Canadians Increasingly Investing in Home Renovation Projects Even After the Pandemic, Simply Group Data Reveals
TORONTO–(BUSINESS WIRE)–Following the reopening of the economy after more than a year of the pandemic, Canadians still chose to allocate their finances to invest in home renovations. Simply Group, Canada’s non-bank consumer lender of choice, analyzed the first two quarters of 2021 to understand how Canadians planned their home improvement projects and the role of the pandemic in their home renovation decisions.
Simply Group saw around a 30 per cent increase in home renovation loan applications in the second quarter of 2021 when compared to the first quarter of this year. Interestingly, this trend continued through August 2021, which reported a 15 per cent increase in loan applications when compared to July. From the summer months of May through August, June saw the most loan applications, followed by August and May, reflecting the surge in home improvement projects during summer.
“As Canadians spent a significant amount of time at home, their increased disposable income provided an opportunity to invest in home renovation projects,” said Lawrence Krimker, CEO of Simply Group and owner of SNAP Financial. “Our data reflects that Canadians continue to prioritize their home improvement plans in a financially viable way. As the winter months approach, we expect this trend to continue throughout the remainder of the year.”
Canadians are choosing to make essential home renovations throughout 2021
Loan applications for essential renovations such as roofing, windows and doors grew by 36 per cent in the second quarter of 2021 when compared to the first quarter. Non-essential loan applications grew around 23 per cent during the same time. These numbers continue to reflect an upward trajectory through the remaining months of 2021, especially as Canadians prepare for colder weather and start making essential upgrades.
“This year, the real estate market and housing sector saw heightened interest from Canadian homebuyers, with increased demand in home improvement projects from buyers as well as sellers,” added Lawrence Krimker. “As new homebuyers looked to refurbish their houses, sellers also upgraded their properties to drive up their selling price. The increase in applications for both non-essential and essential loans are reflective of this market trend.”
Quebec leads the provincial race for largest percentage change in home improvement applications from Q1 to Q2
On a provincial level, Simply Group reported that Quebec saw a 96 per cent increase in home renovation loan applications in Q2, compared to Q1 2021. Alberta followed with a 40 per cent increase in applications, and Ontario with a 12 per cent increase on loan applications in Q2, compared to Q1. This provincial breakdown suggests growth of home-improvement financing in Quebec – a trend that we expect to see continue through the remainder of the year.
About Simply Group
With more than $3 billion home improvement loans to over 500,000 Canadians, Simply Group (mysimplygroup.com) provides consumers with industry leading, high-efficiency, home comfort equipment and financing solutions, to modernize their residential properties. Simply Group knows that its people are its greatest asset and is proud to be Great Place to Work-Certified since 2016. In 2020, Simply Group was named Best Business of the Year by the Canadian SME National Business Awards.