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Can I Include the Cost of Home Renovations in My Mortgage in Quebec?

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In Quebec, as in other parts of Canada, it is possible to include the cost of home renovations in your mortgage under certain conditions. This option can be beneficial for homeowners looking to finance renovation projects without having to take out additional loans or use high-interest credit options. In this article, we explore the process, requirements, and considerations related to including renovation costs in your mortgage.

Can I Include the Cost of Home Renovations in My Mortgage in Quebec?

Yes, you can include the cost of home renovations in your mortgage in Quebec. This option allows you to finance renovation costs by increasing your mortgage loan amount. You can use funds from the increased mortgage to cover expenses related to improving your property, such as adding bathrooms, expanding living space, or upgrading units.

Financial institutions offer various financing options for including renovation costs in your mortgage, including lines of credit, personal loans, or incorporating the renovation expenses into the purchase price of the residence. By financing renovations through your mortgage, you can potentially increase the value of your property and achieve a return on investment. It’s important to consider your mortgage balance, and additional funds needed for improvement projects, and ensure that the property is your principal residence.

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Mortgage and Loan Options for Renovations

When it comes to financing renovation projects, several options can help you achieve your goals. From personal loans to mortgage refinancing, exploring the right solution is crucial. Personal loans offer flexibility, while personal lines of credit provide ongoing access to funds. Mortgage refinancing can consolidate renovation costs into your mortgage, simplifying payments.


Refinancing your current mortgage can be a strategic move to include renovation costs. By renegotiating your mortgage terms, you may be able to secure a lower interest rate or extend your repayment period. This can free up funds to cover your renovation expenses.

Additionally, refinancing allows you to consolidate your existing mortgage and renovation costs into a single loan, simplifying your financial obligations. However, it’s crucial to consider the associated fees and potential impact on your credit score. Conduct thorough research and consult with a financial advisor to determine if refinancing is the right choice for you.

Home Equity Loan

A home equity loan is an attractive option for homeowners looking to finance renovations. This type of loan allows you to borrow against the equity in your home, which is the difference between your home’s market value and the outstanding balance on your mortgage.

Home equity loans typically offer lower interest rates than other types of loans, making them a cost-effective financing solution. However, it’s important to assess your ability to repay the loan, as failure to do so could result in the loss of your home. Consider consulting with a financial advisor to explore this option further.

Construction Loan

For homeowners planning major renovations or new constructions, a construction loan can provide the necessary funds. Unlike traditional mortgages, which provide a lump sum payment, construction loans release funds in stages as the renovation progresses. This allows you to pay contractors and purchase materials as needed, minimizing interest costs.

However, construction loans often have higher interest rates and stricter qualification requirements than standard mortgages. It’s essential to have a detailed renovation plan and budget in place before applying for a construction loan. Consider consulting with a mortgage broker to explore this option further.

Government Assistance

Various government programs and tax credits are available to help homeowners finance renovations. These programs aim to promote energy efficiency, accessibility, and sustainable living. For example, the federal government offers the Home Accessibility Tax Credit (HATC), which provides tax relief for expenses related to home accessibility renovations.

Additionally, the provincial government may offer rebates or incentives for energy-efficient renovations. To take advantage of these programs, homeowners must meet specific criteria and submit the necessary documentation. Consider consulting with a tax advisor, or mortgage professional, or visiting government websites for more information on available assistance programs.

Eligibility Requirements for Home Renovation Loans and Mortgages


To include renovation costs in your mortgage, lenders typically require you to have a minimum amount of equity in your property. Equity is the difference between the current market value of your home and the outstanding balance on your mortgage.

Lenders view equity as a measure of financial stability and may require a minimum percentage, such as 20%, to qualify for renovation financing. Homeowners can build equity over time through mortgage payments or home value appreciation. It’s important to have a clear understanding of your home’s equity position before applying for a renovation loan.

Credit History

A solid credit history is crucial when applying for a mortgage that includes renovation costs. Lenders use your credit history to assess your creditworthiness and determine the risk of lending you money. A good credit score demonstrates responsible financial behavior and increases your chances of qualifying for a loan with favorable terms, such as a lower interest rate.

Factors that can impact your credit history include payment history, outstanding debt, length of credit history, new credit accounts, and types of credit used. It’s important to review your credit report regularly and address any issues that may negatively affect your credit score.


Lenders will also consider your income and the money in your bank when evaluating your eligibility for a mortgage that includes renovation costs. Your income helps lenders determine if you can afford the increased mortgage payments that will result from including renovation expenses. Lenders typically look for stable income sources, such as employment or business income, and may require proof of income, such as pay stubs or tax returns.

It’s important to accurately report your income and provide supporting documentation to lenders to demonstrate your ability to repay the loan. Consider consulting with a financial advisor to assess your income and determine the affordability of including renovation costs in your mortgage.

What documents do I need to apply for a mortgage in Quebec

Application Process

  • Budget and Plan: Homeowners must provide a detailed budget and renovation plan to the lender. This helps the lender assess the feasibility of the project and determine the loan amount.
  • Approval: The lender will review the application, including the budget and renovation plan, to determine if the homeowner meets the eligibility criteria.
  • Mortgage Amendment: If approved, the mortgage will be amended to include the renovation costs. This will increase the total mortgage amount and result in higher monthly payments.

Considerations When Renovating Your Home

  • Interest Rates: Including renovation costs in a mortgage may lead to a higher interest rate compared to a standard mortgage. Homeowners should carefully consider the long-term cost implications.
  • Loan Term: Extending the term of the mortgage to cover renovation costs can result in higher overall interest payments. Homeowners should assess their ability to manage the increased debt load.
  • Budgeting: It’s crucial to create a detailed budget and stick to it to avoid financial strain. Homeowners should account for unexpected expenses and plan accordingly.
  • Tax Implications: Renovation costs included in a mortgage may not be tax-deductible, so it’s important to understand the tax implications. Homeowners should consult with a tax advisor to determine the impact on their tax return.

Consult with Mortgage Experts to Explore Additional Mortgage Options

At Refinancement Hypothécaire, our expertise lies in providing tailored mortgage solutions to meet your needs. We specialize in refinancing mortgages, alternative loans, and debt reconstruction offering expert advice and personalized service to help you achieve your financial goals. Our team of professionals understands the complexities of the mortgage market and can guide you through the process with ease.

Whether you’re looking to lower your monthly payments, consolidate debt, or finance home renovations, we have the knowledge and resources to help. With access to a wide range of financial institutions and competitive rates, we strive to find the best mortgage solution for you. Trust Refinancement Hypothécaire for all your mortgage needs.

Contact us today for personalized mortgage advice