Now that spring is on the horizon, it’s a great time to start thinking about future home renovation projects. Maybe you are considering re-tiling your bathroom, upgrading your kitchen, or even installing some energy efficient windows for your home!
Whatever the case, one concern is probably how you’re going to pay for this home renovation. I’ve written this blog to give homeowners in Hamilton, Burlington and the surrounding areas a few ideas for affordable financing options. As a mortgage broker in Burlington with over 20 years of experience in this industry, I want to help clients get “the home of their dreams”—and this commitment extends beyond the initial purchase of their home to renovations as well.
1. Cover the Renovation by Refinancing Your Mortgage
Refinancing your mortgage is a great way to spread renovation financing repayments over a long period of time. You can borrow up 80% of your home’s appraised value this way, paying less interest than credit card or personal loan rates—thanks to record low interest rates. You also get access to the funds immediately! This option works well for bigger renovations such as basements, and big backyard projects.
2. Add Renovation Costs to Your Mortgage When You Buy a New Home
If you are still in the process of buying a home, you can finance your renovation project by adding its estimated costs to your mortgage. Up to $40,000 is available to customize your new home. CMHC also issues premium rebates for energy saving renovations, so this is a great option to consider if you’re looking to “go green.”
Adding renovation costs to a mortgage allows homeowners in Hamilton, Burlington and the GTA to finance both with only a 5% down payment. This is a golden opportunity to be considered as once you take possession of your new home 80% becomes the maximum available. With this option, you will be advanced funds for up to 95% of the value after renovation and offered the same outstanding interest rates available for your mortgage.
3. Finance the Renovation Using a Secured Line of Credit & Home Equity Loans.
Did you know that using the equity in your home to secure your renovation loan can allow access to 80% of your property value? This option provides lower interest rates than unsecured financing and requires interest-only payments. The funds are also accessible at any time!
Rob Cagnin, Mortgage Architects,
(905) 634-6111 ext 113