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Renovation Mortgages Simplified!

Updated: Nov 4, 2021

“Renovation Mortgages” allow homeowners to renovate a newly-purchased, refinanced, or newly-constructed home by rolling the cost of the improvements into the balance of the mortgage. This allows the homebuyer to benefit from the low interest rate associated with a mortgage, and the simplicity of one monthly payment.


We can finance up to 95% of the ‘as improved’ value. CMHC will allow 10% of the purchase to a maximum of $40,000 under this program. There are options to incorporate a higher amount of renovation funds into the mortgage if needed; please contact me to discuss the options available to you today.


You find a home you love but needs some work.


You make an offer to subject financing.

You acquire 1-3 quotes from contractors to determine the cost of the renovations. CMHC approves a loan of up to 95% of the ‘as improved’ value of the home, provided that the money requested does in fact improve the value.


The funds for renovations are not released until the work is completed. You must be prepared to finance the renovations and improvements up front.


Keep all of your receipts and let us know when the work is complete. The mortgage lender will confirm the work is completed by way of paid receipts or an inspection by an appraiser. We will advise you what is required for your mortgage.





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