# How much equity can you access for renovations?

> The equity available for renovations depends on the Loan-to-Value (LTV) ratio and CMHC guidelines.

Category: Refinance
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/refinance/how-much-equity-can-you-access-for-renovations

## Answer
| Feature                  | Description                                                                    |
|--------------------------|--------------------------------------------------------------------------------|
| **Maximum LTV Ratio**    | CMHC insures refinance loans up to 80% LTV for owner-occupied properties.        |
| **LTV Recalculation**    | OSFI requires LTV to be recalculated upon refinancing.                            |
| **Prudent Valuation**    | Financial institutions need conservative valuation criteria, independently assessed. |
| **HELOCs LTV limit**    | FRFIs should limit the non-amortizing HELOC component to a maximum authorized LTV ratio of less than or equal to 65 percent. |

## Institutional highlights
- You can typically borrow up to 80% of your home's value when refinancing to pay for renovations if your mortgage is insured.
- Keep in mind that your lender will recalculate your loan-to-value (LTV) ratio when you refinance your mortgage.
- Your lender will need to determine your home's current market value using careful and realistic methods.
- If you're using a Home Equity Line of Credit (HELOC), you usually can't borrow more than 65% of your home's value through it.

## 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