You may use all or part of your loan for home improvements. There are no major restrictions on the type of improvements to be made, within the boundaries of local building codes. Depending on the extent of the project, and the specific loan program, you typically have the choice of doing the work yourself, or using a licensed contractor. An appraisal may or may not be required.

A home improvement loan is a fully amortized, fixed rate 2nd mortgage. Placed in 2nd position on the property title, there is no affect on the terms of the existing 1st mortgage. You may choose a term from 5 to 25 years. The minimum loan amount is $15,000 unless stated otherwise on the application.

If you want to spend a significant amount of money on improving your home, you may be able to take out a lot more equity than you realized! Both insurers - GE Capital and CMHC, will insure new mortgages which are "topped up" for this purpose, and the total of your current mortgage and the new funds exceeds 75% of the current home value. Of course, if the total requirement is less than 75% of your home's current value, you should have little trouble getting the "top up" you need.

There is no equity is required. A loan program is available whether your home has equity, or not. The maximum loan amount can go as high as 125% of the value of your home.