Renovation Loan Milton

If you are a homeowner in Milton and you have been contemplating a home renovation, perhaps you have decided that this is the year to undertake that home improvement project. Renovations such as updating your kitchen, finishing your basement, or even adding a whole addition to your home can help you get more functionality and enjoyment out of your home, but it can also increase your home’s value.

While home improvement projects can be exciting however, they can also be pricey. To fund your renovation, you will either have to dig into your savings or you could get a home renovation loan.

What is a renovation loan?

A renovation loan is really any loan that allows you to finance your home renovation, however for the purposes of this article, we will be talking specifically about borrowing against your home equity. When you borrow from your home equity – often in the form of a second mortgage or in the form of home refinancing – you typically get much better interest rates than with other types of loans.

Also, because most lenders will allow you to borrow up to 80% of your home equity, the amount you are able to borrow can be quite substantial. This makes this type of borrowing ideal for large projects such as home renovations.

Why should you choose a Renovation Loan in Milton?

Home renovations can be a really smart investment. Not only can they make your home more liveable for your and your family, but the right home improvements can even increase the value of your home.

As we have already mentioned, with a home renovation loan you can typically borrow a large sum of money at a low interest rate, which is good for pricey home improvements. Compared to other types of loans, like credit cards, you can usually borrow a much higher amount at a much lower interest rate.

Even if you can afford to finance your home renovation on your own, it is quite often still in your best interests to use a home renovation loan. For example, if you have money in your TFSA, you may already be making a higher return on it than the amount of interest you would pay if you got the renovation loan instead.

How to get the best rates for Renovation Loans in Milton

While rates for renovation loans tend to be quite reasonable, they still vary from lender to lender. So to get the best rate possible, it pays to work with a mortgage broker who can compare rates on your behalf and help you to get the best deal.

Mortgage brokers work with a wide assortment of lenders, which means that they can shop around on your behalf comparing interest rates. Plus, mortgage brokers often have access to rates not advertised publicly by lenders, so even if you were to take the time to shop around on your own, you would likely still do better with the help of a mortgage broker.

How to get Renovation Loan in Milton?

As mentioned, your first step if you want to get a renovation loan in Milton should be to contact your mortgage broker. Your mortgage broker will spend some time with you to get to know your situation. Some of the things that your mortgage broker will want to find our are:

  • How much you wish to borrow.
  • What you still owe on your current mortgage.
  • When your mortgage comes due for renewal.
  • How much equity you likely have in your home (this may require a home appraisal)
  • Your credit score.

Once your broker has assessed your situation, they will recommend the best type of renovation loan to suit your needs. They will compare offerings of different lenders in order to get you the best rate.

At the same time, your mortgage broker will let you know what information and documents your lender will need. This may include things like proof of employment or income as well as statements about your income and liabilities. Depending on how much you would like to borrow, you may also need to get a home appraisal – and your broker can guide you on how to do this as well.

When all the documents have been gathered, your mortgage broker will help you to complete the application and submit it to the lender on your behalf.

Advantages of Using a Mortgage Broker for Renovation Loan in Milton

If you want to get a home renovation loan in Milton, it is best to work with a mortgage broker. Some of the advantages of working with a broker include:

  • They can advise you on the best type of loan to get.
  • They can help you get the best possible interest rate.
  • They can guide you on what documents you need to gather.
  • They can help you with the application process and answer your questions.

Contact us today!

If you are interested in learning more about getting a renovation loan in Milton, call us today to speak with one of our brokers.