tax
- Keep every change order in writing with a price
Permits protect resale, not just safety
Unpermitted structural, electrical, or plumbing work can stall a future sale, complicate insurance claims, and reduce what a lender will finance. The buyer's lawyer will ask.
Have the money in place first
Contractors move on schedule; financing sometimes does not. Arranging a HELOC or refinance before demolition day avoids the worst version of this problem, which is a half-finished house and a stalled approval.
Frequently asked questions
- Does a permit raise my property taxes?
- It can trigger a reassessment if the work adds living space. Most cosmetic renovations do not change the assessment.
- Can I borrow against a home that is mid-renovation?
- It is harder. Lenders appraise the current condition, so it is much easier to arrange financing before work starts.
Talk to a Toronto private mortgage specialist
We arrange equity-based financing across Toronto and the GTA, whether you need a first position from a private lender or a second mortgage behind the bank you already have.