Renovation Financing

Yes, your mortgage can pay for your new kitchen and bathroom!

Using today's great mortgage rates

Do you want to increase the comfort and enjoyment of your home because you're planning to be there for the foreseeable future? If your dream home is one renovation away, we've got a smart-money tip: Reno & Roll - rolling the cost of your renovation into your mortgage for one easy monthly payment, and then using your prepayment features to pay if off faster.

If you've owned your home for a few years, chances are you've been building up some nice equity. And with mortgage rates hovering around historic lows, this is a great time to look at rolling the cost of your renovation into your mortgage. In fact, you might find enough interest savings in your new mortgage to help knock down the overall cost.

Purchase Plus Improvements Mortgage

Many homebuyers looking to buy older properties find themselves in a common predicament: they've found a property that suits them, but it needs some costly and immediate upgrades. Increasingly, buyers are adding the costs of those immediate renovations into their mortgage, instead of racking up credit card bills or selling investments to pay for the upgrades. Known as a "purchase plus improvements" mortgage, this type of mortgage covers the sale price of the home, plus any renovations that would increase the value of the property, with as little as 5 per cent down.

If you're buying a home but want to add a second storey, finish a basement or redo a kitchen, it can make a lot of sense to add those costs to your mortgage. That way you can spread your payments over the life of the mortgage and have a cost-effective way to get your dream home. You can also use your pre-payment privileges to pay the renovation off faster. The process is quite simple:

  • Obtain cost estimates for the upgrades
  • Get your appraisal - for the value of the property "as is" and the estimated value of the property once the improvements are completed
  • Renovation costs are included in your mortgage 
  • Complete your upgrades
  • Renovation funds are released by your solicitor upon completion

Talk to your Mortgage Consultant about the full range of renovation financing options available to you.