It depends on several factors, including how you plan to use the funds and how quickly you intend to repay your loan. Do you need all the money up front, or in stages as the reno progresses? 

Refinancing your mortgage typically comes with a lower interest rate than a home-equity line of credit, but you pay interest on the entire mortgage amount as soon as it starts. With a home equity line of credit, also known as a HELOC, you have access to a certain total amount that you can draw from periodically, and you only pay interest on the amount you use. 

For a mortgage refinancing, you can borrow up to 80 percent of your home’s appraised value, minus any outstanding amount on your existing mortgage. For a home equity line of credit, you can still borrow up to 80 percent of the value of your home, but only 65 percent can be in the form of the HELOC. 

Renewing your mortgage means that when your term is up, Hub will help you review your rate with your existing lender and others to find the best option. When you renew, you’re typically not changing your outstanding principal. Refinancing means you change your deal, and may borrow a different amount than you previously had. You get a new rate, possibly a new lender, and a new term. Refinancing can be useful if the interest rate drops, but it’s best to reach out to a mortgage broker like Hub to discuss what would be best for you. There can be penalties to refinancing before your term is up. We’ll confirm whether paying a penalty is worth it to save you money in the long run.