Mortgage Blog
Wondering How to Pay For Home Renovations?
April 23, 2023 | Posted by: Sharon Patton
Wondering How to Pay for Your Home Renovation?
Are you contemplating hardwood floors, a new kitchen, or energy-efficient solutions for your existing or new home? Are you wondering how to pay for this renovation project? Let's take a look at these affordable financing solutions to renovate the home of your dreams! Let’s explore the tools we have to make your renovations a reality!
Mortgage Refinancing
Take advantage of low-interest rates and spread your renovation financing repayment over a long period by refinancing your mortgage.
Benefits:
- Borrow up to 80% of your home's appraised value (less any outstanding mortgage balance)
- Pay less interest than credit cards or personal loans
- Access funds immediately
- Suitable for large-scale renovations
Financing Improvements Upon-Purchase
If you have not yet bought that home, financing your renovation at the time of purchase with a purchase plus improvement mortgage may be an option. It can assist with simple upgrades such as paint, flooring, windows, hot water tank, new furnace, kitchen updates, bathroom updates, new roof, basement finishing, and more.
Benefits:
- Funds advanced for up to 95% of the value after renovations
- No additional fees or premiums for progress advances
- Competitive interest rates
- CMHC issues premium rebates for Energy saving renovation.
- Borrow between 10% and 20% of the initial property value for renovations
Secured Line of Credit & Home Equity Loans
Use a secured line of credit or home equity loan to pay for your renovations. Securing your renovation loan against the equity in your home can be accessed at any time.
Benefits:
- Lower interest rates than non-secured financing
- Access funds at any time
- Interest-only payments
If you are thinking about home renovations or improvements let's chat and review your financing options today!
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