A Guide To Grades: Understanding The Difference

Understanding Wood Grades: A Simple Guide To Choosing The Right Look

When it comes to wood, not all boards are created equal — and that’s exactly the point. Whether you're building a deck, installing siding, or finishing an interior space, wood grading helps you understand the appearance, character, and performance you can expect from each board.

But grading isn’t one-size-fits-all. Each species of wood has its own unique characteristics — knots, grain patterns, and colour variations. To help you navigate it all, here’s a breakdown of the most common grades, what they mean, and what we offer at Muskoka Timber Mills.

Wood grades typically differ amongst species. Grading used in Western species (Western Red Cedar & Douglas Fir) differs from the grading terminology used for Eastern species (Eastern White Pine). In Western species, we use terms like STK, Vertical Grain, and Mixed Grain. In Eastern species, we use #1, #2, and Select. See below for the details.

Scroll to the bottom to view our Grade Guide PDF.

Species Grading

It’s important to remember: not all grades apply to all species.

Each wood species is unique — a knot in Eastern White Cedar is very different from a knot in Douglas Fir. Grading systems vary depending on the natural characteristics of the species and how the lumber is used. So while two boards might both be marked “#2”, they can look and perform very differently depending on what species they come from.

While grades provide a general framework, species characteristics play a major role in how lumber appears and performs in real-world applications. Understanding both helps ensure you choose the right material for your project.

What’s the difference between #1 and #2 lumber?

While both #1 and #2 grades are commonly used in construction and exterior projects, the key differences come down to appearance, allowable characteristics, and cost.

#1 lumber is a higher grade with fewer knots, smaller imperfections, and a more uniform appearance. It’s often selected for projects where the wood will be highly visible and a cleaner, more refined look is preferred, such as siding, interior finishes, and premium exterior applications.

#2 lumber allows for more knots and natural variation. It remains structurally sound and widely used, but it typically has a more rustic appearance compared to #1. This grade is often chosen when a more natural look is acceptable or when budget is a consideration.

In many cases, lumber is also supplied as a #2 & Better (2BTR) or mixed-grade range, which includes a combination of #1 and #2 material. This allows for a balance of appearance and value within a single bundle of lumber, giving builders flexibility while maintaining consistent performance.

In many cases, #1 lumber is chosen when appearance is a higher priority, while #2 lumber is selected when cost efficiency or a more natural aesthetic is the goal. Both grades are structurally sound, and the best choice depends on how visible the material will be and the overall design intent of the project.

What does BTR mean in lumber grading?

BTR stands for “and Better,” and is used in lumber grading to indicate that the material meets a minimum grade and may include boards of higher quality within the same bundle. In many cases, a #2 & BTR (2BTR) designation means the lumber is primarily #2 grade or better, and may include a mix of #1 boards.

At its core, “BTR” simply means the lumber is that grade “and better,” rather than being limited strictly to a single grade.

At Muskoka Timber Mills, our #1,2 Contractor Mix aligns closely with what is commonly referred to as a #2 & Better (2BTR) range. This blended approach combines #1 and #2 lumber, offering both structural reliability and improved appearance where higher-grade boards are present.

Using BTR or 2BTR lumber is especially useful for projects where a balance between value and appearance matters. It allows you to work with quality lumber while optimizing for both budget and aesthetics, without needing to sort through individual boards.

Now, there is more to the lumber world than what is covered above. The grades listed here represent the most common species and grading systems we work with on a daily basis. Hardwoods introduce additional grading considerations, which vary even further.

That’s why our team is here — to help you choose the right grade for your project, your design vision, and your budget. Give us a call to learn more or visit our showroom to explore your options in person.