The time it takes to renovate a home, the inconvenience involved, and the cost of the work are all cited as 'headaches' in a recent survey of Canadian homeowners. Even so, 80 per cent of Canadians would rather renovate than move to a different house.

Conducted by Ipsos-Reid for RBC Royal Bank, the survey says that renovation intentions have dropped six per cent from last year, but that 70 per cent of homeowners are still planning renovations or home improvements during the next two years.

Canada Mortgage and Housing Corp. forecasts that renovation spending will climb by 8.2 per cent this year, to $43.5 billion. It says that growth next year will slow to 6.9 per cent or $46.5 billion in 2007, due to slower job growth and a decrease in new home construction and resale activity.

Canada's hot housing market during the last several years has created a corresponding boom in renovations. Surveys by CMHC show that households tend to renovate their houses within the first three years following the purchase of an existing home.

The RBC survey says that Canadians will spend an average of $8,982 on their renovations. Forty-eight per cent plan to do the work themselves, while 40 per cent will use a contractor. The most popular renovations being planned are to bathrooms (36 per cent), kitchens (28 per cent) and basements (27 per cent). Painting, staining and caulking are the most common tasks planned, followed by improvements to floors, windows and roofs.

While homeowners are eager to fix up their homes and seem confident about tackling the work themselves, RBC says many people have trouble establishing realistic renovation budgets. Of the 64 per cent of Canadians who budged for work completed during the last two years, four of out 10 went over their budgets -- by an average of 88 per cent. The bank also says that only 13 per cent of Canadians planning a renovation would consider using a home equity line of credit to pay for it, even though that is the lowest cost of all borrowing options.

"When people are looking for a mortgage they're usually very cost sensitive, and they seek advice about the best possible rate and product combination," says Catherine Adams, a vice-president with RBC Royal Bank. "We don't always see those same savvy cost comparisons being made when it comes to home renovations."

Sixty-nine per cent of those planning to renovate said they would pay for all of it with cash or from their savings. Seventeen per cent said some would be paid with cash or savings, and only one per cent said they would borrow all of the money required for the job. Adams says homeowners should get advice about their lowest financing options before they take on a home improvement project.

Renovation fever is most rampant in the Atlantic Provinces, where 80 per cent of residents are planning a renovation in the next two years. The lowest renovation intentions are in British Columbia, where 65 per cent intend to renovate.

The explosion of "big box" retailers on the Canadian marketplace has had a profound effect on those who plan to renovate. These large retailers are the number one source of inspiration for those planning to renovate. That's good news for Lowe's, the latest big box retailer to enter the Canadian market. A couple of weeks ago, Lowe's broke ground on its first Canadian store, in Hamilton, Ont. It also announced that it has identified new locations in Brantford, South Brampton and Toronto, and there are nine more locations about to be approved. Lowe's says the first stores will open in the second half of 2007, and that each store represents an average investment of $20.5 million.

Lowe's joins Canada's two other major big-box retailers, Home Depot and Rona, to duke it out for a piece of the residential building materials market.

After the big box stores, magazines provide the inspiration for 39 per cent of survey respondents, while TV home improvement shows inspired 29 per cent and the Internet was credited with providing design inspiration for 23 per cent. The survey noted that for the most affluent homeowners, magazines provide the most inspiration.