Looking for someone that offers renovation loans? One thing you will discover quickly is you have a myriad of choices. This can be a good thing, but it can also make your search for what you need much harder.

Luckily, this guide can help you sift through your options to discover what suits you best in a hurry. You might be surprised by a few aspects of renovation loans that you may not know.

Does the Lender Put a Lien on your Property?

Most lenders grant credit for renovation loans based on the equity in your property. Equity is the difference between what you owe and your home’s worth.

While this may seem well and good, they won’t rely on your promise to repay. Instead, the lender registers a lien against the title of your home for the amount you owe.

A lien is basically a right to hold onto your property until you’ve paid your debt. The lender places one on the title to your home when you take out a home equity loan, a second mortgage, or you refinance. Should you default on your loan, the lender could initiate proceedings, sell your home, and recoup their debt.

Fortunately, not all renovation loans involve putting a lien on your property. These loans depend on your income, not the equity in your property. Consequently, you never put your home at risk.

Is Their Application Process Difficult?

Every lender has their own requirements and application method. However, when it comes to renovation loans you will quickly see two basic categories: traditional brick and mortar lenders and online alternative lenders.

We all know who the traditional lenders include – big banks and credit unions. They do things a particular way and have done so for many years. Applying for renovation loans usually starts with an appointment.

When you arrive, they will probably ask you for bank statements, a property appraisal and survey, and multiple contractor quotes. You may also need to obtain a lawyer if you’re refinancing or taking out a second mortgage since they will want a title search. They may want you to pay title insurance too.

Luckily, alternative lenders aren’t as rigid and they usually offer a simple online application process. This includes a quick bank verification process and basic employment and personal information.

They’re not concerned about a property survey or appraisal since they’re not lending against your home. They just want to ensure you earn enough to comfortably repay your loan.

What About Your Credit?

Unfortunately, even after you jump through all the hoops a traditional lender may decide not to grant you credit. If they don’t like the appraisal amount or don’t think there’s enough equity in your property, they will just say “no”.

The worst part is that they will definitely run a hard credit check on your credit file when you apply. That inquiry stays on your credit report, even when they don’t give you one of their renovation loans.

If you only have one small credit problem, they could easily turn you down. If you decide to try again with another lender, the new lender may see that inquiry as a red flag signaling credit difficulty.

Fortunately, a good online lender uses a soft credit inquiry that doesn’t stay on your credit file. You can apply as many times as you wish, as it does not impact your credit score. They also rely less heavily on your credit report. Instead, they use an artificial intelligence assessment that provides a better overall view of your financial position.

As a result, applicants that have been turned down through a traditional lender may have a better chance of approval.

Do You Have to Stick to the Planned Project?

Traditional lenders ask for contractor quotes and survey certificates for a reason – they want to tie the loan to specific activities. However, as anyone who has ever done a renovation can tell you, they rarely go as planned.

So, what happens if you’ve been approved for a renovation loan for the bathroom and you decide to do your kitchen cabinets instead? Can you use the funds for the new project instead?

The answer is usually no – you have to start all over again. You’ll need to submit new quotes and plans. Of course, you can just go ahead and do what you want if you choose a good online lender instead.

A good online lender isn’t concerned with how you use funds from their renovation loans. They’re only interested in how much you want to borrow and that you can repay. The rest is up to you.

Do They Limit Renovation Choices?

Just when you thought things couldn’t get any more complicated, many traditional lenders don’t grant credit if you want to do your renovations yourself. Either that, or they only offer their renovation loans for specific project types.

For instance, they might be happy to issue a loan for a bathroom upgrade, but not for landscaping. They may give you a loan if you want to replace your roof, but not if you want to build a deck.

Luckily, it doesn’t have to be that way. A good online lender offers renovation loans you can use for any project of your choice.

How Long Do They Keep You Waiting?

Even if you decide to go with a traditional lender, chances are you aren’t going to find out whether you’re approved for days. Just try getting a solid answer from them when you apply. You’ll probably get a response like, “It shouldn’t be too long”.

Taking time out of your busy schedule to go to their office is bad enough, but why should you have to wait after all that fuss? Sure, they may have other applications to assess, but how long does that take? You want to start on your project.

Even if they approve you, it means another trip to their office to sign your loan documents. Then you’ll wait again for the funds. That could easily delay your project for days for a second time.

Once again, it doesn’t have to be that way. A good online lender lets you know if you’re approved within minutes, not days or weeks. If you decide to move forward, it happens quickly and painlessly too.

You won’t need to visit an office to sign your loan documents as everything is handled electronically. Did we mention once you sign your loan documents you could have the funds within a day?

Do They Only Fund Big Projects?

Home equity loans may suit major projects, if you can qualify and are willing to use your home as collateral. But what if you only want to borrow a smaller amount?

Big banks tend to focus on large expenses and chances are they won’t be too interested. It’s too much trouble for such a small return.

Luckily, you can obtain renovation loans for $15,000, or less. That could be all you need for stone countertops in the kitchen, an upgraded electrical system, or a new deck.

Do They Offer Flexible Renovation Loans?

Once you decide on a loan amount, a good lender offers a variety of payment frequency and repayment term options. If you want affordable payments, you can spread out the loan over up to 60-months. If you want accelerate repayment, you can pay bi-weekly instead of monthly to cut down on interest.

You can also choose a shorter term if you’re looking to spruce up your home so you can put it on the market. Just pay the loan off, without penalty, when you finalize the sale. That brings us to the next consideration – fees.

Will They Penalize You for Prepayment?

If you’re considering a traditional lender, read the fine print before you sign. Will they levy a prepayment fee if you decide to pay your loan off early?

This may seem unlikely, since you’d think they’d be happy to get their money early. However, this is almost always true if you decide to refinance or take out a second mortgage. This could amount to three-months interest, or more, depending on your mortgage type.

Fortunately, a good lender offers renovation loans without this unnecessary fee. Make extra payments, larger payments, or pay the balance off whenever you want – penalty-free.

FlexMoney Renovation Loans

Here is a list of the features of our renovation loans to help you decide whether they suit your needs:

  • Renovation loans from $500 to $15,000
  • Repayment terms between 6-months and 5-years
  • Weekly, bi-weekly, semi-monthly, and monthly payment options
  • No fees & competitive interest rates
  • Fast money – funds release usually within 24-hours after you sign your loan documents digitally
  • 100% online – fill out an application 24/7 from any device
  • 100% Canadian – our customer service representatives live and work here
  • Licensed lender – we’re licensed in Ontario, British Columbia, Alberta, New Brunswick, Nova Scotia, and Newfoundland


You don’t need to dig around on our website to discover what we need from you and when we can’t help. Our requirements and restrictions are listed below:


  • Canadian citizen – at least 20-years old
  • With the same employer for at least the last 3-months
  • Earning at least $2,000 per month for at least the last three months (We will consider income from self-employment, the Canadian Pension Program (CPP), the Old Age Security (OAS), or from various private and public pension programs)
  • Own a mobile phone and have an email address and active Canadian bank account with at least three months of transaction and banking history.


Unfortunately, we can’t lend to everyone. If you fall into one of the following positions, we regrettably can’t help:

  • Currently enrolled in an active bankruptcy, consumer proposal, or credit counselling program
  • Your income comes form Employment Insurance (EI), Disability Benefits, Canada Child Benefit, Student Aid or COVID-19 relief benefits.

Find Out More About Our Renovation Loans

If you want more information or you’re ready to apply, please visit our website. Get the money you need for your project quickly and effortlessly.