Renovation Refinance



Lenders not only help you to buy a new home, but also to refurbish it. You can wait for the market rate to reach to its lowest and then demand for a renovation refinance from your lender. Amalgamating the cost of renovation into your existing mortgage will not only revamp your kitchens and bathrooms, but also bring down the interest rate on overall mortgage.


Purchase Plus Improvements Program

In Canada, you can make your new home just right with tailored improvements, immediately after taking possession of the purchased property. Purchase Plus Improvements Program is a type of mortgage that covers the costs of a new home along with the renovations that are carried after the purchase. Following are some precise specifics regarding renovation finance.




LTV Limits for 1 & 2 Units


LTV Limits for 3 & 4 Units


Amortization for LTV > 80%

Up to 25 years

Amortization for LTV < 80%

Up to 40 years

GDS with Credit Score < 680


GDS with Credit Score > 680


TDS with Credit Score < 680


TDS with Credit Score > 680



Borrower Qualification

  • Standard requirements apply to down payment, income and credit worthiness
  • Down payments might be gifted from immediate family members
  • Government grants may be considered

Premium Rates

A specified percentage of the total loan amount will be paid as the premium based on the LTV ratio.


LTV Ratio

Premium Rate

Up to 65%


65.01% – 75%


75.01% – 80%


80.01% – 85%


85.01% – 90%


90.01% – 95%



Process of Renovation Refinance

The overall process starts with the general estimations. Subsequently, you will be required to get your appraisal for the value of property before and after the renovation. The renovation costs will however be included in your mortgage. Once the upgrade process is complete, you can then claim your lender to reimburse the funds against these upgrades.