Using Your Home Equity to Stay Just a Little Bit Longer

Diane Buchanan • September 18, 2017

Last month, the article “Can’t find the Perfect Property in Your Price Range” was published on the blog, where the purchase plus improvements program was outlined as a way to buy and renovate a property at the same time. If you are looking to buy a new home, but can’t find something you love, this article is certainly worth a read! But what if you don’t want to move? What if you like the place you’re in, but it could use a few upgrades? Well, here are some ways you might be able to stay, just a little bit longer!

Introducing the mortgage refinance, and the refinance plus improvements. Both products allow you to leverage your home equity for home improvements.

Refinance

If your mortgage balance is less than 80% of your property’s value, then assuming you qualify (given the latest changes to mortgage qualification), you can access the equity built up in your home to that 80% level. Lenders will typically ask what the funds are going to be used for, however you won’t have to prove anything after the fact. You should be able to access up to $200,000. Assuming you have the equity, a refinance is a really great way to access funds for various reasons, here are just a few:

Renovate your house
Consolidate your high-interest debts
Help your children pay for education
Top up your investments
Access money for a downpayment on a vacation property
Start a new business (just don’t quit your day job)
… Or any combination of the above

But what happens if you want to do some renovations to your property, but your mortgage balance is more than 80% of your home’s value? That’s where the refinance-plus-improvements comes in.

Refinance-Plus-Improvements

Although guidelines will vary from lender to lender, the refinance-plus-improvements will allow you to access up to 80% of your property’s existing value, plus the cost of the renovations. Most lenders will consider 10% of the initial value of the home, or $40,000, whichever is less, to be included for renovations. So when you take the existing value of your home and add the suggested cost of the renovations, this becomes the improved value. The mortgage is then based on the improved value, instead of your existing value.

However, the catch here is that the renovations have to increase the value of your home accordingly. And the lender wants to ensure that the renovations have been completed, and the value of the property has been increased before they will actually let you have access to the money. So, although the cost of the renovations can be added to the mortgage, it’s your responsibility to pay for the renovations up front, and once the improved value is substantiated by an appraisal, then the funds will be released from the lawyer’s trust account.

Securing a purchase-plus-improvements is certainly a little more tricky than executing on a refinance, but if you don’t have enough equity saved up, this might just be the product that allows you to access your home equity in order to increase the value of your home, and give you a nicer home to live in. Win win.

If you have any questions about either a refinance or a refinance plus improvements, and what each of these would look like given your financial situation, please don’t hesitate to contact me anytime , I’d love to work with you!

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DIANE BUCHANAN
Mortgage Broker

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Buying a Vacation Property or Rental? Here’s What Lenders Look For

By Diane Buchanan • May 27, 2026

Owning a vacation home or an investment rental property is a dream for many Canadians. Whether it’s a cottage on the lake for family getaways or a rental unit to generate extra income, real estate can be both a lifestyle choice and a smart financial move. But before you dive in, it’s important to know what lenders look for when financing these types of properties. 1. Down Payment Requirements The biggest difference between buying a primary residence and a vacation or rental property is the down payment. Vacation property (owner-occupied, seasonal, or secondary home): Typically requires at least 5–10% down, depending on the lender and whether the property is winterized and accessible year-round. Rental property: Usually requires a minimum of 20% down. This is because rental income can fluctuate, and lenders want extra security before approving financing. 2. Property Type & Location Not all properties qualify for traditional mortgage financing. Lenders consider: Accessibility : Is the property accessible year-round (roads maintained, utilities available)? Condition : Seasonal or non-winterized cottages may not meet standard lending criteria. Zoning & Use : If it’s a rental, lenders want to ensure it complies with municipal bylaws and zoning regulations. Properties that fall outside these norms may require financing through alternative lenders, often with higher rates but more flexibility. 3. Rental Income Considerations If you’re buying a property with the intent to rent it out, lenders may factor the rental income into your mortgage application. Long-term rentals : Lenders typically accept 50–80% of the expected rental income when calculating your debt-service ratios. Short-term rentals (Airbnb, VRBO, etc.) : Many traditional lenders are cautious about using projected income from short-term rentals. Alternative lenders may be more flexible, depending on the property’s location and your financial profile. 4. Debt-Service Ratios Lenders use your Gross Debt Service (GDS) and Total Debt Service (TDS) ratios to determine if you can handle the mortgage payments alongside your other obligations. With investment or vacation properties, lenders may apply stricter guidelines, especially if your primary residence already carries a large mortgage. 5. Credit & Financial Stability Your credit score, employment history, and overall financial health still matter. Since vacation and rental properties are considered higher risk, lenders want reassurance that you can handle the additional debt—even if rental income fluctuates or the property sits vacant. 6. Insurance Requirements Rental properties often require specialized landlord insurance, and vacation homes may need coverage tailored to seasonal or secondary use. Lenders will want proof of adequate insurance before releasing mortgage funds. The Bottom Line Buying a vacation property or rental can be exciting, but financing these purchases comes with extra rules and considerations. From higher down payments to stricter property requirements, lenders want to be confident that you can handle the responsibility. If you’re considering a second property, the best step is to work with a mortgage professional who can compare lender requirements, outline your options, and find the financing that works best for you. Thinking about making your dream of a vacation or rental property a reality? Connect with us today.

Tips to Pay Off Your Mortgage Early

By Diane Buchanan • May 20, 2026

Owning a home feels great—carrying a large mortgage, not so much. The good news? With the right strategies, you can shorten your amortization, save thousands in interest, and become mortgage-free sooner than you think. Here are four proven ways to make it happen: 1. Switch to Accelerated Payments One of the simplest ways to reduce your mortgage faster is by moving from monthly payments to accelerated bi-weekly payments . Instead of 12 monthly payments a year, you’ll make 26 half-payments. That works out to the equivalent of one extra monthly payment each year, shaving years off your mortgage—often without you noticing much difference in your budget. 2. Increase Your Regular Payments Most mortgages allow you to boost your regular payment by 10–25%. Some even let you double up payments occasionally. Every extra dollar goes directly toward your principal, which means less interest and faster progress toward paying off your balance. 3. Make Lump-Sum Payments Depending on your lender, you may be able to make lump-sum payments of 10–25% of your original mortgage balance each year. This option is ideal if you receive a bonus, inheritance, or other windfall. Applying a lump sum directly to your principal immediately reduces the interest charged for the rest of your term. 4. Review Your Mortgage Annually It’s easy to put your mortgage on auto-pilot, but a yearly review keeps you in control. By sitting down with an independent mortgage professional, you can check if refinancing, restructuring, or adjusting terms could save you money. A quick annual review helps ensure your mortgage is always working for you—not against you. The Bottom Line Paying off your mortgage early doesn’t require a massive lifestyle change—it’s about making smart, consistent choices. Whether it’s accelerated payments, lump sums, or regular reviews, every step you take helps reduce your debt faster. If you’d like to explore strategies tailored to your situation—or want a free annual mortgage review—let’s connect. I’d be happy to help you find the fastest path to mortgage freedom.