7 Red Flags When Hiring a Contractor in Canada

Every year, Canadian police services warn homeowners about renovation scams that follow the same script. In the GTA alone, police have reported cases where alleged contractors collected deposits worth hundreds of thousands of dollars for work that was never finished. The good news: most bad actors show the same warning signs before they ever touch your home. Here are seven to watch for.

1. They knock on your door with a "deal"

A contractor shows up uninvited, claims they are working nearby, and offers a discounted price because they have leftover materials. Police across Ontario, including Hamilton Police, flag this as one of the most common renovation scam patterns. The offer looks convenient and cheap, but victims often end up paying thousands for poor-quality, incomplete, or unnecessary work. Legitimate contractors are busy; they rarely need to hunt for work on your street.

2. The price seems too good to be true

Renovation fraud alerts consistently warn about deeply discounted bids. A bid far below the others is not a bargain, it usually means cut corners, surprise add-ons once work starts, or a contractor who disappears with your deposit. Get at least three quotes and compare the scope, not just the price.

3. They want a large deposit upfront

Never let a contractor talk you into a large down payment to cover materials. Police and consumer guides in Canada recommend keeping deposits small (around 10%) and never paying the full amount before the work is done. Legitimate renovation companies have enough credit to buy the materials they need. If a contractor cannot start without most of the money in hand, walk away.

4. Cash-only, no paperwork

The Canadian Home Builders' Association warns about contractors who offer a cash deal. No contract means no paper trail, and with it go permits, inspections, and any proof of what was agreed. Pay by traceable methods and insist on a detailed written contract that spells out the scope, materials, start date, milestones, completion date, and cleanup responsibilities.

5. They pressure you to decide now

"One-day-only" deals, pressure to sign immediately, or demands for on-the-spot payment are classic tactics. Hamilton Police note that scammers may even become pushy or threaten to call the "city inspector" when homeowners refuse extra payments. A real professional will give you time to compare options and talk to family.

6. The details do not add up

Watch for mismatched company names between the contract and the payment request, workers arriving in unmarked vehicles, and no proof of licensing, insurance, or workers' compensation coverage. Without proper liability insurance, an accident on your property during the project could leave you liable. If a contractor is reluctant to show credentials, treat that as a dealbreaker.

7. The contract is vague or missing

A proper contract protects both sides. It should include the full scope of work, materials, schedule, payment milestones, and a written warranty. In Ontario, if you sign a home renovation or repair contract worth $50 or more inside your home, you have a 10-day cooling-off period during which you can cancel for any reason without fees. Do not let work start until the paperwork is right.

How to protect yourself

Take your time, get multiple written quotes, verify insurance and credentials, and check reviews and references before signing anything. Fake websites and social media pages are easy to build, so a flashy online presence alone is not proof a business is legitimate. Ask for addresses or nearby intersections of past work when possible, and be wary of online ads with no verifiable track record.

One of the safest ways to start is to post your request on Proferly. Describe the job once, attach photos if useful, and compare written offers from local businesses in one place. Posting is completely free, and your phone number stays private until you choose a business.