Expanding Your Home: A Smart Move in 2025
Planiprêt
Sep 11, 2025
When space starts to feel tight, our first instinct is often to look for a bigger house. But moving isn’t always the best solution. You love your neighbourhood, property prices have gone up, and spacious homes may be out of reach.
So why not consider expanding your current home?
Adding a garage, a bedroom, or even a second storey can transform your living space and increase your property’s value.
Five Questions to Ask Before You Begin
- What’s the cost of the work with a certified contractor?
Get realistic estimates from professionals accredited by the ACQ or APCHQ, ensuring quality and compliance with industry standards. - Does your project comply with municipal regulations?
Every municipality has its own zoning and permit rules. It’s essential to check before starting. - Will the renovations increase your home’s value?
A well-planned expansion can boost your property’s market value, especially in high-demand areas like Montreal or Quebec City. - Do you have the necessary budget?
Construction costs have risen slightly in 2025, but financing options have also evolved. - How will you finance the renovations?
Good news: you can use your mortgage to fund your renovations. By refinancing your loan, you may access a portion of your home’s equity.
Why Use Your Mortgage?
Personal loan interest rates range from 7% to 11%, with amortization typically capped at 7 years. Refinancing your mortgage, however, offers:
- Lower interest rates, generally around 5% to 6% in 2025 for conventional loans
- Maximum amortization of 25 years, as per current rules for uninsured refinancing
- More manageable monthly payments, helping you complete your renovations without straining your budget
A Real-Life Example
Let’s say your home is valued at $600,000 and your current mortgage balance is $350,000. You could refinance up to 80% of the value, or $480,000, giving you access to $130,000 for your renovations. That’s enough to expand your home—without changing your address.
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