Looking for a Home Renovation Loan in Ontario?

360Lending is an award-winning mortgage brokerage based in Richmond Hill, Ontario. Over 2,000 homeowners in Ontario have given us 5-star reviews and we have an A+ rating from the Better Business Bureau.

We help homeowners get the lowest rates for home equity loans, home equity lines of credit, refinancing, and other mortgage products.

To explore your renovation financing options, click here to schedule a call with our team.

Thinking about fixing up your kitchen? Need to repair your roof? Or maybe you're finally ready to build that basement apartment you've been dreaming of. Home renovations can make your house more comfortable, more valuable, and sometimes even help bring in extra income.

But let’s face it—renovations aren’t cheap. Most homeowners don’t have tens of thousands of dollars sitting in their bank account. So how do you borrow money to pay for home renovations in Canada?

Reasons to Borrow Money for Home Renovations

There are lots of reasons why Canadians borrow money to renovate their homes:

The roof is leaking and needs urgent repair

They want to update an old kitchen or bathroom

The basement is unfinished and could be turned into a rental unit

They’re getting the house ready to sell for more

Their family is growing and they need more space

Whether it’s a small project or a major overhaul, you have a few different options to get the money you need.

Use a Home Equity Loan or HELOC for Renovations

If you already own a home and have built up some equity, this is one of the best ways to borrow.

What is equity?

Equity is the difference between how much your home is worth and how much you still owe on your mortgage. If your house is worth $600,000 and you owe $400,000, your equity is $200,000.

Home Equity Loan (Second Mortgage)

You borrow a lump sum and pay it back with monthly payments.

Great for one-time renovation projects with a clear budget.

Interest rates are usually lower than credit cards or personal loans.

HELOC (Home Equity Line of Credit)

Works like a credit card—you borrow as you go and only pay interest on what you use.

Perfect for long or ongoing projects where costs may change.

You can reuse the credit as you pay it down.

Note: Most banks only offer a HELOC if your first mortgage is with them. If it’s not, you may need to go through a mortgage broker to find a lender.

Refinance Your Mortgage for Home Renovations

Another option is to refinance your mortgage—which means replacing your current mortgage with a new one that has a higher amount.

You apply for a new mortgage based on your home’s current value.

The new mortgage pays off your old one.

You get the leftover cash to use for your renovations.

Pros:

You could get a lower interest rate if market rates have dropped.

It’s one of the cheapest ways to borrow large amounts.

Cons:

You may have to pay a penalty if you break your mortgage early.

You’ll need to re-qualify based on your income, credit, and debts.

Retailer Financing for Renovations (i.e. Home Depot)

Some large home improvement stores like Home Depot, Lowe’s, and RONA offer their own financing programs to help you pay for renovation materials, appliances, and even installation services.

How it works:

You apply for a store credit card or project loan through a partnered lender.

Many offer 0% interest for a limited time (usually 6 to 24 months).

After the promo period, regular interest rates apply—often 19% or higher.

Pros:

Easy to apply at checkout or online.

Good for buying specific materials or appliances.

No upfront cash required if you qualify.

Cons:

Interest rates can be high if not paid off within the promo window.

Approval depends on your credit score and income.

Only covers purchases made at that store.

Retailer financing can work well for smaller, well-defined projects like a kitchen upgrade or bathroom remodel. But for bigger jobs involving contractors, permits, and multiple suppliers, a HELOC or home equity loan usually makes more sense.

Use a Credit Card for Small Renovation Projects

If your renovation is something simple—like painting, buying appliances, or small repairs—you might be able to cover it with a credit card.

But be careful:

Interest rates are usually 20% or higher

It’s not a good idea to carry a balance long-term

It can hurt your credit score if you go over 50% of your limit

This is only a short-term solution for minor expenses.

Canadian Government Programs for Renovations

Depending on your location and the type of renovation, you might qualify for government loans, grants, or rebates.

Ontario Home Renovation Savings Program: Launched in January 2025, offers rebates for energy-efficient home renovations, like insulation, windows, doors, heat pumps, and solar panels.

Canada Greener Homes Loan: Up to $40,000 interest-free for energy-efficient upgrades

Home accessibility grants for seniors or people with disabilities

Municipal rebate programs for things like replacing old windows or improving insulation

Talk to an Experienced Mortgage Broker

Before you borrow, check if you qualify for any of these—it could save you a lot of money.

Figuring out how to borrow for a renovation can feel overwhelming—especially if you’re dealing with credit issues, self-employment, or limited income. That’s where a mortgage broker comes in.

A broker can:

Help you understand your equity and borrowing power

Shop multiple lenders to get you the best deal

Explain all your options in plain language

Help you qualify, even if the bank says no

How to Borrow Money for Home Renovations

Borrowing money for home renovations is common in Canada—and there are several ways to do it depending on your financial situation, credit, and goals. Whether it’s upgrading your kitchen, adding a basement apartment, or just fixing what’s broken, it’s important to choose the right financing solution for you.

If you’re ready to start your renovation journey, reach out to one of our friendly advisors for a free, no-pressure consultation. We’ll help you figure out what you can qualify for and how much you can borrow—so you can build the home you really want.