6 Ways to Finance Your Home Renovation in Ontario
A major renovation can cost $30,000–$150,000+, but you don't need all that cash upfront. Here are the most popular financing options for homeowners in Brantford, Kitchener, Hamilton, Cambridge, Guelph, Brampton, and Mississauga.
1. Home Equity Line of Credit (HELOC)
The most popular option. Borrow against your home's equity at low interest rates (typically prime + 0.5–1%). You only pay interest on what you use. Best for: homeowners with significant equity who want flexibility.
2. Renovation-Specific Loans
Some Canadian banks offer renovation loans with rates between 5–8%. These are unsecured personal loans specifically for home improvements. Amounts typically range from $10,000–$100,000.
3. Refinancing Your Mortgage
Roll renovation costs into your mortgage at today's rates. This gives you the lowest monthly payment but extends your mortgage. Best for: large renovations ($50K+) when your mortgage is up for renewal.
4. Contractor Payment Plans
Some contractors, including Build My Home Ltd, offer milestone-based payment schedules. Instead of paying everything upfront, you pay in stages as work is completed — typically 10-15% deposit, then payments at framing, rough-in, and completion.
5. Government Grants & Rebates
Ontario offers several programs: the Canada Greener Homes Grant (up to $5,000 for energy-efficient upgrades), Home Accessibility Tax Credit (for accessibility renovations), and municipal programs that vary by city.
6. Credit Cards (for small projects)
For smaller renovations under $10,000, a low-interest credit card or 0% promotional rate card can work. Pay it off within the promotional period to avoid high interest.
Which Option is Best?
For most homeowners, a HELOC is the best choice for renovations over $20,000 — low interest, flexible payments, and tax-deductible interest if the renovation generates rental income (like a basement suite). For smaller projects, a contractor payment plan keeps things simple.
Get Started with Build My Home Ltd
We offer flexible payment schedules on all renovation projects. No full upfront payment required. Call 204-205-2064 for a free estimate and we'll help you figure out the best way to finance your project.