Spring cleaning is one thing. But spring renovating? That’s where the real opportunity is.
If you’ve owned your home for several years, you’ve likely built up significant equity. And with renovation costs still elevated across Canada, tapping that equity intelligently — rather than reaching for a high-interest line of credit or credit card — can make a meaningful difference in what your project costs you.
Here’s what you need to know about using your home equity to fund spring renovations.
Why Equity-Based Financing Makes Sense for Renovations
Home equity loans and HELOCs (Home Equity Lines of Credit) typically carry interest rates dramatically lower than personal loans, credit cards, or store financing plans. We’re often talking about the difference between 7–10% on a personal loan versus 5–6% on a secured home equity product.
On a $50,000 renovation, that difference in rate can save you thousands of dollars over the life of the financing.
Home equity is one of the most versatile financial tools available to Canadian homeowners, and renovations are just one use case. See also our guide on how to use your home equity to buy an investment property.
Your Options at a Glance
HELOC (Home Equity Line of Credit): You borrow what you need, when you need it, up to your approved limit. Interest is charged only on the outstanding balance. This is ideal for phased renovations where costs roll out over time — a kitchen this spring, a bathroom in the fall.
Refinance: If you have significant equity and want to lock in a fixed amount at a great rate, refinancing to pull equity out can make sense. Keep in mind there may be prepayment penalties if you’re breaking your current term early. This is worth analyzing carefully with your broker.
Second Mortgage: If your first mortgage can’t be touched (perhaps it has a great locked rate), a second mortgage lets you access equity without disturbing your existing terms. Rates are higher than a first mortgage, but still typically better than unsecured credit.
Blended Mortgage: Some lenders will blend your existing mortgage rate with new money at the current rate, allowing you to access equity mid-term without a full break penalty. We’ve written a full explainer on how blended mortgages work and when they make sense , it’s worth a read before you decide whether to break, blend, or borrow elsewhere.
What Renovations Add the Most Value?
Not all renovations are created equal from a resale standpoint. In the Canadian market, the highest-return projects typically include:
- Kitchen updates (not necessarily full gut renovations)
- Bathroom upgrades
- Exterior improvements and curb appeal
- Finished basements
- Energy efficiency upgrades (especially with available government grants)
Before you borrow, think about whether your renovation improves your day-to-day life, increases your home’s value, or both. Either is a valid reason — just know what you’re optimizing for.
A Word on Grants and Incentives
Before you reach for your equity, check the Canada Greener Homes Grant and provincial equivalents. For energy efficiency upgrades — insulation, windows, heat pumps — there may be grant money available that reduces how much you need to borrow. Your renovation dollars go further when the government is co-investing.
Plan Before You Borrow
The worst renovation financing decisions happen when people are mid-project and out of money. Work with your mortgage broker before you start, not after. We’ll help you determine how much equity you can access, which product is the best fit, and how to structure the financing so costs don’t spiral.
Thinking about a spring renovation? Let’s talk about your equity options. The Ingram Mortgage Team can help you fund your project without overpaying to do it.