Should I Renovate My Old Vancouver House or Build a New One?

When a family asks us this, we start with the people who will live there, then the building. Who lives in the house in five years? Are parents moving in, does a grown child need a place, would you rent out a suite to help with the mortgage? A renovation keeps the rooms where they are. A new build lets you plan each floor for the person who uses it, for example a ground floor with no stairs for grandparents.

Then look at the house itself: the foundation, the roof, the wiring, the plumbing and how much of the floor plan you would change. If the answer is most of it, read the next section before you choose.

BC's Homeowner Protection Act defines a new home to include a home that is or is being substantially reconstructed. BC Housing's Regulatory Bulletin 06 (October 2023) explains the test. In general, a home is substantially reconstructed when 25% or less of the original structure above the foundation remains, or when 75% or more of the reconstructed home is new. If the foundation is new too, the bulletin's guideline is 50% or more of the structure above it.

Once a project meets that test, it is no longer a renovation. It needs a New Home Registration Form, which means proof that a licensed builder has arranged home warranty insurance, or a formal exemption such as an Owner Builder Authorization. BC Housing says each case is examined on its own merits and it makes the final decision. So if your renovation plan replaces most of the house, ask your builder early whether it meets the test.

For a lot in Vancouver's R1-1 zone, the City's R1-1 district schedule (June 2026 version) allows a single detached house, a duplex, and a multiplex of up to 6 homes, or up to 8 when all of them are rentals. A multiplex is a conditional use, so the City reviews each one.

A multiplex is only allowed on a lot that has vehicle access from the rear, is outside a designated flood plain, and was a single lot on record before October 17, 2023 or was created by subdivision. The size and width of the lot set the number of homes. How many homes fit on your lot has the full table.

There is a third path. The R1-1 schedule says retention of character houses is encouraged by allowing infill and multiple conversion dwellings where a character house is kept: you keep the old house and add homes inside it or behind it.

Keeping the house means keeping a set share of its structure. The City's character house retention bulletin (October 2023) says that to qualify for the zoning incentives, "approximately 40%" of the primary structure, meaning the exterior framing and sheathing, should be retained. Street-facing walls, the original roofline and distinctive exterior features are expected to stay. The same bulletin says that where an extensive renovation counts as reconstruction under the building code, a full building upgrade and a water and sewer connection upgrade are required.

Many older Vancouver houses hold asbestos or lead paint. Under section 20.112 of BC's Occupational Health and Safety Regulation, before work begins on the renovation or demolition of a building, the owner and the employers must ensure a qualified person inspects it to identify hazardous materials, including asbestos and lead. You need the inspection on either path, so book it before you choose: what it finds is part of the decision.

Taxes can change too. The Canada Revenue Agency's guide RC4028 lets an owner who substantially renovated their house apply for the GST/HST new housing rebate. The CRA's test is that at least 90% of the building, other than the foundation, external walls, interior supporting walls, floors, roof and staircases, was removed or replaced. Ask your accountant how it applies to your plan.