4 ways to finance a renovation
Refinance / equity take-out
Break or renew into a larger mortgage (up to 80% of your home's value) and pull out equity as cash for the reno. Lowest rate of the options; best for larger projects.
HELOC
A revolving line up to 65% LTV (80% combined) you draw as the project progresses, interest-only. Flexible for phased or DIY renos. See our HELOC page.
Purchase Plus Improvements
Buying a home that needs work? Roll up to $40,000 of renovations into your purchase mortgage at the same low rate — based on the as-improved value. Great for first-time buyers.
Construction / draw mortgage
For major structural work or additions, funds release in stages as work is completed and inspected. Best for gut renovations and rebuilds.
Renovation financing — FAQ
What's the best way to finance a home renovation in Canada?
It depends on size and timing. For a large reno, a refinance / equity take-out gives the lowest rate. For phased/DIY work, a HELOC is most flexible. Buying a fixer-upper? Purchase Plus Improvements rolls reno costs into the purchase mortgage. We model all of them on your file.
What is Purchase Plus Improvements?
An insured program that lets you finance up to $40,000 (or 10% of the as-improved value) of renovations into your purchase mortgage — at your regular low mortgage rate instead of a credit card or unsecured loan. The lender advances the reno funds once the work is verified.
Can I borrow against my home's increased value after renovating?
Yes — once the work is done and the home is reappraised higher, you can refinance up to 80% of the new value. Many homeowners do the reno on a HELOC, then refinance to the new value to pay it off at a lower rate.
How much can I borrow for renovations?
Through a refinance, up to 80% of your current home value minus your existing mortgage. Example: a $900K home × 80% = $720K, minus a $400K balance = up to $320K available. Use our refinance calculator.
Is renovation financing tax-deductible?
Generally no for a personal residence. If the renovation is on a rental or a portion used to earn income, interest may be deductible — talk to your accountant; we'll structure the borrowing to support it.