Mortgage Solutions · Renovation Financing
There's no single "renovation mortgage." There are four routes that use mortgage debt to fund a reno, each suited to a different situation. Most files don't fail on the math; they fail because the wrong route was chosen.
▍ The route matcher
The right route depends on whether you already own the home, how big the project is, and whether you need the money upfront or as you go. Answer three questions.
You own the home and want to draw as invoices come in, so a line of credit lets you pay interest only on what you've actually spent, with no lump sum sitting idle.
Explore the HELOC pageThe full menu
Each uses mortgage debt, but the rate, structure, and timing are different. Your matched route is highlighted above. Here's how all four work.
A revolving line you draw on as invoices come in, paying interest only on what you've used. See our HELOC page for the full breakdown.
Break your existing mortgage, register a bigger one, and take the cash out at closing. Best for larger structural projects with a known budget. See our refinance page for the full breakdown.
Buy a house and roll the reno into one mortgage. The lender approves you on the post-renovation value, advances purchase funds at closing, and holds back the reno portion until the work is done and re-inspected.
For major work that materially changes the property: additions, gut renovations, knock-down rebuilds. The lender advances funds in stages tied to construction progress. See our construction page for the full breakdown.
The appraisal is the unlock
Same fundamental math as any equity loan: home value × LTV − existing mortgage = capacity. What changes between routes is which value the lender uses.
Based on your home's current appraised value, capped at 80% combined loan-to-value.
Based on the post-renovation appraised value, often insured, with a down payment as low as 5%.
Based on the as-completed appraised value, typically 75% LTV during the build.
The "as-completed" appraisal is what unlocks projects that wouldn't pencil out at current value. It lets the lender finance against what the home will be worth, not what it's worth today.
Timing and product, not just math
Most renovation files don't fail because the math is wrong. They fail because the timing and product choice are wrong.
We run the all-in cost (rate, penalty, fees, payment) for each and recommend the cheapest fit for your specific timeline.
For purchase-plus-improvements and construction, the appraisal needs to value the work correctly. We brief the appraiser with contractor quotes and scope documents.
Purchase-plus-improvements deals need careful coordination with the lawyer, contractor, and lender so funds release on completion without a cash-flow gap mid-project.
Once the project is done, a construction mortgage gets replaced with a regular insured or conventional mortgage at standard rates. We line this up before the build ends so there's no gap.
No commitment to start. Tell us the scope and whether you own or are buying, and we'll map it against all four routes and price each.
Common questions
Tell us about your situation. We'll match you to the right product and lender.
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