Most Toronto homeowners already have the asset they need to fund a renovation: their home equity. A home renovation mortgage lets you access that equity through a refinance, a HELOC, or a second mortgage. At Everything Mortgages, we identify which structure produces the lowest total cost for your situation. Buying a property that needs work? That is a different product. See our Purchase Plus Improvements mortgage for that option.
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The Challenge
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How We Choose a Structure
Services Offered
Why Choose Us
How to Get Started
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A home renovation mortgage covers several ways to access home equity for renovation work on a property you already own. The three most common structures are a mortgage refinance, a home equity line of credit, and a second mortgage.
Mortgage Refinance
Replaces your existing mortgage with a new one at a higher balance that includes the renovation funds. Works best when your mortgage is near renewal, when the prepayment penalty is manageable, or when current rates are close to your existing rate. The result is one consolidated payment covering both the original mortgage and the renovation cost.
Home Equity Line of Credit (HELOC)
Gives you a revolving credit line secured against your home’s equity, up to 80% of the appraised value minus your outstanding mortgage balance. You draw funds as needed, pay interest only on what you use, and repay and redraw as the renovation progresses. This is the most flexible structure for projects with phased timelines or uncertain total costs.
Second Mortgage
Places a new loan behind your existing first mortgage, accessing equity without touching the first mortgage’s rate or terms. The right structure when breaking the first mortgage would trigger a large prepayment penalty. Rates are higher than the first mortgage but significantly lower than unsecured renovation financing.
The Challenge
The main challenge is not finding funding; it is identifying which structure costs the least given your specific mortgage terms and equity position.
A refinance produces the lowest rate but may trigger a prepayment penalty on a fixed-rate mortgage mid-term. If that penalty is large relative to the renovation budget, a second mortgage or HELOC preserves the first mortgage’s rate and avoids the penalty entirely. The HELOC is the most flexible but requires strong credit and typically cannot exceed 65% of the home’s appraised value on a standalone basis. A second mortgage is accessible to borrowers with bruised credit where a HELOC would be declined.
Each structure has different rate ranges, fee implications, and qualification criteria. We model all three against your specific numbers before recommending any of them.
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What Renovations Can Be Financed
Any renovation on a property you already own qualifies. Kitchen and bathroom remodels, basement finishing, additions, roof replacement, HVAC upgrades, landscaping, and accessibility modifications all apply. Approval is based on your equity position, income, and credit profile, not the specific project type.
How We Choose a Structure
How Everything Mortgages Structures Home Renovation Financing
The first thing we assess is your existing mortgage terms. If you are within six months of renewal, a refinance is almost always the cleanest structure. If you have two or more years left on a fixed-rate term, the prepayment penalty calculation determines whether a refinance, HELOC, or second mortgage produces the better outcome.
For homeowners with strong credit and at least 20% equity, a HELOC through an A lender is often the most cost-effective structure. The rate is low, the access is flexible, and there is no lump sum interest cost on funds not yet drawn.
For homeowners with bruised credit or a mortgage that cannot be touched, a second mortgage accesses the equity without disrupting the first mortgage and without the credit requirements of a HELOC.
If you are buying a property that needs renovation and want to roll the costs into the purchase mortgage, see our Purchase Plus Improvements mortgage, which is a separate product from what is covered here.
We present all applicable structures side by side with the total cost of each before any application is submitted.
Services Offered
Structure Assessment
We review your existing mortgage terms, remaining term, prepayment penalty exposure, equity position, credit profile, and renovation budget to identify which structure produces the lowest total cost for your specific situation.
Lender Matching
We access more than 50 lenders across A, B, and private categories. For renovation financing, the right lender depends on your credit profile, the loan-to-value ratio, and whether the project requires staged draws or a lump sum.
Cost Modelling
Before any application is submitted, we model the total cost of the renovation financing including rate, term, fees, and any prepayment penalty on the existing mortgage so you can compare options on total cost rather than rate alone.
Application and Approval Management
We prepare the application, coordinate the property appraisal if required, and manage the approval process through to funding. For phased renovation projects requiring staged draws, we manage the draw schedule with the lender.
Why Choose Us
We Know Which Structure Fits Your Mortgage
The right home renovation financing structure depends entirely on your existing mortgage terms, equity position, and credit profile. Recommending a refinance to a borrower who is mid-term on a fixed-rate mortgage without calculating the prepayment penalty first is a mistake that costs clients thousands. We do that calculation before any recommendation is made.
Access to 50+ Lenders
A lender HELOCs, B lender second mortgages, and private renovation financing all serve different borrower profiles. We access more than 50 lenders across the full spectrum and match the renovation financing structure to the lender whose criteria best fit your file.
No Credit Pull on Initial Review
We do not pull your credit on the initial review unless you specifically request it. We assess your situation first, identify what is available to you, and submit a credit application only when an approval path is confirmed.
How to Get Started
Ready to take the first step toward securing a home renovation mortgage? Here’s how to get started:
1
Complete our online mortgage application with your basic financial details, an estimate of your home's current value, your existing mortgage balance, and your renovation budget. This gives us what we need to run an initial structure and equity assessment before our first conversation.
2
Once we review your application, we send you a specific document list. For most home renovation mortgage files this includes a recent mortgage statement, recent pay stubs or tax returns, and a government-issued ID. If an appraisal is required, we coordinate that directly with an accredited appraiser.
3
One of our mortgage brokers walks through your equity position, presents the refinance, HELOC, and second mortgage options side by side with full cost modelling, and recommends the structure that produces the best outcome for your renovation budget and mortgage terms. No obligation, no cost.
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Amy Asadullah
Toronto, Ontario
A++++.
I had the pleasure of working with Manzeel at Everything Mortgages. After dealing with 2 other brokers, Manzeel made this purchase happen for me and my family. He has been professional, approachable and sincere. I couldn’t be happier and highly recommend him.
Hovig Tchaderian
Toronto, Ontario
I was extremely pleased with the service I received!! The communication from start to finish could not have been any better.
I would recommend the whole team for anyone that’s looking for a mortgage!!
Thanks again!
Sarah Paul
Toronto, Ontario
My experience with Everything Mortgages was excellent. My mortgage broker was very knowledgeable, professional, and personable. Also, the process was smooth and uncomplicated. I would recommend Everything Mortgages for any type of buyer, new or seasoned, residential or commercial.
Varun Kalia
Canada, Toronto
Manzeel and his team at Everything Mortgages are fantastic! Buying a house can be quite an ordeal but these guys made it stress free and painless. Not only did they take the time to answer all the questions I had but they were also respectful and diligent in keeping me informed through out the closing process. They were mindful of my time and worked around my schedule. It was an excellent experience from end to end. I highly recommend them for anyone in need of a mortgage. Thanks Manzeel and team!
Rahee G
Canada, Toronto
My experience with Everything Mortgages was excellent. Manzeel and his team are best in class. They were very professional and really simplified the process for me. I would recommend Everything Mortgages for everyone!
Melissa Emond
Toronto, Ontario
I’ve personally dealt with Everything Mortgages for years now and they have done many transactions for me (purchases and refinances). They are competitive, tech savvy, and trustworthy. I highly recommend them for all your mortgages needs.
A home renovation mortgage uses your existing home equity to fund renovations on a property you already own. The three main structures are a mortgage refinance, a HELOC, and a second mortgage. Each has different rates, fees, and qualification criteria. We identify which structure fits your situation before any application is submitted.
Most lenders allow up to 80% of the home’s appraised value minus the outstanding mortgage balance. A home worth $900,000 with a $500,000 mortgage has up to $220,000 in accessible equity. HELOC products are capped at 65% of appraised value on a standalone basis. The actual amount depends on your income, credit profile, and lender type.
A home renovation mortgage finances renovations on a property you already own using existing equity. A Purchase Plus Improvements mortgage rolls renovation costs into the purchase mortgage at the time of buying the property. If you are already a homeowner wanting to renovate, the equity-based options on this page apply.
If your mortgage is near renewal or the prepayment penalty is minimal, a refinance produces the lowest blended rate. If you have years left on a fixed-rate term, a HELOC or second mortgage accesses equity without touching the first mortgage. We model the prepayment penalty against the rate saving before making any recommendation.
Yes. Homeowners with sufficient equity can access renovation financing through a B lender second mortgage or private lender even without qualifying for an A lender HELOC or refinance. The rate will be higher but is still typically lower than unsecured renovation financing.
A lender HELOC rates typically run at prime plus 0.5%. Refinance rates reflect current A lender mortgage rates. B lender second mortgage and private renovation financing rates are higher. We present the full cost of each available structure before any application goes forward.
HELOC products are variable by default. For refinance and second mortgage structures, fixed rates are more common and suit borrowers who want payment certainty while managing renovation costs. The right choice depends on your timeline, risk tolerance, and how long you plan to hold the financing.
Yes. Costs may include a property appraisal, legal fees, and a prepayment penalty if breaking a fixed-rate mortgage mid-term. B lender second mortgages typically carry a lender fee of around 1% of the loan amount. We provide a full cost breakdown before any application is submitted.
A consumer proposal doesn't have to keep you out of the housing market. We work with lenders across Toronto and the GTA who look past the R7 rating on your credit bureau, whether you're still making payments or already discharged. If the bank says no, we say yes.
A discharge doesn't have to mean years on the sidelines. We place GTA borrowers with the right lender at each stage of recovery, from private financing the week after discharge to bank-rate approvals once credit is rebuilt.
If the CRA has registered a lien on your home, or your property taxes have fallen behind, refinancing can pay the debt in full at closing. We connect GTA homeowners with lenders who look at the equity in your home first and the lien second.
Private mortgage lenders in Toronto approve applications that banks and B lenders decline. Approval is based primarily on property equity and loan-to-value ratio rather than credit score or income documentation. At Everything Mortgages, we connect borrowers with private mortgage lenders across Toronto and Ontario, structure the application to present the file in the strongest light, and manage the process through to funding.
A second mortgage in Toronto lets you access your home equity without breaking your existing first mortgage or triggering a prepayment penalty. It sits behind your first mortgage on title and advances funds as a lump sum at closing. At Everything Mortgages, we place second mortgages for Toronto and GTA homeowners with strong credit and those with bruised credit, accessing B lenders, private lenders, and MICs to find the right fit for each file.