Are you living in your dream neighbourhood with great schools and nearby parks, but the interior of your home isn’t exactly as you pictured it to be? That’s ok – finding the location you want to raise your family in is sometimes the hardest park. The good news is that you can renovate your home to make it what you want it to be, but where will the money come from? Renovation costs – especially on older homes – can add up really quickly!
Renovations are a great way to take a home and make it exactly the way you want it to be. When you know you want to stay in your home for a long time and build a safe space for your family, it makes sense you want to come home to a space that is designed exactly as you want it to be. This is your chance to ensure your home is exactly what you want.
The good news is that you can get a loan specifically for renovating your home to make it exactly as you want it to be. In fact, there are a couple options for financing the renovation.
This kind of financing happens at the time you purchase your home. When you apply for a mortgage, your mortgage will also assume the costs of your renovation so you will have to estimate how much the upgrades are going to cost. This can be difficult as you don’t want to overestimate and have too much mortgage, but you also don’t want to underestimate and have to stop the renovation part way through. Consulting with a good contractor however can give you a good idea of what the costs will be.
If you have lived in your home for a while trying to decide what parts you want to renovate, or maybe you wanted to see how you would use the space before you changed it, then a renovation loan is probably the best option for you.
If you are getting a renovation loan, you have a couple options to look at. First, you might have enough equity in your home (depending on how much is left owing on your mortgage) to use the equity to secure a low interest loan to renovate your home.
A renovation loan will be for a specific amount of money and it will have to be paid in installment payments. This may not be ideal for your needs since the payment options are not flexible.
Line of Credit
We can also work with you to get a line of credit for ongoing renovation plans. We all know that unexpected expenses can come up during renovations and you might need to do some additional work you didn’t plan for. That’s what the line of credit is for. You can use a little bit now and have a buffer if you run into extra expenses. Additionally, a line of credit offers much more flexible payment options too, as some secured lines of credit offer interest only payments.
The benefit of a line of credit for home renovations is that you don’t have to keep reapplying for funds. If you renovate your bathroom now and pay it all back and then want to redo the flooring or the kitchen, as long as you keep the line of credit in good standing you will continue to have access to those funds.
With a renovation loan, you don’t have to get approval on exactly what you’re renovating – the money is yours to decide what you do with it. You can renovate one room at a time, or completely gut your house . . . it’s your call!
Make an appointment today to discuss the options you have for getting a renovation loan for your home. It’s easier than you think, and we work with dozens of lenders across the country so together we will find one with terms and repayment that works for you. Make your current home your dream home, and it’s closer than you think it is!
Renovation Loan FAQ's
Qualifying for a renovation loan isn’t based on the amount of time you’ve lived in your home. There are many factors taken into consideration as to whether you qualify for the loan, so book an appointment today and we will talk about your options.
Renovation loans are not restricted based on the type of renovation loan you are getting although the amount you can qualify for depends on a number of factors. Give us a call today so we can discuss your option.
Like any other money you borrow, the loan will still need to be paid back. If you have questions about the terms of repayment or what works best for you, one of our agents would be happy to discuss that with you before taking out the loan to make sure you are completely comfortable.