# How do advancing options work with CMHC for renovation projects?

> CMHC offers different advancing options based on the renovation scope.

Category: Refinance
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/refinance/how-do-advancing-options-work-with-cmhc-for-renovation-projects

## Answer
| Advance Type        | Requirements                                                                    |
|---------------------|---------------------------------------------------------------------------------|
| **Single Advances**   | Improvement costs ≤ 10% of the as-improved value.                               |
| **Progress Advances** | Required for new construction or improvement costs > 10% of the as-improved value. |
| **Full Service**      | CMHC validates up to 4 consecutive advances at no cost.                            |
| **Basic Service**     | Lender validates advances without CMHC pre-approval.                              |

## Institutional highlights
- If your renovation costs are small (under 10% of your home's value after the reno), you'll likely get the full loan amount upfront.
- For bigger projects (new builds or renos over 10% of the home's future value), the money will be released in stages as work is completed.
- With some mortgages, CMHC will check and approve up to four payments to you during the renovation, at no extra charge.
- Other mortgages let your lender approve the payments without CMHC getting involved first.

## Related guide
- https://ratellow.com/guides/refinancing-for-renovations

## Sources
- Page 3 — https://assets.cmhc-schl.gc.ca/sf/project/cmhc/pdfs/factsheets/new/cmhc-quick-reference.pdf#page=3
- Page 2 — https://assets.cmhc-schl.gc.ca/sf/project/cmhc/pdfs/factsheets/new/cmhc-quick-reference.pdf#page=2
- Footnotes — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/capital-adequacy-requirements-car-guideline-2026
- LTV Ratio Frameworks — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.4.3