I love my home, but I would really like to make some needed updates. Can you help me do that?
When you already love your home, it makes sense that you would want to stay and simply perform some renovations or upgrades so you can love it even more.
From kitchen renovations to energy saving upgrades, loft conversions or adding a second story; home renovations can turn your property into the dream home you’ve always wanted!
Canadians love customizing their homes to suit their needs and lifestyles while also adding tremendous value until the time comes when they choose to move or sell.
Financial Options
The main obstacle to home renovations is of course finding the money to pay for them. You have several traditional options when it comes to home renovation funds. Some examples are using a credit card or taking out a personal loan. However, as a homeowner, you have access to a much wider range of options.
If you have owned your home for more than a few years, you may be able to incorporate the cost of your home renovations into your mortgage. A home equity line of credit can help you free up the value tied into your home to pay for renovations and improvements, and the more money and value you have put into your home, the more money you may be able to borrow to renovate your home.
Another option is to refinance your mortgage. This is often a good choice with large renovations because you can spread the costs over a longer mortgage period. If you have a new home in mind and you plan to make major improvements soon after you purchase it, you may also be able to add these renovation costs into the mortgage. This is known as a Purchase Plus Improvements Mortgage.
With CMHC Mortgage Loan Insurance, you can secure a mortgage with a very small down payment. This covers the mortgage and the renovations, up to the value of not only the initial purchase but also the projected property value following the home renos.
These are usually a better option than conventional credit or selling off other investments. Home equity and loan products give you access to the cash you need at much lower interest than conventional credit. In addition, you have many flexible options available, even with a small down payment.
The Benefits of Using a Mortgage Broker
I’m ready to help you make sense of your mortgage and equity options for home renovations. As an expert mortgage broker, I partner with Canadians looking to make home improvements, and I can help you make the right decision, while also saving yourself time, money and extra effort.
