Ontario homeowners have several financing options for renovation projects. Here is a complete 2026 overview.
HELOC (Home Equity Line of Credit)
Most popular renovation financing for equity-holding Ontario homeowners. Rate: prime + 0.5-1.5% variable. Interest-only payments available. Draw as needed — ideal for phased projects. Requires 20%+ equity remaining after borrowing. Available through banks and credit unions.
Home Equity Loan
Fixed amount, fixed rate, predictable payments. Good for defined single-project budgets. Slightly higher rate than HELOC. Less flexible for phased work.
Mortgage Refinance and CMHC Purchase + Improvement
Blend renovation into mortgage at lowest available rate. CMHC Purchase + Improvement: add renovation costs to purchase mortgage when buying a home needing work — appraised on improved value. Requires detailed renovation plans at purchase.
Canada Greener Homes Loan
Up to $40,000 at 0% interest for eligible energy efficiency upgrades (insulation, windows, heat pumps, HRV). EnerGuide evaluation required before and after. Check current program status — subject to federal budget cycles.
Tax Credits
Ontario Seniors Home Safety Tax Credit: 25% of eligible accessibility costs up to $10,000 ($2,500 maximum credit) for seniors or households with senior family members. Capital improvements increase adjusted cost base — keep all receipts for sale.
Find renovation financing resources and Ontario contractors at home.renovation.reviews.