Renovation Mortgage in Montreal
You are in the right place! In a single request, Mathieu Lebrun’s Team negotiates for you the best possible rate for your renovation mortgage in Montreal, with more than 30 financial institutions.
Get the best rate for your renovations
Call one of our mortgage brokers now
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
Financing your renovations
Why renovate?
There are several reasons why homeowners may want to renovate. Some simply need a change while others must renovate for safety reasons and to protect their investment (e.g., a leaky roof or a flooded basement).
In general, renovation projects are divided into three categories: lifestyle, thermal efficiency improvement, and maintenance or repair. A successful renovation project may be a dream come true, but without proper preparation and supervision this dream can soon turn into a nightmare.
Try as much as you can to limit hard costs when doing the renovation. Instead of having to lay a new solid hardwood, you can borrow a floor sander and sand your floors in order to reduce the amount of money you will be spending on the renovation. Instead of replacing items in the home, it is better to refurbish them.
When you are doing the renovation, be sure to start with the kitchen and the bathrooms. These are the areas that most people will look at when they want to buy a new house. A simple coat of paint will go a long way in making your home look attractive.
Before picking up your tools, make sure to get all the information you need. Ask your contractor’s previous clients for recommendations and check if any complaint has been filed against him/her to make sure you are in good hands. Call your local authorities to know what by-laws you are subject to and ask for the necessary permits for your renovation. Ask friends and neighbors who have done some renovations for advice. Use all the sources of information available and remember the good carpenter’s motto: measure twice, cut once. Mistakes made on paper are neither costly nor hard to correct whereas those made on the jobsite are.
Learn if a renovation is necessary
Are renovations necessary, do you have other options?
While it is important to maintain your home and protect your investment, lifestyle renovations — and even some thermal-efficiency renovations — can sometimes be postponed or downsized, such as keeping the kitchen cabinets and updating only the doors, or using an insulating film instead of changing the windows. This can help reduce the amount you may need through renovation financing or mortgage financing.
Are your expectations realistic?
Learn to make the difference between what you want and what is necessary. Almost any renovation project will increase — or at least preserve — the value of your house and your mortgage investment.
However, some renovations will give you more bang for your buck than others when it comes time to sell your house: kitchen and bathroom renovations, as well as freshening up the paint, will give you the best return on investment. Choosing the best mortgage or mortgage refinancing option for your renovation can also help you manage the cost of the project.
However, some renovations will give you more bang for your buck than others when it comes time to sell your house: kitchen and bathroom renovations, as well as freshening up the paint will give you the best return on investment.
Buying a fixer-upper? Add renovation costs to your mortgage
If you are buying a home that needs work, you may be able to include certain renovation costs directly in your mortgage financing. This can be useful when the property needs updates before you move in, such as kitchen renovations, bathroom renovations, basement work, roof repairs, or energy-efficiency improvements.
In most cases, lenders will want to review the renovation project, estimated costs, and contractor quotes before approving the financing. This helps determine the future value of the property once the work is completed.
How renovation mortgage funds are released
Renovation mortgage funds are not always released in the same way as a regular mortgage amount. Depending on the lender and the type of renovation financing, part of the money may be held until the work is completed or verified.
You may need to provide contractor quotes, invoices, proof of completed work, or an inspection/appraisal before the funds are released. A mortgage broker can help you understand what each lender requires before you start the renovation.
How much can you borrow for renovations?
The amount you can borrow for renovations depends on your property value, available equity, current mortgage balance, income, credit profile, and the lender’s requirements.
For current homeowners, mortgage refinancing may allow you to access part of the equity in your home. For buyers, renovation costs may sometimes be included in the mortgage when purchasing a property that needs work. Mathieu Lebrun’s Team can help you compare renovation mortgage options and find a solution adapted to your project.
Renovation financing options
There are several ways to finance your renovations, depending on the size of the project, your budget, and the equity available in your home.
Mortgage refinancing
Mortgage refinancing may make sense for larger renovation projects if you want to access your home equity and spread the cost over a longer period. This can be useful for major work such as a kitchen renovation, bathroom renovation, basement renovation, roof repair, or energy-efficiency improvements.
Home equity line of credit
A home equity line of credit may be useful when the renovation budget is less fixed or the work will be done in several stages. It gives more flexibility, since you can use funds as needed, but the rate and repayment structure may be different from a mortgage refinance.
Personal loan or personal line of credit
A personal loan or personal line of credit may make sense for smaller renovation projects where you do not want to refinance your mortgage. These options can be faster to arrange, but they may come with higher rates than mortgage-based financing.
Savings or credit card
For very small projects, some may use savings or a credit card. However, this is usually better suited to minor updates, not larger renovations.
Refinance your mortgage to pay for renovations
For larger renovation projects, refinancing your mortgage may help you access the equity in your home and spread the cost over a longer period.
In some cases, this can offer a lower rate than unsecured borrowing options, such as a personal loan or credit card. However, mortgage refinancing may involve setup costs, including legal, notary, appraisal, or administrative fees.
Mathieu Lebrun’s Team can help you compare your renovation mortgage options and negotiate with more than 30 financial institutions.
Mathieu Lebrun’s Team
3 simple steps to receive the best offer from your mortgage broker
or
Financial institution partners
They trust us
