"Last night my wife was saying that we have the option of staying where we are and saving so that we can buy and do the renovations later"

I would follow the advice of your wife.

There is an old saying: If in doubt, don't! And from what you have written here, you most certainly do have some doubts about the decision you would like to make. Therefore I would postpone making the renovations until you can save up some money to make them. And remember this: If you are not able to save up the money to make the renovations, then thank God that you waited, because if you could not save the money to make the renovations, then you would not have had the money to make the loan payments either.