Equity & Renovation
Your home's equity is one of your most powerful financial tools. The question is which method of access makes the most sense for your situation.
Three Options
01
A revolving credit facility secured against your home. Draw funds as needed, pay interest only on what you use. Maximum 65% LTV. Best suited for staged renovations where costs come in phases: draw as the project progresses, repay over time.
02
Break your existing mortgage and replace it with a larger one, taking out the difference in cash. You get a lump sum at your mortgage rate. The trade-off: if you break before your term is up, there's a penalty, potentially a large one on a fixed rate. Best timed with a renewal.
03
A separate loan behind your first mortgage, leaving your primary rate untouched. Higher rate than your first mortgage, but avoids the prepayment penalty. Best when you're mid-term, the penalty would be large, and you need funds now.
Decision Guide
Near renewal
If your term is up in the next 3–6 months, a refinance is often the cleanest approach. You avoid a penalty and reset your mortgage on favourable terms with the renovation funds built in.
Mid-term, large penalty
If breaking your mortgage would cost $8,000–$20,000+, a second mortgage leaves your first mortgage intact and funds your renovation at a higher rate but lower total cost.
Staged or ongoing renovation
A HELOC is ideal when costs are spread over time. Pay interest only on what you draw. As you repay, the credit is available again. No refinancing required for future phases.
Additional Options
Some lenders and insurers offer purchase-plus-improvements mortgages, letting you roll renovation costs into your mortgage at purchase, before the work is done. The appraisal is based on the property's value after completion.
CMHC's MLI Select program offers green renovation incentives for qualifying rental properties. Programs exist specifically for energy efficiency upgrades through some credit unions.
Kyle will map out the full set of options for your specific renovation scope, property, and mortgage situation, including any programs that may lower your rate or extend your amortization.
Get Started
Not sure if this applies to your situation? One call usually gives you a clear answer.
