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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What to Expect in the Closing Process: A Step-by-Step Guide

By Diane Buchanan • July 1, 2026

You’ve found the right home, your offer’s been accepted, and your financing is approved—congratulations! But before you can pick up the keys and celebrate, there’s one more important stage: the closing process. Closing is the final step in your homebuying journey, where all the paperwork, legal details, and financial transactions come together. It can feel overwhelming if you don’t know what to expect, but with the right preparation, closing can be smooth and stress-free. Here’s a step-by-step guide to help you understand the process. Step 1: Hire a Lawyer or Notary A real estate lawyer (or notary, depending on your province) handles the legal side of closing. They will: Review the purchase agreement and mortgage documents Conduct a title search to confirm the seller has the legal right to sell the property Ensure the mortgage lender is properly registered on the title Handle the transfer of funds between you, the lender, and the seller Your lawyer or notary will be your main point of contact during closing, so choose one you trust and who communicates clearly. Step 2: Finalize Your Mortgage Your lender will send the mortgage instructions directly to your lawyer or notary. At this stage: You’ll provide proof of property insurance (lenders require this before releasing funds) You’ll confirm your down payment and closing costs are available in your lawyer’s trust account The lawyer will prepare all documents for your review and signature Step 3: Pay Closing Costs Closing costs typically range from 1.5% to 4% of the purchase price. These can include: Legal fees Title insurance Land transfer tax (where applicable) Adjustments for property taxes or utilities prepaid by the seller Home inspection or appraisal fees (if not already paid) Your lawyer will provide a final statement of adjustments so you know exactly how much is due on closing day. Step 4: Sign the Paperwork A few days before closing, you’ll meet with your lawyer or notary to sign all the necessary documents, including: Mortgage agreement Title transfer Insurance confirmations Statement of adjustments Bring valid government-issued ID to this appointment. Step 5: Transfer of Funds On the day of closing: Your lender sends the mortgage funds to your lawyer Your lawyer combines these funds with your down payment and pays the seller Legal ownership of the property is transferred into your name The lender is registered on title as a secured creditor Step 6: Get the Keys! Once the paperwork is filed and the funds have cleared, your lawyer will confirm that the transaction is complete. You’ll then get the keys to your new home—officially making it yours. The Bottom Line The closing process is a series of important steps, but with the right team in place, it doesn’t have to be stressful. By working closely with your mortgage professional and lawyer, you’ll have guidance every step of the way—from signing the documents to turning the key in the front door. If you’d like help preparing for the closing process—or want a clear breakdown of your own closing costs— connect with us today.

Everything You Need to Know About Mortgage Financing in Canada

By Diane Buchanan • June 24, 2026

For most Canadians, buying a home isn’t possible without a mortgage. And while getting a mortgage may seem straightforward—borrow money, buy a home, pay it back—it’s the details that make the difference. Understanding how mortgages work (and what to watch out for) is key to keeping your borrowing costs as low as possible. The Basics: How a Mortgage Works A mortgage is a loan secured against your property. You agree to pay it back over an amortization period (often 25 years), divided into shorter terms (ranging from 6 months to 10 years). Each term comes with its own interest rate and rules. While the interest rate is important, it’s not the only thing that determines the true cost of your mortgage. Features, penalties, and flexibility all play a role—and sometimes a slightly higher rate can save you thousands in the long run. Key Questions to Ask Before Choosing a Mortgage How long will you stay in the property? Your timeframe helps determine the right term length and product. Do you need flexibility to move? If a work transfer or lifestyle change is possible, portability may be important. What are the penalties for breaking the mortgage early? This is one of the biggest factors in the real cost of borrowing. A low rate won’t save you if breaking costs you tens of thousands. How are penalties calculated? Some lenders use more borrower-friendly formulas than others. It’s not easy to calculate yourself—get professional help. Can you make extra payments? Prepayment privileges allow you to pay off your mortgage faster, potentially saving years of interest. How is the mortgage registered on title? Some registrations (like collateral charges) can limit your ability to switch lenders at renewal without extra costs. Which type of mortgage fits best? Fixed, variable, HELOCs, or even reverse mortgages each have their place depending on your financial and life situation. What’s your down payment? A larger down payment could reduce or eliminate mortgage insurance premiums, saving thousands upfront. Why the Lowest Rate Isn’t Always the Best Choice It’s tempting to chase the lowest rate, but mortgages with rock-bottom pricing often come with restrictive terms. For example, saving 0.10% on your rate may put a few extra dollars in your pocket each month, but if the mortgage has harsh penalties, you could end up paying thousands more if you break it early. The goal isn’t just the lowest rate—it’s the lowest overall cost of borrowing . That’s why it’s so important to look beyond the headline number and consider the whole picture. The Bottom Line Mortgage financing in Canada is about more than rate shopping. It’s about aligning your mortgage with your financial goals, lifestyle, and future plans. The best way to do that is to work with an independent mortgage professional who can walk you through the fine print and help you secure the product that truly keeps your costs low. If you’d like to explore your options—or review your current mortgage to see if it’s really working in your favour—let’s connect. I’d be happy to help.