Financing renovations in Grand Montréal by refinancing: up to 80% of value, minus the balance, minus the penalty. Do that math before comparing two monthly payments.
The 80% limit applies to the lender’s appraised value, so your purchase price and the neighbour’s sale don’t count. Add the penalty for breaking your term to the calculation. Sometimes it kills the whole idea.
Documents to have ready
Your mortgage statement with the balance and estimated penalty, the tax bill, your notices of assessment, and the list of debts you plan to pay off. Ask your current lender for the penalty in writing. The real number often differs from what they told you by phone.
Available equity
As a rule you can refinance up to 80% of the value, minus what you still owe. A $500,000 home in Grand Montréal with $250,000 left on the mortgage works out to roughly $150,000, before you count the penalty for breaking the term.
Penalty and fees in Grand Montréal
Before comparing two monthly payments, add up what the change costs: the penalty, legal fees, the appraisal and the new loan’s fees. A lower payment that takes six years to pay back those costs is not a saving. Run the numbers for Grand Montréal first.
Debts or work financed
The work being financed is itemised by quote, and the money is often held back and released as the work moves along rather than paid out in full at signing.
New payment
A lower monthly payment and a lower total cost are two different things. Stretching the amortization eases the budget now and adds years of interest, so compare both figures before you sign anything.
To prepare
What to gather.
Current mortgage balance
Property value
Debts or project to finance
Mortgage penalty
New payment
Available equity
Frequently asked
Can the file be reviewed remotely?+
Yes. It all runs by phone, email or video call, and documents go through online. We can meet in person, but most files get settled without anyone having to travel.
How much can be refinanced?+
Up to 80% of the property’s value, as the lender’s appraisal sees it, not as the price you paid. If you break the current term, the penalty goes into the calculation, and it is often what decides whether the deal is worth doing.
Buying, renewing, refinancing, or something a bit out of the ordinary: tell us where you’re at, even if it’s still fuzzy. Mathieu gets back to you with next steps and the documents to pull together.
