Contractor / Builder Financing
for GTA renovations.
Contractor-direct financing is the fastest renovation funding path in Canada. We submit the application on your behalf through Financeit or Snap Home Finance, you get a decision in minutes, and approved funds disburse directly to us as work progresses. The catch is that the 0% promotional rates that make these offers attractive can trap you if the balance isn't cleared by the promotional deadline.
- Typical rate
- 0% promotional (6-12 months), 8-12% post-promo
- Setup time
- Same-day decision
- Min. credit score
- 600+
- Best for
- Same-day approval, small-to-mid renos
How it works
When you sign a contract with us, we offer to bundle financing through one of our partner platforms — Financeit or Snap Home Finance. The application takes about 15 minutes, runs a soft credit pull, and returns an approval (or counter-offer) within the hour.
Once approved, the lender pays us in tranches as we hit project milestones — typically 25% on contract signing, 25% at rough-in inspection, 25% at finish work start, and 25% at final walkthrough. You start making payments the month after the first disbursement.
The big appeal is the promotional period: most contractor financing offers come with 0% interest for 6, 12, or 18 months. Pay the balance off within that window and you've borrowed money interest-free.
Where it shines
This is the right product for: - Small to mid renos ($5K-$30K) where the rate per dollar matters less than the friction of getting funded - Homeowners with a 0% promotional plan they can realistically pay off in the promotional window (think: bonus coming in 6 months, tax refund, expected job change) - Cases where speed matters — you want to start in 2 weeks and don't have time to set up a HELOC - Credit scores 600-660 where prime HELOC qualifications would push back
Where it traps people
The 0% promotional rate is conditional. If you don't pay the balance in full by the deadline, retroactive interest applies. The lender treats the original principal as if it had been accruing at the regular rate (typically 9.99-12.99%) for the whole promotional period, and you owe the lump sum.
On a $20K balance over 12 months at 11.99%, retroactive interest is $2,398. That single fee is more than the entire savings vs. just using a credit line from day one. The homeowners we've seen burned by this almost always assumed they'd have the cash to clear it and didn't.
How to use it correctly
If you take a 0% promotional plan: - Set up an automatic monthly transfer to a separate savings account equal to 1/N of the balance (where N is the promotional months) - 30 days before the promotional deadline, pay the full balance from that savings account - Don't carry the balance one day past the deadline
If you can't realistically pay it off in the promotional window, take the regular-rate version of the same offer instead. The 8-12% APR is still cheaper than retroactive interest on the missed promotional rate.
When to skip it entirely
A HELOC at 7-9% beats a contractor financing product at 8-12% for any project larger than $30K where the homeowner has equity. The 1-3 point rate gap on large balances is meaningful — $50K over 5 years at 8% vs. 11% is roughly $4,400 in extra interest. Use this for speed and small amounts; switch to HELOC or refi for serious money.
We use this option most often for deck building, fencing, and smaller bathroom refreshes where the project value and promotional period are well-matched.
Worked example
What it actually costs.
Cedar deck rebuild in Brampton, customer wants to start in 2 weeks.
- Amount borrowed
- $18,500
- Rate
- 0% for 12 months, then 11.99%
- Term
- 12-month promotional (target payoff), 60-month fallback
- Monthly payment
- $1,542/month if paid in promotional window — $0 in interest
- Total interest cost
- $0 in interest if cleared by month 12; $2,219 retroactive if not
How to qualify.
- Credit score 600+ for Financeit prime tier
- Credit score 550+ for sub-prime / specialty tier (higher rates)
- Verifiable monthly income (employment, pension, or self-employed)
- No active bankruptcy or consumer proposal
- Active Canadian chequing account for monthly debits
Why it works
- Same-day approval — fastest renovation financing path
- 0% promotional rates for 6-18 months
- No appraisal, no legal fees, no title registration
- Available to credit scores as low as 600
- We handle the paperwork — you sign one document
Where it falls short
- Retroactive interest if promotional deadline missed
- Regular-rate APR is higher than HELOC or secured reno loan
- Less flexibility — can't restructure mid-contract
- Best for amounts under $30K — uneconomical above that
- Locked to the specific contractor (us) — money disburses to us, not you
See your project's price range — before you call.
Three questions, real numbers from 200+ Toronto-area projects. We'll email the range and a brief on what drives it up or down.
Step 1 of 3
What kind of project?
Frequently asked
About contractor financing financing.
- How fast can I actually get approved?
- Most applications return a decision within 15-30 minutes during business hours. Funds disburse to us within 1-2 business days of approval. You can start the project as soon as the contract is signed and the first tranche releases.
- What happens if I miss the promotional payoff date?
- Retroactive interest applies — the lender treats the entire promotional period as if it had been accruing at the regular APR. On a $20K balance at 11.99% over 12 months, that's roughly $2,398 added back to your balance.
- Can I pay this off with a HELOC later?
- Yes. Many homeowners take contractor financing for speed, then set up a HELOC during the construction period and pay off the contractor financing balance from the HELOC before the promotional rate expires. This combines the speed of contractor financing with the lower long-term rate of a HELOC.
- Does Financeit do a hard credit pull?
- The pre-approval is soft (no impact). The final approval — once you've agreed to the rate and terms — is a hard pull (5-10 point temporary dip). Don't apply to multiple lenders in the same week; that's what compounds credit damage.
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