Construction and
Renovation Financing

Your home is your most important asset, meaning any additions or renovations made to your house are an excellent investment. But before you start, you should think about the financing options for your remodelling or building project. A complete renovation through a contractor may saddle you with additional debt.

Renovations on a line of credit may also become a slippery slope – once you’ve renovated one room, it’s tempting to consider updating other rooms accordingly. If you know going into the homeownership journey that you’ll be making renovations, repairs or additions to your new property, renovation and construction financing options are available to simplify the renovation process and save you money on the project.

Introducing our purchase-plus improvements program

Our Purchase-Plus Improvements Program (PPIP) covers the sale price of your home, as well as the renovations you’d like to add to enhance the value of the property. PPIPs have historically low interest rates attached to the mortgage, helping homebuyers save significant amounts of money on their home renovations. After getting quotes from a contractor, the Canadian Mortgage and Housing Corporation (CMHC) will review a loan of the ‘as improved’ value of the home.

Compared to a line of credit, which will be up to 80% of the property’s market value, a construction mortgage provides an alternative for homeowners who only have 5% of the down payment to buy the home they want, along with the improvements they need. We won’t just finance the perfect house for you and your family, we’ll help you make it a home. Contact us today to discuss our PPIP and the renovation financing options.

Renovation Financing

Most home buyers will instinctively turn to banks when they need any form of financing. While that may seem like the quick solution, you may find that there are other lower-cost options on the market. When it comes to construction mortgages and renovation financing, a trusted mortgage brokerage with experienced agents like Edgehill offers distinctive advantages.

Mortgage brokerages specialize in various types of mortgages

While banks offer various loan types including commercial financing, they don’t fully specialize in them like a dedicated mortgage brokerage. A mortgage broker will take the time to understand the needs of the homeowner, and outline the client’s situation and construction plan from the outset. Mortgage brokers are best at walking the line of risk versus opportunity when it comes to financing renovations.

A top mortgage brokerage can secure better, more flexible rates

Mortgage brokers can offer construction mortgages for the build phase, with the ability to secure takeout financing post-build for potentially better rates. This added flexibility during the renovation project saves money which can be re-invested into the home or another venture. Edgehill Mortgage Group can often secure exclusive Canadian mortgage rates that are lower than what’s available to the public, thanks to our reputable list of over 50 private and institutional lenders and credit unions.

Mortgage brokerages offer flexibility

Most banks ask borrowers to own the property in full before considering any renovation financing. A mortgage brokerage, on the other hand, can offer a PPIP, which includes the price to buy the home and the cost of renovations or construction, simplifying the mortgage process and payment plans. Mortgage brokerages can provide flexible draw schedules, too, which can be done at any time during the construction project. Since your mortgage agent will be more involved in the process, he or she can offer guidance on whether to expedite or delay the draw based on the unique needs of the project and home owner.

Ready to get to work on your next renovation project? Contact us today to discuss all our renovation financing options.