Construction & Renovation Mortgage Approvals
Fund Your Dream Home: Secure financing for custom builds or major renovations.
Flexible Payment Options: Choose from progressive draw mortgages or lump-sum payouts.
Expert Guidance: Navigate the Appraisals, Funding & Progress Completion with our team.
Save on Costs: Get competitive rates from multiple lenders specialized in renovation projects.
Discover the best mortgage rates and lowest mortgage rates in Canada at RateShop. Compare Canada mortgage lending rates from top lenders to secure your ideal home loan deal today.
Construction Renovation Mortgages: Turn Your Fixer-Upper into a Dream Home
One Loan, Endless Possibilities – Finance Your Home Purchase and Renovations with Ease!
Dreaming of a home that’s perfectly tailored to your style? A construction renovation mortgage could be your ticket to turning a fixer-upper into your dream space. Whether you’re planning a kitchen remodel, adding a second story, or just updating the basics, this guide will walk you through everything you need to know—from how it works to how to get the best deal in Canada. Let’s build your dream home together!
What Is a Construction Renovation Mortgage?
Your Ticket to a Dream Home
A construction renovation mortgage is a loan that combines the cost of buying a home with the funds needed to renovate it. Here’s why it’s a game-changer:
One Loan, Two Purposes: Buy your home and fund renovations in a single step.
Lower Interest Rates: Save thousands compared to personal loans or credit cards.
Customize Your Space: Create a home that’s uniquely yours.
Real-Life Example: “Emily bought a fixer-upper and used a renovation mortgage to transform it into her dream home. Now, she’s living in a space that’s both beautiful and functional.”
Types of Construction Renovation Mortgages:
Find Your Perfect Fit
Not all renovation loans are the same. Here’s a quick breakdown:
HomeStyle Renovation Loans: Ideal for luxury upgrades and larger projects.
FHA 203(k) Loans: Perfect for first-time buyers or those with smaller budgets.
Construction-to-Permanent Loans: Best for major overhauls or custom builds.
Quick Tip: Use a home mortgage rate calculator to compare your options and find the best fit
5 Year - Fixed Term from
3.94%
Apply for your Best Rate in minutes.
Everyone's rate is unique.What's yours?
It is our job to get your lowest possible rate. Your rate qualification depends on certain factors, such as credit score and home equity as per regulations.
*Advertised rates may not be offered by this lender. Mortgage lender offers are aggregated by RateShop & its Brokerage Network subject to change without notice. Speak with our mortgage broker about APR and qualification requirements.
The Secret to Getting Approved for a Renovation Mortgage
Qualifying for a renovation mortgage isn’t as hard as you might think. Here’s how to boost your chances:
Check Your Credit Score: Aim for 650 or higher.
Calculate Your Home Equity: Most lenders require at least 20% equity.
Work with a Trusted Contractor: Lenders want to see a solid plan and a reliable pro.
Pro Tip: A mortgage broker can help you navigate the approval process and find the best rates.
Why Choose a Construction Renovation Mortgage?
The Benefits You Can’t Ignore
Why juggle multiple loans when you can do it all with one? Here’s why renovation mortgages stand out:
Lower Interest Rates: Save money compared to high-interest credit cards or personal loans.
Increased Home Value: Strategic renovations can boost your home’s market value.
Simplified Payments: One loan means one easy payment.
How to Budget for Your Dream Renovation Without Breaking the Bank
Renovations can get expensive, but with the right plan, you can stay on track:
Get Multiple Quotes: Compare prices from at least 3 contractors.
Set Aside a Contingency Fund: Save 10-20% for unexpected costs.
Use a Renovation Mortgage Calculator: Estimate your total costs and payments.
The Renovation Mortgage Process: Your Step-by-Step Guide
Ready to get started? Follow these steps:
Get Pre-Approved: Know how much you can borrow.
Submit Your Renovation Plans: Include detailed cost estimates and timelines.
Choose a Contractor: Work with a pro approved by your lender.
Close the Loan: Finalize the details and start your renovations.
Enjoy Your Dream Home: Move in and love where you live.
The Risks You Need to Know: Is a Renovation Mortgage Right for You?
While renovation mortgages offer amazing benefits, they come with risks:
Budget Overruns: Unexpected costs can derail your plans.
Construction Delays: Bad weather or contractor issues can push back your timeline.
Risk to Your Home: Your home is used as collateral—if you default, you could lose it.
Protect Yourself: Plan carefully, choose a reliable contractor, and set aside extra funds for surprises.
How RateShop Brokers Can Help You Secure the Best Construction Renovation Mortgage Rates
Don’t settle for the first offer—here’s how to save big:
Shop Around: Compare rates from multiple lenders.
Negotiate: Ask for discounts or better terms.
Work with a Broker: They can find the best mortgage rates in Canada for your needs.
Pro Tip: Check the posted rate in Canada and use it as a benchmark when negotiating.
Turn Your Dream Home Renovation into Reality with a Construction Mortgage!
A construction renovation mortgage is a powerful solution for homeowners and buyers looking to transform their living space or build their dream home. The right mortgage allows you to finance both the purchase and renovation costs, making home improvements more achievable than ever. Whether you're considering a purchase plus improvement mortgage or a renovation-only loan, RateShop brokers are here to help you secure the best rates and mortgage options tailored to your needs.
Ready to bring your renovation vision to life? Contact a RateShop broker today to explore construction renovation mortgages in Canada and take the first step toward your dream home!
FAQs About Construction Renovation Mortgages
Can I use a renovation mortgage for DIY projects?
Most lenders require a licensed contractor, but some allow DIY work for smaller projects.
How long does the renovation process take?
It depends on the scope of the project, but most renovations take 3-6 months.
What happens if the renovations cost more than expected?
You’ll need to cover the extra costs out of pocket or apply for additional financing.
Can I refinance my mortgage to include renovations?
Yes! Refinancing is a great way to fund renovations if you already own your home.
As Seen And heard on
Quick Links
Calculators
Contact Information
6 Indell Lane, Brampton ON L6T 3Y3, Canada
Local: 416-827-2626
Toll: 800-725-9946
RateShop Inc. is a Mortgage Brokerage offering lowest mortgage rates to Canadians. We are provincially licensed in the following provinces: Mortgage Brokerage Ontario FSRA #12733, British Columbia BCFSA #MB600776, Alberta RECA #00523056P, Saskatchewan FCAA #00511126, PEI #160622, New Brunswick FCNB #88426, Newfoundland/Labrador. Our Quebec Mortgage Transactions are serviced by Orbis Mortgage Group AMF# 181136.
Copyright 2025. RateShop Canada. All Rights Reserved.