Miranda Karl,
Mortgage Professional

Let’s Finance Your Renovation

So, you’ve found a home you’d love to buy, but it’s a major fixer-upper—or maybe you need money to renovate the home you already own. Fear not! A renovation mortgage bundles those costs into your mortgage, making it easier for you to pay them off over time.

Of course, you’ll need an experienced pro to walk you through the application process and make sure you’re getting the best deal. Lucky you—that’s where I come in.

newly renovated house financed through mortgage

Easy as 1, 2, 3

How to Make Your Renovation Mortgage Work for You

Renovation mortgages work a bit differently than traditional mortgage agreements. It might seem complex at first—but when you come to me for help, I’ll do the heavy lifting. Here are the basic steps involved:

1

Estimating the Costs of Your Renovation

Before you can bundle your renovation costs in with your mortgage, you’ll have to have an idea of what they’ll be. You’ll need to provide an estimate for:

Your basic renovation costs
The costs of upgrading furniture and appliances
Extra costs for unexpected issues that come up during the process

Not sure where to start? Don’t worry; I’ve done this before. When you contact me, I’ll let you know exactly what kind of information you need.

2

Choosing Your Renovation Mortgage

Every mortgage application involves filling out forms and collecting documents, but renovation mortgages (also called Purchase Plus Improvements) have some extra steps. You’ll need to know:

The value (or potential value) of your property
How you plan to renovate or remodel the property
How to compare renovation mortgage options from different lenders

I’ll be able to walk you through the steps involved and find renovation mortgage options that work for your situation. Together, we’ll help you build your dream home!

3

Completing Your Application

Once you’ve chosen the renovation mortgage you want to apply for, we’ll fill out the paperwork together. I’ll be there to help you:

Collect all required supporting documents
Submit the final application to your lender
Troubleshoot in case any issues come up while your application is being processed

I’ll also be in communication with you the entire time so you remain aware of your application status. Whenever there’s an update, you’ll know ASAP.

Ready to Go?

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Still Curious?

FAQ

Renovations can be enough work without having to worry about your finances. Here are some answers to common questions about renovation mortgages.

How do I calculate my renovation budget?

The average spend for a home renovation these days is around $10,000 CAD, but costs can vary greatly. Some of the factors that will contribute to the costs of your home renovation include:

How old the property is
How large the property is
The complexity of your planned renovations
Your renovation timeline
The quality of the labour, materials, and fixtures used
The costs for permits, appraisals, and fees in your area

To get an idea of the likely costs for specific projects, you can use HomeStars’ cost guides. But working with an experienced professional is the best way to figure out how much money you’re going to need.

Is my rate impacted by adding renovations to my budget?

Bundling renovations into your mortgage shouldn’t increase your rate—but you will be paying interest on the funds borrowed for your renovation costs. These funds will typically be held back until your renovations are completed, at which time they’ll be released to you.

Is there a limit to how long renovations can take?

Since you’ll be paying interest on the funds held for your renovations until that work is completed, it’s in your best interests to complete your renovations as soon as possible. However, you generally have up to 12 months to complete the work (depending on the lender).

Is there a limit to how much I can request?

Various lenders offer different options for how much money you can request as part of a renovation mortgage. For example, the Canadian Mortgage and Housing Corporation (CMHC) offers up to 95% of the property’s value after renovations with a 5% downpayment.

If you already own a home and want to renovate it, refinancing your mortgage can allow you to borrow up to 80% of the appraised value of your home (after considering the amount still left to pay on it). Together, we’ll look at how much money you need for your renovations and find an option that supports your goals.

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