Mortgage Blog

What is Renovation Mortgage Financing?

January 20, 2022 | Posted by: Kelleway Mortgage Architects

There are many options available to help you finance renovations, so you can stop dreaming and start living.

New home owners

CMHC Mortgage Loan Insurance can help you obtain financing for both the purchase of your home and the renovations — up to 95% of the value after renovations — with a minimum down payment of 5%.

Essentially, at the time you apply for your mortgage, you will also estimate all of the costs associated with your renovations and add those to the mortgage. For first-time home buyers this can be an extremely smart option as they may not have enough saved up to purchase the house and then immediately take on a huge renovation project. However, whenever undertaking any renovation project, whether financed yourself or through a mortgage, you should always put aside some extra for the “unknown”. This might even just be upgraded appliances or furniture when the renovations are through, but having some money set aside is never a bad thing!

But, what if you already own a home and want to renovate?

Mortgage refinancing is an option that many look into if they do not want to obtain funds in other ways (lines of credit, loans, etc.). Mortgage refinancing takes into consideration how much left you owe on the house, and allows you to borrow up to 80% of the appraised value.

Refinancing your mortgage allows you to undertake the renovations, but spread the payment out over a longer period of time with generally less interest than a credit card or personal loan rates.

Whether your undertaking renovation costs in your mortgage, or simply just looking to increase the ROI, it’s important to know what areas of your house are worth investing in. Understanding the best renovations for the greatest ROI will help you prioritize your to-do list.

Call me today at 604-476-0053 to see how you can finance your next renovation project!

Back to Main Blog Page