Renovation Financing · Toronto & GTA
Renovate your home. Add real value.
There’s more than one way to pay for a renovation. We compare refinancing, HELOCs, second mortgages, purchase plus improvements and draw financing — and show you which one costs the least for your project.
Why Renovate
Same home. More value.
A well-planned renovation does more than refresh a room. It can raise your home’s appraised value, make it easier to sell, lower running costs — and in some cases create rental income. Financing it with your home’s equity usually costs far less than credit cards or unsecured loans.
Projects That Add Value
Where renovation dollars work hardest.
Not every upgrade pays you back equally. These are the projects that most often improve how lenders, appraisers and future buyers see your home.
Kitchens
The room buyers look at first. Updated layouts, storage and finishes can lift both appraisal value and how quickly a home sells.
Bathrooms
Adding or modernizing a bathroom is one of the most consistent ways to improve function and market appeal.
Basement & secondary suites
A legal suite can create rental income — and lenders may count a portion of that income when you qualify.
Additions & more living space
More bedrooms or square footage can change what your home is compared against — and what it is worth.
Energy-efficiency upgrades
Windows, insulation, heat pumps and roofs lower running costs and protect the value of the home over time.
Curb appeal & exterior
Siding, porches, landscaping and driveways shape first impressions and how appraisers see the property.
How much value a renovation adds depends on the home, the neighbourhood, the quality of the work and current market conditions. No renovation is guaranteed to recover its full cost.
Ways To Finance
Six ways to pay for your renovation.
The right option depends on your equity, your current mortgage, your credit and the size of the project. Here’s how each one works.
Refinance (equity take-out)
Replace your current mortgage with a larger one and take the difference as cash for the renovation.
- Borrow up to 80% of your home’s appraised value
- Usually the lowest rate of any equity option
- Best at renewal — breaking mid-term may mean a penalty
Home Equity Line of Credit (HELOC)
A revolving line secured by your home. Use it as invoices come in and pay interest only on what you’ve drawn.
- Line portion up to 65% of value, within 80% total
- Flexible for staged or ongoing projects
- Typically variable rate with interest-only minimums
Purchase Plus Improvements
Buying a home that needs work? Add the renovation budget to your purchase mortgage — even with a smaller down payment.
- Based on contractor quotes submitted before closing
- Funds held by your lawyer, released when work is verified
- One mortgage, one payment, at purchase-mortgage rates
Second Mortgage
Add a second loan behind your existing mortgage — useful when your first mortgage has a great rate or a large penalty to break.
- No need to break your existing mortgage
- Lump sum, often on a 1–2 year term
- Higher rate than a first mortgage; plan your exit
Private & Alternative Lending
When credit, income documentation or timing doesn’t fit the banks, alternative and private lenders focus more on equity and the plan.
- Options for self-employed and bruised-credit borrowers
- Short-term, with a clear plan to refinance after
- Higher costs — best used as a bridge
Construction Draw Mortgage
For structural renovations, additions or gut jobs, funds are advanced in stages as work is inspected and completed.
- Can be based on the as-completed value
- Interest only on funds drawn during the work
- Converts to a regular mortgage when finished
Loan-to-value limits, rates and terms vary by lender and program, and all financing is subject to qualification, appraisal and lender approval.
Which Option Fits
Start with your situation.
Your mortgage is up for renewal soon
Refinance
Roll the reno budget in at renewal and avoid prepayment penalties.
Your project will be paid in stages
HELOC
Draw only what you need, when you need it.
You’re buying a home that needs work
Purchase Plus Improvements
Finance the purchase and the upgrades together.
You have a low rate you don’t want to lose
Second mortgage or HELOC
Leave your first mortgage untouched.
Credit or income is hard to document
Alternative or private lender
Equity-focused approval with a plan to refinance later.
You’re adding a legal secondary suite
Secondary suite refinance
CMHC-insured program may allow borrowing above 80% — ask us about eligibility.
Before You Start
Smart moves before the first hammer swings.
Get written quotes first
Lenders and appraisers rely on detailed contractor quotes. Two or three itemized quotes also help you spot pricing outliers.
Budget a 10–15% contingency
Older homes hide surprises behind walls. Build a buffer in before you apply, not after work has started.
Time it with your renewal
If your term ends within a year, refinancing at renewal can avoid prepayment penalties entirely.
Pull the right permits
Unpermitted work can hurt resale value, insurance coverage and how a lender values the home.
Keep every receipt
Records of completed work support future appraisals, resale pricing and any insurance claims.
The Process
From first call to funded.
Review your project
We look at your plans, quotes, equity, current mortgage and timeline.
Compare your options
Refinance, HELOC, second mortgage or draw financing — side by side, with real costs.
Appraisal
The lender confirms value — as-is, or as-improved for some programs.
Approval & funding
We manage conditions and work with your lawyer to fund on time.
Renovate
You build with confidence. We stay on hand for draws and follow-ups.
Why Work With Us
Spend on the house, not the interest.
Your bank offers its own products. We compare options across many lenders, calculate penalties and total borrowing costs, and recommend the structure that leaves more of your budget for the renovation itself. We serve borrowers across the GTA, so you can work with a local Scarborough mortgage broker, Toronto mortgage broker, Markham mortgage broker, York Region mortgage broker, Durham Region mortgage broker or Peel Region mortgage broker.
30+ lenders
Banks, credit unions, trust companies and private lenders — compared on your behalf.
Value-first advice
We help you weigh what a project costs against what it can add to your home.
Penalty math done for you
We calculate break costs so you know whether to refinance now or use a HELOC or second.
Your side of the table
Our fee is typically paid by the lender. Expert guidance at no cost to you on most files.
Licensed & regulated
FSRA-licensed brokerage serving Toronto, the GTA and Ontario.
Long-term thinking
We structure your reno financing around your next renewal, not just today’s rate.
Common Questions
What homeowners ask before they renovate.
It depends on your equity, where you are in your mortgage term, your credit and income, and the size of the project. Refinancing usually offers the lowest rate, a HELOC offers the most flexibility, a second mortgage protects an existing low rate, and purchase plus improvements works when you’re buying. We compare the true costs of each for your situation.
With a refinance, most lenders allow total borrowing up to 80% of your home’s appraised value, minus what you already owe. A HELOC portion is typically limited to 65% of value within that 80% total. Second mortgages and private lenders may go further in some cases, subject to lender criteria.
Some programs — such as purchase plus improvements, construction draw mortgages and the CMHC secondary suite refinance — can consider the as-improved value. Funds are usually released once the work is completed and verified.
A HELOC suits projects paid in stages because you only pay interest on what you use. A refinance suits a larger, known budget and often has a lower rate, but breaking a mortgage mid-term may trigger a prepayment penalty. We run the numbers both ways.
Many renovations add value, especially kitchens, bathrooms, added living space and legal suites — but not every dollar spent is recovered at sale. Location, quality of work and what comparable homes offer all matter. We can help you think through cost versus value before you commit.
Often, yes. Many lenders will count a portion of projected or existing rental income from a legal secondary suite when qualifying, subject to lender policy and documentation such as a lease or appraiser rent estimate.
Yes. Self-employed borrowers can qualify through lenders that use stated income, business bank statements or other documentation, as well as equity-based alternative lenders.
A HELOC or refinance often takes two to four weeks from application to funding, depending on the appraisal, documentation and your lawyer. Draw-based and purchase plus improvements files depend on the project timeline.
Get Started
Find the smartest way to fund your reno.
Tell us about your home and your project. We’ll show you how much you may be able to access and which option costs the least — no pressure, no obligation.
Explore your renovation options
Takes about 60 seconds. A licensed broker follows up within one business day.
Financing is subject to qualification, appraisal, lender approval and applicable conditions. Loan-to-value limits and program availability vary by lender. Serving Toronto, the GTA & all of Ontario. FSRA Lic. 13747 · FSRA Regulated Brokerage.