A Home Renovation Mortgage: What to Know

Renovation mortgages are often called either purchase plus improvement loans or refinance plus improvement loans. In both cases, whether you are purchasing a home that needs some updates, or refinancing and using some of the equity to fund renovations, the idea is the same — the cost of the improvements will be added to the mortgage and you’ll have just one low monthly payment to make and an improved home to live in. And all of these will be at a much lower rate than a typical credit card or personal line of credit would cost!

Tips to make this type of mortgage financing work for you:

  • Determine exactly what improvements you want to make.
  • Make a realistic project budget, including labour and materials, for the improvements you have in mind.
  • Ask your mortgage advisor to calculate your qualified borrowing limits based on the as-improved cost of your mortgage.

This type of mortgage can be particularly useful for homeowners who want to make significant improvements to their property but do not have the funds available to pay for the project in cash.

Getting a Home Renovation Mortgage

When seeking a home renovation mortgage in Canada, it’s crucial to be aware of the various options available to you. These can include obtaining a second mortgage, using home equity, or applying for personal loans. To navigate this complex process and ensure that the most suitable solution is identified for your specific circumstances, it’s advisable to work with a mortgage professional who can provide expert guidance and support.

Why Choose Enrich Mortgage Group

Enrich Mortgage Group is a team of highly experienced professionals who are committed to assisting homeowners in Canada. We take pride in finding the best possible solutions for our clients, whether they are looking to finance their home renovation costs or secure a separate loan. Our expertise and knowledge make us the perfect partner to help you through the process of securing funds for your renovation project. With our assistance, you can rest assured that your project will be adequately funded and completed without any financial strain.