$300,000 Private Second Mortgage Renovation Financing in White Rock Boosts Home Value Without Triggering Break Penalty

Client: Homeowner in White Rock, BC

Property Value (Pre-Reno): $1,700,000 CAD

Existing Mortgage: $1,100,000 CAD at 4.9% (BMO, 1 year remaining)

Additional Financing: $300,000 CAD via Private Second MortgageTarget

Post-Reno Value: $2,300,000 CAD

Our client owned a desirable residential property in White Rock, BC. With a fixed-rate residential mortgage from BMO at 4.9% and one year remaining, refinancing to access renovation funds would have triggered a significant prepayment penalty. Selling was also not ideal in a soft market.

Instead, the client explored alternative home financing strategies to access capital for strategic renovations aimed at increasing property value and marketability.

Our Approach

We arranged a $300,000 private second mortgage through a trusted institutional private financing partner. The facility carried a 9% interest rate with a one-year open term—allowing the client to proceed with renovations while preserving the favorable terms of their existing first mortgage.

Renovation Scope

• Full kitchen remodel

• Upgrades to outdoor living space

• Premium finishes and home staging enhancements

  
  

Results

• No Break Penalty: The existing BMO residential mortgage remained untouched.

• Fast Funding: The client accessed capital within days, with minimal documentation.

• Value Creation: The post-renovation appraisal projected a value of $2.3 million.

• Optionality Preserved: With increased equity, the homeowner retained flexibility to refinance later or sell at a higher return.

  
  

This case illustrates how a well-structured private mortgage and second mortgage can serve as an effective alternative mortgage solution, helping homeowners unlock equity without disrupting existing financing. By using private financing, the client funded high-ROI upgrades while maintaining financial control and avoiding unnecessary costs.

Discover how we’ve helped clients secure the funding they needed by exploring our case studies. Visit our services page to see everything we can do for you.

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