How can you finance your renovations?

February 11, 2021

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If you want to get a loan for the renovation of your new home, this article will show to you the options available. Renovations can happen for many reasons including creating a new design, adding resale value, converting space, saving energy, installing a swimming pool etc. Whatever the reason for your project, contact a broker about your options.

TAKE A LOOK AT THESE AFFORDABLE FINANCING SOULTIONS TO RENOVATE THE HOME OF YOUR DREAMS!

1. Mortgage Refinancing

Take advantage of record low interest rates and spread your renovation financing repayment over a long period of time 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 card or personal loan rates

• Access funds immediately

• Suitable for large scale renovations

2. Secured Line of Credit & Home Equity Loans

Use a secured line of credit or home equity loan to pay for your renovation. Securing your renovation loan against the equity in your home can typically be up to 80% of the property value; accessible at any time.

Benefits

• Lower interest rates than unsecured financing

• Access funds at any time

• Interest only payments

3. Financing improvements upon purchase

Finance your renovation project at the time of a new purchase by adding the estimated costs to your mortgage with Mortgage Loan Insurance. You can obtain financing with only 5% down payment for both the purchase of your home and the renovations for up to 95% of the value after renovations!

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 renovations

You can finance your renovations and make little changes in your home by following these small steps: