Home renovation mortgage:
fund your reno at mortgage rates,
not credit-card rates.
Refinance, HELOC, or Purchase Plus Improvements — there’s a smart way to fund any reno, big or small, at a fraction of unsecured-loan cost. We compare all of them across 100+ lenders for your file.
A home renovation mortgage in Canada lets you finance improvements either through a purchase-plus-improvements mortgage (roll up to 20% of the purchase price into your mortgage at closing) or by refinancing equity post-renovation. CMHC insures purchase-plus-improvements up to $40,000 with one appraisal; larger renos use a draw mortgage or a HELOC. A broker confirms which product fits your scope before permits are pulled.
Four ways to fund
a renovation at mortgage rates.
The right tool depends on your project size, timing, and whether you're buying or already own. We compare all four across 100+ lenders on your file.
Refinance / equity take-out
Break or renew into a larger mortgage up to 80% of your home's value and pull equity as cash for the reno. Usually the lowest rate for existing owners funding a large, defined project — one payment, one rate.
Home equity line of credit
A revolving line up to 65% LTV (80% combined) you draw as the project progresses and repay interest-only. Ideal for phased or DIY renos where the budget is still firming up.
Purchase Plus Improvements
Buying a fixer-upper? Roll the renovation cost into your insured purchase mortgage at the same rate, with as little as 5% down based on the as-improved value. Great for first-time buyers.
Insured refinance — secondary suite
Adding a basement or garden suite? A federal rule since Jan 15, 2025 lets you refinance up to 90% of the as-improved value (on homes under $2M) — higher than the standard 80% cap.
How to finance
your renovation.
Project first, options second, decision last.
That order makes the difference.
Tell us about the project
Share the scope, the quotes you have, and whether you're buying a fixer-upper or renovating a home you already own. 5 minutes of context shapes everything that follows.
Compare the options
We model refinance vs. HELOC vs. Purchase Plus Improvements on your numbers across 100+ lenders and disclose any fees up front. You see every option before committing a dollar.
Fund the reno
We place it with the right lender and line up the appraisal, draw schedule, and inspections so funds land when the work needs them — no delays, no surprises.
We can help across
every reno scenario.
Tap any situation below to see how we approach it.
If you’re…You're buying a fixer-upper and want to roll reno costs in
You're buying a fixer-upper and want to roll reno costs in
Purchase Plus Improvements finances the work into your insured purchase mortgage at your regular rate — as little as 5% down, based on the as-improved value. One mortgage, one closing, no separate reno loan.
Start my pre-approvalIf you’re…You already own your home and need cash for a large project
You already own your home and need cash for a large project
A refinance to 80% of your current value frees equity as cash at mortgage rates. On a $900K home with a $400K balance, up to $320K is accessible. We compute the exact penalty before you decide.
See my equityIf you’re…Your renovation is phased or you're still getting quotes
Your renovation is phased or you're still getting quotes
A HELOC lets you draw as the project progresses and pay interest only on what you've actually used — perfect for staged work, DIY renos, or budgets that are still firming up.
Explore HELOC optionsIf you’re…You're adding a secondary suite (basement or garden suite)
You're adding a secondary suite (basement or garden suite)
Since Jan 15, 2025, an insured refinance can reach 90% of the as-improved value on homes under $2M — higher than the standard 80% cap. We structure the file to maximise what you can borrow for the suite.
Model my suite refinanceIf you’re…You're planning a gut renovation or structural addition
You're planning a gut renovation or structural addition
A construction draw mortgage releases funds in stages as work is completed and inspected — the right structure for major rebuilds. We coordinate the appraisal, draw schedule, and inspections so funds land on time.
See construction optionsIf you’re…You want to borrow against the value added by completed work
You want to borrow against the value added by completed work
Once the reno is done and the home re-appraised higher, you can refinance to 80% of the new value. A common sequence: fund on HELOC, renovate, refinance to the new value, pay the line off at a lower fixed rate.
Model my numbersMortgage rate vs.
credit-card rate.
The difference between funding a $60K kitchen on credit and rolling it into a refinance at mortgage rates.
- Renovation cost$60,000
- Financing methodCredit card
- Interest rate21%
- Monthly interest~$1,050
- Interest over 5 yrs~$33,500+
- Total 5-year cost~$93,500
- Same $60K renovation$60,000
- Financing methodEquity refinance
- Illustrative rate~4.14% fixed
- Monthly payment add~$320/month
- Interest over 5 yrs~$10,500
- Total 5-year cost~$70,500
Illustrative only — your rate, penalty, and savings will differ. We compute your exact numbers before you commit. Try the refinance calculator.
Finance a fixer-upper at your mortgage rate — not a renovation loan rate
Purchase Plus Improvements (PPI) lets you roll approved renovation costs into your insured purchase mortgage at closing — one application, one rate, with as little as 5% down based on the as-improved appraised value.
One mortgage, one closing
The lender values the home on its as-improved value before you close. The reno budget is added to the purchase price; the total becomes the lending base. Funds are held back and released after the work is verified — typically by a progress draw inspection.
CMHC, Sagen & Canada Guaranty
All three insurers support PPI on insured purchases (<20% down). CMHC caps at $40,000 or 20% of purchase price (one appraisal); Sagen and Canada Guaranty allow up to $40,000 with similar rules. Lenders may set tighter caps — a broker confirms which lender is most flexible for your project.
Funds released after inspection
At closing the reno funds go into trust. Once the work is complete (or at progress milestones), an inspector verifies the work and funds are released. Contractors must provide quotes before approval; holdbacks mean you need bridge capital if contractors require deposits up front.
Use PPI when you’re buying and the work is defined before closing (kitchen, roof, bathroom). Use a HELOC for phased or DIY work where you draw irregularly. Use a refinance for a large post-purchase reno where you have equity and a defined scope. When in doubt, a broker models all three scenarios on your numbers before you commit.
Common questions,
clear answers.
Refinance limits, HELOC vs. equity, Purchase Plus Improvements, tax deductibility — answered plainly.
What's the best way to finance a home renovation in Canada?
It depends on size and timing. For a large, well-defined reno, a refinance / equity take-out gives the lowest rate. For phased or 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 purchase program that lets you finance renovation costs into your purchase mortgage with as little as 5% down, at your regular mortgage rate instead of a credit card or unsecured loan. The lending value is the lesser of the as-improved appraised value or the purchase price plus improvement costs. Lenders may set their own caps on the improvement amount. The reno funds are advanced after closing 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 fund the reno on a HELOC, then refinance to the new value to pay it off at a lower fixed rate.
How much can I borrow for renovations through a refinance?
Up to 80% of your current home value minus your existing mortgage balance. Example: a $900K home × 80% = $720K maximum financing, minus a $400K balance = up to $320K accessible for your project. Use our refinance calculator to model your numbers.
Is renovation financing tax-deductible?
Generally no for a personal residence. Interest is deductible only when the borrowed money is used to earn income from a business or property — for example, renovating a rental unit. If part of the work is on a rental unit, ask your accountant how to track the borrowed funds; we can structure a separate loan or sub-account if they recommend it.
We’ll try to beat your rate.
If we can’t, we pay you $500.¹
¹ Rate Beat: eligible Big-6 bank written offers only · same product, term & amount · $500 paid to you or your nominated charity at closing · conditions apply
Find a renovation mortgage specialist in your city
Renovation financing options — refinance limits, HELOC rates, Purchase Plus Improvements lender caps — vary by property value and lender. Our advisors know which lenders are most flexible for your market.