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How do I refinance my home for renovations if I don’t have a lot of equity?

It seems like renovations are on everyone’s minds these days, fueled by an endless selection of home-improvement and flipping shows on television. I have to admit, watching home makeovers gives me the sudden urge to run to the nearest Home Depot. Most Canadians don’t have a ton of cash lying around, so refinancing your home to take out some equity is a great solution, especially given the rock-bottom interest rates that we see today.

The new mortgage rules limit homeowners to refinancing up to only 80% of the value of their home. However, a problem arises when there isn’t a ton of equity to take out. Most of the time, the 80% calculation is based on the value of your home the way it is now, before the renovations.  Thankfully, there is a program called a Refinance Plus Improvements Mortgage that will allow a homeowner to refinance up to 80% of the value of the home, after the renovations.  This means an additional 10% of the home’s value, up to $40,000, can be added to the mortgage!


Want to know more about this program?  Give us a call at 647-684-8888.  We are the best mortgage brokers in Mississauga at helping you with your mortgages!



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