Your kitchen dates back to 1998, your basement takes on water, or you want to add a bedroom because a third kid is on the way. Paying for the work in cash is rare — most Quebec households finance their renos, and the cheapest option is almost always to pull the money out of the house itself.
But between a refinance, a HELOC, a renovation loan, or drawing on your readvanceable mortgage, there are cost differences that add up to thousands of dollars over the life of the project. This guide gives you the real 2026 Quebec ranges and helps you choose.
How much you can pull: the 80% LTV formula
In Canada, traditional A lenders accept refinances up to 80% of property value (loan-to-value 80%). The math is simple:
Available capital = (Current value × 80%) − Current mortgage balance
| Property value | Current balance | Max borrowable (80%) | Available capital |
|---|---|---|---|
| $400,000 | $250,000 | $320,000 | $70,000 |
| $550,000 | $380,000 | $440,000 | $60,000 |
| $650,000 | $300,000 | $520,000 | $220,000 |
| $800,000 | $500,000 | $640,000 | $140,000 |
According to the Quebec Professional Association of Real Estate Brokers (APCIQ), the median single-family home value in Montreal was around $620,000 in 2026, and $425,000 for Quebec as a whole. For most households who bought before 2020, accumulated equity comfortably exceeds the needs of an average renovation.
Real costs of a typical Quebec renovation
Before deciding how much to borrow, you need to quantify the project. 2026 ranges for the greater Montreal region (rural regions are 10-20% cheaper, high-end areas 20-40% pricier):
| Project | Low range | Mid range | High end |
|---|---|---|---|
| Full bathroom | $12,000 | $22,000 | $45,000 |
| Full kitchen | $25,000 | $45,000 | $90,000 |
| Finished basement (100 m²) | $30,000 | $55,000 | $90,000 |
| Roof (shingles) | $8,000 | $14,000 | $22,000 |
| Windows (10 units) | $12,000 | $20,000 | $32,000 |
| 400 sq ft addition | $90,000 | $140,000 | $220,000 |
| ADU / secondary suite | $120,000 | $180,000 | $260,000 |
Systematically add 15-20% contingency for surprises (structure, old plumbing, building code). A project that was "supposed to" cost $45,000 regularly ends up at $55,000. Borrow for the realistic scenario, not the initial quote.
The cost of refinancing itself
Beyond the amount borrowed, there are entry fees. They apply once:
| Item | Range |
|---|---|
| Notary fees (loan deed) | $1,200-1,800 |
| Real estate appraisal | $300-600 |
| Lender administrative fees | $0-500 |
| Discharge of existing mortgage (if transferring) | $300-450 |
| Prepayment penalty (if mid-term) | 3 months' interest OR IRD penalty |
| Total without penalty | $1,500-3,400 |
| Total with high IRD | $6,000-18,000 |
If you refinance at term maturity, you avoid the penalty — it's almost always the cheapest window. Details in our guide on when refinancing is worthwhile.
Refinance, HELOC, or renovation loan: the real comparison
Three options exist to fund renos; real interest costs vary enormously.
| Option | Typical 2026 rate | Entry fees | Flexibility |
|---|---|---|---|
| Full fixed-rate refi | 4.7-5.4% | $1,500-3,400 (+ possible penalty) | None (fixed amount) |
| HELOC | Prime + 0.5-1% (~7.7-8.2%) | $0-800 | Draw and repay at will |
| Unsecured renovation loan | 7-11% | $0-500 | Fixed amortization |
| Credit card / personal line | 9-22% | $0 | High but costly |
Concrete example: $60,000 renovation, repaid over 5 years.
- Mortgage refi at 5% → about $7,900 in interest paid + $3,000 entry fees = $10,900 total
- HELOC at 8% (5-year average if rates drop) → about $13,000 in interest + $500 fees = $13,500
- Unsecured renovation loan at 9% → about $14,700 in interest = $14,700
- Credit card at 20% → $35,000 in interest — absolutely avoid
Does it actually add value to the home?
Not all renos are equal at resale. Statistics compiled by the Appraisal Institute of Canada, cross-referenced with APCIQ data:
| Project | Resale recovery |
|---|---|
| Updated kitchen | 75-100% |
| Renovated bathroom | 75-100% |
| Paint, flooring | 60-100% |
| Windows, roof, insulation | 50-80% |
| Finished basement | 50-75% |
| In-ground pool | 25-50% (often less) |
| High-end landscaping | 25-50% |
If you refinance $90,000 for a project that adds $60,000 to resale value, you're paying $30,000 to improve your comfort — that's a legitimate choice, but one to make with your eyes open. An AMF-licensed broker can help model the combined impact (monthly payment + added value + interest cost).
Complementary programs worth exploring
Before refinancing, check whether the project qualifies for programs that reduce the amount you need to borrow:
- Purchase Plus Improvements (CMHC Improvements) — for a property you're buying and renovating at the same time, CMHC allows adding the cost of the work to the purchase mortgage. Not applicable if you already own.
- Rénoclimat (Transition énergétique Québec) — subsidies up to $5,000-15,000 for insulation, heat pumps, energy-efficient windows.
- RénoRégion (SHQ) — help for modest-income homeowners in rural regions.
- Heritage building restoration program — patrimonial buildings, specific to certain municipalities.
These programs reduce the portion to finance through refinance. Our article on when refinancing is worthwhile provides the evaluation framework.
Stress test and qualification
A refinance triggers a full new qualification:
- Credit score re-checked
- Recent income proof (T4, notice of assessment, or T1 for self-employed)
- GDS/TDS ratios recalculated
- Stress test at contract rate + 2% or 5.25%, whichever is higher
If your situation has deteriorated since purchase (new debt, job loss, income change), the eligible amount may be lower than the theoretical capacity. A broker simulates scenarios before submitting.
What Courteo does
Courteo is a matchmaking platform connecting visitors with AMF-licensed mortgage brokers. The broker:
- Calculates your real available capital based on your situation (not just the 80% formula).
- Compares full refi vs HELOC vs mix depending on your specific project.
- Identifies lenders that will fund your profile (some are stricter on major renos or projects with permits in progress).
- Quantifies the tax impact if part of the work creates a rental unit (ADU).
No approval promises, no rates displayed — it's the AMF-licensed broker's role to decide.
Frequently asked questions on renovation refinancing
Can I refinance before the end of the project, or do I need to wait for invoices?
You refinance beforehand. The lender advances the amount, you receive the money, and you pay contractors as work progresses. Some lenders offer a "progressive refi" variant where money is released in tranches based on progress, with inspections — useful for major projects (addition, ADU construction), but administratively heavier.
Can I include notary fees in the refinanced amount?
Yes, as long as the total stays under 80% LTV. Many households add $3,000-5,000 to the amount to cover notary fees + appraisal + a small contingency. It avoids taking cash out of pocket at signing.
Will renovations bump up my municipal assessment and my taxes?
Often yes, but with a 12-36 month lag depending on the municipality. Additions and storey additions are systematically reassessed at permit. A kitchen or bathroom redone without changing square footage is generally not reassessed. Check with the municipality before budgeting.
Can I refinance if the mortgage is CMHC-insured (less than 20% down at origin)?
No, not beyond the existing balance. Since 2016, insured mortgages can no longer be refinanced to pull out capital. You need to accumulate enough equity to fall below 80% LTV and refinance uninsured, or wait for renewal to restructure.