What is Renovation Financing?
Renovation and construction financing is a specialized type of mortgage that provides funding for building a new home or upgrading an existing property. Whether it’s a full-scale custom build, a home addition, or interior remodeling, this financing option helps cover the costs of materials, labor, and related expenses throughout the construction or renovation process.
This type of mortgage is ideal for:
- Homeowners planning major renovations or upgrades
- Buyers purchasing fixer-uppers
- Individuals building a home from the ground up
- Property investors looking to add value through improvements
Renovation and construction loans offer flexible terms and are often structured to release funds in stages as the work progresses. This ensures a smooth and manageable financial process from start to finish.
Benefits
Flexible Financing Options
Choose from customized renovation and construction financing solutions designed to meet the unique needs of your project. Enjoy the flexibility of drawing funds as needed, giving you full control over your budget. With this type of mortgage, interest is only charged on the amount used—making it a cost-effective option for homeowners and builders managing ongoing construction or remodeling work.
Payment-Free Construction Loan
Stay focused on your construction or renovation project without the stress of making monthly payments during the building phase. With this flexible financing option, funds are made available as needed, and interest is only charged on the amount used. This helps homeowners and builders manage their budgets more efficiently while keeping projects on track from start to finish.
Trusted Mortgage Guidance
The in-house construction and renovation lending department assists in navigating the complexities of renovation and construction financing, ensuring the best rates and terms are secured. Access tailored financing solutions that cater to the unique needs of any home renovation or new build project. Receive expert support and personalized guidance to ensure a smooth and successful construction or renovation process.
Post-Construction Savings Plans
Upon project completion, assistance is provided to secure lower-interest mortgage options, offering significant savings over the long term. Access competitive mortgage rates and tailored financing solutions designed to reduce overall costs and ensure the best terms for renovation projects or new home builds. Maximize savings while ensuring financial stability with strategic mortgage solutions.
Renovation Financing Options in Canada
Whether you’re upgrading your kitchen, finishing a basement, or making your home more energy-efficient, there are several financing options available to support your renovation goals.
Some of the most popular renovation financing methods include:
- Purchase Plus Improvements Mortgage – Roll renovation costs into your mortgage when buying a home
- Home Equity Line of Credit (HELOC) – Tap into your home’s equity for flexible borrowing
- Personal Loans or Lines of Credit – Unsecured options for smaller renovation projects
- Government Grants & Rebates – Incentives for energy-efficient and green upgrades
External Resources
Internal Resources
FAQs
What type of Project can be financed with renovation/construction loan?
Renovation and construction loans can finance a variety of projects, including home upgrades, major renovations, new home construction, property additions, and even laneway homes.
What are the eligibility criteria for renovation/construction financing?
Eligibility for renovation and construction financing typically depends on factors such as your property’s value and equity, the scope of the project, and the property’s location. The team will collaborate with you to assess your financial situation and project details to identify the most suitable construction financing options.
What should I expact during the application process?
During the application process, you’ll need to provide details about your renovation or construction project, including cost estimates, timelines, and your financial situation. The team will guide you through each step, from the initial application to securing the best loan terms for your construction or renovation financing.
Can I refinance the load after the project is completed?
Yes, once your renovation or construction project is complete, you can refinance your loan to secure more favorable terms, such as a lower interest rate. The team will assist in finding the best refinancing options to ensure long-term savings and financial stability for your construction financing.