How do I finance my renovations | The Journal of Montreal

Are you thinking about a renovation so that you can enjoy your living comfort for a long time to come? Or do you want to sell your house?

Currently, renovated homes are not plentiful on the market; By completing work, you increase your chances of finding a buyer faster while getting a better price.

Whatever the reasons for wanting to remodel your home, you are wondering how to finance the work. Depending on your situation, you have several options.

Renovations and you

Except in emergencies where you need to intervene quickly, you should take the time to define your project.

Why do you want to renovate? To give your home a youthful look? To improve energy efficiency? Also, determine your debt tolerance. Some are allergic to it. With this information, you can create a budget that takes into account your borrower type as well as your ability to repay.

small is beautiful

Many home improvement consultants recommend not doing everything at once.

Thus, the works are carried out according to planned stages, which can be modified over time, while you finance the financing yourself with your personal savings.

Some seek financial assistance from loved ones or use their home equity line of credit. Borrowing from a financial institution is then not necessary. Simple, step-by-step, planned approach that many feel much more comfortable with. Not to be neglected.

Refinance your mortgage loan

If your budget has enough room for borrowing, major renovations are possible.

This option will appeal to those who do not want to split the renovation work. Additionally, many are taking the opportunity to consolidate all of their debt, especially credit card balances. They add these balances to the amount needed for the renovation and refinance everything at a lower rate than credit cards, using the value the home has acquired over the years. Kill two birds with one stone, why not?

Financing by taking out a new mortgage

If you want to buy a home, renovate it, and move in, you can apply for a larger mortgage loan to have cash to do the work.

The advantage of this is that the renovation costs are reduced because you benefit from the favorable rate of a mortgage loan.

net worth and mortgage

Your home has increased in value over the years. A sometimes significant capital gain that you can take advantage of by refinancing your mortgage loan. If you’re thinking of major renovations, you’ll like this option, especially if you don’t want to stagger the work.

Many use refinancing to consolidate all of their debt, especially credit card balances. You add these balances to the amount needed for the renovation and refinance it all at a lower interest rate than credit cards. Kill two birds with one stone, why not?

Mortgage financing will also interest those looking to buy, renovate and move into a new home. By applying for a higher mortgage loan, they have the necessary cash to complete their project while still benefiting from the low interest rate of a mortgage loan.

Personal Line of Credit

Obtaining a personal line of credit has the benefit of not having to give your home as collateral. You only pay interest on the used part of the margin, which is significantly more advantageous than a personal loan. Another advantage is that the funds are available quickly without having to make a request to the banker.

In summary, you can finance your renovation in a number of ways. Choose the one that suits you and act.


  • Consult with your financial institution’s financial advisor to determine your borrowing ability.
  • Set up an emergency fund. You don’t use up all your money.
  • Don’t use your RRSPs for home renovations, as the amount withdrawn becomes taxable.
  • Check with the relevant government agencies about the possibility of benefiting from renovation grants or tax credits.

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