Refinance for large, one-time projects
Refinancing replaces your mortgage with a larger one up to 80 percent of the appraised value and pays out the difference. It usually carries the lowest rate of the options, with legal and appraisal costs and possibly a prepayment penalty if you break mid-term.
HELOC for staged or uncertain budgets
A home equity line of credit lets you draw only what you use and pay interest on the balance. Rates are variable and higher than a mortgage, but the flexibility fits kitchens, bathrooms, and projects where the final number moves.
Purchase plus improvements when you are buying
This program rolls renovation costs into the mortgage at the time of purchase, based on quotes and an as-improved value. Funds are released after the work is verified, so you need to cover the contractor in the interim.
- Get written quotes before you finalize the offer
- Work must be completed within the lender's timeline
- Best suited to a fixer-upper with clear scope
Draw financing for major structural work
Additions, laneway suites, and gut renovations often exceed what a refinance allows. Construction financing advances funds in stages against inspections, and it is the right tool once the project resembles a build rather than a refresh.
Frequently asked questions
- Will a renovation increase my home value by what I spend?
- Rarely dollar for dollar. Kitchens, bathrooms, and adding legal living space return the most; pools and high-end finishes return the least.
- Can I get renovation funds if I am self-employed?
- Yes. We use business financials, notices of assessment, or alternative documentation programs depending on how income is reported.
Talk to a Toronto private mortgage specialist
We arrange equity-based financing across Toronto and the GTA, whether you need a first position from a private lender or a second mortgage behind the bank you already have.