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A Home Improvement Mortgage is designed to provide homeowners with the financial support they need to make significant upgrades, renovations, or repairs to their property. This program allows you to integrate the cost of renovations into a new mortgage or refinance your existing one, giving you the flexibility to create the home of your dreams. Whether you’re modernizing a dated kitchen, adding an energy-efficient upgrade, or expanding your living space, this mortgage can help you achieve your goals while managing costs effectively.
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To qualify for home improvement financing through a mortgage product in Alberta, most lenders will look at the following:
The amount you can borrow depends on your home's current value, your remaining mortgage balance, and which product you use. Here are some realistic Alberta scenarios:
Serving homeowners across the Calgary metro area.
Available to homeowners throughout the Edmonton metro area.
Ideal for first-time buyers looking at properties that need work in central Alberta.
Available across southern Alberta.
A home improvement mortgage is any mortgage product used to finance renovations, repairs, or upgrades to your home. In Alberta, the most common options are a refinance of your existing mortgage, a home equity line of credit (HELOC), a Purchase Plus Improvements mortgage at the time of buying, or a second mortgage registered behind your existing one.
Most A-lenders will let you borrow up to 80% of your home's appraised value through a refinance, minus your existing mortgage balance. For a standalone HELOC, the limit is 65% of the home's value. If you're buying a home that needs work, a Purchase Plus Improvements mortgage allows you to add up to 10% of the as-improved value (capped at $40,000) to your mortgage with as little as 5% down. Try the free mortgage calculator to model different scenarios.
Not exactly. A home improvement loan is usually an unsecured personal loan or a line of credit that isn't registered against your property, resulting in higher rates, shorter terms, smaller amounts. A home improvement mortgage is secured by your home, which means significantly lower interest rates and access to much larger amounts, but it requires enough equity in the property and is registered on title.
Yes. Alternative and private lenders in Alberta regularly fund renovation financing for borrowers with credit scores below 600, recent bankruptcies, or unconventional income. Rates are higher and terms are typically 1–2 years, with the expectation of refinancing to an A-lender once the work is complete and the home has been reappraised. A mortgage review can help determine which lender type fits your situation.
For a refinance or HELOC, quotes are helpful but not always required - the funds are advanced as cash you can use as you see fit. For a Purchase Plus Improvements mortgage or a draw-style construction mortgage, written contractor quotes are mandatory because the lender releases funds based on the scope of work.
A straightforward refinance or HELOC through an A-lender typically takes 10–15 business days from application to funding in Alberta, assuming the appraisal comes back on time. Purchase Plus Improvements mortgages close alongside the home purchase, so the timeline matches your closing date. Private and alternative lenders can often fund within 5–7 business days. Contact me today to get started.
Only if you refinance mid-term. Breaking a closed fixed-rate mortgage triggers a prepayment penalty, which can be significant - especially in the first few years of a 5-year term. A HELOC or second mortgage lets you access equity without touching your existing first mortgage, which often makes more sense if you're not close to renewal.
Yes. Investment properties qualify for refinances up to 80% LTV and HELOCs up to 65% LTV through most A-lenders, though qualification uses rental income add-backs and the debt service ratios are calculated differently than for owner-occupied homes.
Kitchen and bathroom updates, basement development, energy-efficiency upgrades (especially in older Calgary and Edmonton housing stock), and adding legal secondary suites consistently deliver the strongest return on investment in the Alberta market. Pools and high-end landscaping generally return the least.
Yes. The Canada Greener Homes Loan offers up to $40,000 interest-free for eligible energy-efficient upgrades, and it can be layered on top of a traditional refinance or HELOC. Your home improvement mortgage covers the broader renovation scope while the Greener Homes Loan handles qualifying components like heat pumps, insulation, windows, and solar.
In almost all cases, yes. Lenders need to confirm the current market value of your home before approving additional financing. For Purchase Plus Improvements, a second appraisal (or an as-improved value letter) is usually required to confirm the post-renovation value.
A refinance replaces your existing mortgage with a new, larger one at a fixed or variable rate and a set amortization - best if you want predictable payments and a lump sum. A HELOC is a revolving line of credit secured against your home, with interest-only minimum payments and the ability to draw and repay as needed - best for phased projects or when you don't need all the money at once.
Transform your house into the home you’ve always envisioned. Whether you're planning a small upgrade or a complete remodel, I'll help you secure the funding you need with ease and flexibility.
My mortgage guide explains how equity, rates, and amortization work - all relevant when financing renovations.
Contact me now to learn more about Home Improvement Mortgage options and take the first step toward a better home!
If you have more questions, or would like assistance with planning your mortgage, please reach out to me today!
