Most GTA homeowners who look into renovation financing either assume they will not qualify, assume the interest makes it not worth doing, or have never had anyone explain the actual numbers. This piece walks through how financing through Financeit works, what it realistically costs with the arithmetic shown, when it makes sense, and when a different product is the better answer.
One note up front: we are contractors, not financial advisors. Everything below is general information about how the product works. Your own decision depends on your income, existing debt, and tax situation, and it is worth a conversation with a mortgage broker or financial advisor before you commit to any of it.
Financeit is a Canadian lending platform built specifically for home improvement financing. It is not a bank and not a general-purpose lender. The product is designed around how renovations actually run: variable project costs, staged work, and the reality that most households do not hold $50,000 to $150,000 in liquid savings.It operates through contractor partners. When you work with a partnered contractor, the application is handled as part of the project planning rather than as a separate errand with a bank.
Important characteristic: this is generally unsecured lending. It is not registered against your home the way a mortgage or a home equity line of credit is. That is the reason it is fast and accessible, and it is also the reason the interest rate is higher than a secured product. More on that comparison below.
Step 1: get a detailed written estimate. Financing starts with an accurate project cost. Once we have completed a site assessment and produced a written estimate, you have a real number to finance against. You can finance the whole amount or part of it, combining financing with savings to reduce the borrowed balance.
Step 2: apply online. We provide a secure application link. It takes five to ten minutes and captures basic personal and financial information. The initial eligibility check uses a soft credit inquiry, which does not affect your credit score.
Step 3: receive a decision. Many applications come back within minutes. Some require additional review. If approved, you receive an offer stating the amount, the interest rate, and the available terms. You are under no obligation until you sign.
Step 4: review the offer properly. This is the step people rush. Check the annual percentage rate, the total cost of borrowing over the full term, whether there are administration or origination fees, and what the early repayment terms are. All of it is disclosed in the offer.
Step 5: construction proceeds. Once the agreement is signed, financing is in place and work runs on the agreed schedule. Your repayment to Financeit is separate from how and when we invoice against the construction contract.
Step 6: repay. Monthly, bi-weekly, or weekly, whichever suits your cash flow. Many plans permit early repayment without penalty, though this varies by product and you should confirm it in your specific agreement.
Rates depend on creditworthiness and are disclosed before you commit. The examples below use an illustrative range so you can see the shape of the numbers. They are not a quote or an offer.
Five-year term:
| Amount | At about 10% | At about 13% |
|---|---|---|
| $25,000 | $531/month | $569/month |
| $60,000 | $1,274/month | $1,365/month |
| $100,000 | $2,124/month | $2,275/month |
Total cost of borrowing over five years:
| Amount | At about 10% | At about 13% |
|---|---|---|
| $25,000 | about $6,900 | about $9,100 |
| $60,000 | about $16,400 | about $21,900 |
| $100,000 | about $27,400 | about $36,500 |
A longer term lowers the payment and raises the total cost. $100,000 over ten years at about 10 percent is roughly $1,321 a month, but the total interest rises to roughly $58,500. That trade-off is the central decision in choosing a term.
This is where the numbers are strongest, and it is also where the claim usually gets overstated.A legal two-bedroom suite in the GTA rents for roughly $1,900 to $2,600 a month. On a $100,000 loan over five years, the payment is roughly $2,124 to $2,275 a month.
So gross rent at $2,200 roughly matches the payment. Net rent does not. Deduct vacancy, any utilities you cover, the insurance increase, maintenance, and income tax at your marginal rate, and $2,200 of gross rent is closer to $1,200 to $1,400 in your pocket.
The honest position: rental income substantially offsets the financing payment, and on a longer amortization it can come close to covering it. It does not typically cover a five-year payment outright from day one. What it does do is turn a $100,000 outlay into a manageable monthly gap rather than a wall, and once the loan is retired the income is entirely yours.That is still a strong case. It just is not the case that the suite pays for itself the day the tenant moves in, and you should plan around the real number rather than the marketing one.
Two other things to plan for: rental income is taxable, and a substantial conversion of part of your home to income-producing use can affect the principal residence exemption when you sell. Both are accountant questions and both are worth asking before you build.
This is the section most financing articles leave out, and it matters.
A home equity line of credit is secured against your home and typically carries a materially lower rate than unsecured renovation financing. If you have equity and qualify, a HELOC will usually cost less in interest. The trade-offs are that it takes longer to arrange, involves appraisal and legal costs, requires sufficient equity, and puts your home up as security.
A mortgage refinance or a blended increase can also fund a renovation at mortgage rates. Worth pricing if you are near a renewal date, though breaking a term early carries a penalty.
Cash, where you have it, costs nothing in interest. The counter-argument is that draining your reserves to zero for a renovation leaves you exposed if something else goes wrong, which is a real consideration.
Where Financeit is genuinely the better fit:
Price both. A broker can tell you in a phone call whether a HELOC is available to you and at what rate. If it is, and it is meaningfully cheaper, take it.
When the renovation produces income. A legal suite is the clearest case, for the reasons above.
When you have the income to service the payment comfortably and prefer to keep cash reserves intact. Funding a renovation from predictable monthly payments while leaving your emergency fund alone is a rational decision for a lot of households.
When waiting costs you something. Two years of saving for a suite is two years of forgone rent. That opportunity cost is real and it belongs in the comparison.
When the alternative is a partial renovation. Half-finishing a project to fit a cash budget frequently costs more in total than doing it once properly, because you pay twice for mobilization and disruption.
When you are already carrying debt that makes an additional payment tight. The renovation may create value, but not if servicing it creates financial stress. Run the payment against your actual monthly budget, not an optimistic one.
When a HELOC is available and materially cheaper. Check first.
When the renovation is discretionary and the payment is uncomfortable. A kitchen you want is different from a suite that earns.
When the project has not been properly scoped. Financing a number that is going to grow through change orders is how people end up short. Get a detailed written estimate against drawings before you finance anything.
Does applying affect my credit score? The initial eligibility check is a soft inquiry and does not. A hard inquiry may occur when you formally accept an offer, as with any lending product.
Can I finance only part of the project? Yes. Many homeowners finance 50 to 75 percent and fund the balance from savings to reduce the interest cost.
What scopes are eligible? All the work we do: kitchens, bathrooms, basement finishing, legal suites, main floor renovations, whole-home renovations, flooring, roofing, and windows. Financing limits and available amounts change, so confirm the current range at application.
Can I pay it off early? Most plans permit it. Confirm the specific provisions in your agreement before signing, since terms vary by product.
Is the rate fixed? Check the offer. Know before you sign whether your payment can change.
Maple Leaf Quality Renos will walk you through the Financeit process, provide a detailed written estimate to finance against, and tell you plainly if a HELOC or another product would serve you better.
Contact Maple Leaf Quality Renos for a free, no-obligation consultation and a detailed written estimate for your GTA renovation project.
Phone: +1 (647) 496-3360
Email: contact@mapleleafqualityrenos.ca
Website: www.mapleleafqualityrenos.ca
Serving Toronto, Mississauga, Brampton, Vaughan, Markham, Richmond Hill, Scarborough, Etobicoke, Oakville, Burlington, Oshawa, Hamilton, Kitchener, Barrie and all surrounding GTA communities.