3 Affordable Ways To Pay for Your Home Renovation
Planning a home renovation is a huge undertaking. Exploring designs, interviewing contractors, and finalizing budgets are just a few of the details that are involved in the home improvement process. Whether you are completing an entire home makeover or just focusing on remodeling a single space (like your kitchen or bathroom), the investment of time and money that goes into any sized project is substantial. If you’ve been dreaming about a home reno project but haven’t found yourself to be in the right financial situation to get started, then our team at River City Financial may have the ideal solution for you! Take a look at these three affordable ways our team can help you pay for your next home renovation project.
1. Mortgage Refinancing
It’s the perfect time to take advantage of record low interest rates! By choosing the route of mortgage refinancing you can spread your renovation financing repayment over long periods of time, plus you’ll have immediate access to funds – this means you can get started on your home remodel right sooner rather than later! Mortgage refinancing gives you the opportunity to borrow up to 80% of your home’s appraised value (less any outstanding mortgage balance). If you have a large-scale renovation in mind, this is an excellent option to explore.
2. Financing improvements upon purchase
An option that many new home buyers often overlook is the chance to finance a renovation project at the time of a new home purchase. Take this approach by adding the estimated costs of a reno project to your mortgage with CMHC Mortgage Loan Insurance. You can obtain financing with only 5% down payment for both the purchase of your home and the renovations! The CMHC Mortgage Loan Insurance option gives you advanced funds for up to 95% of the value after renovations, plus you will have no additional fees or premiums for progress advances. Competitive interest rates and CMHC premium rebates for Energy saving renovations are also advantages of this savvy approach.
3. Secured Line of Credit & Home Equity Loans
Finally, there’s the option to use a secured line of credit or home equity loan to pay for your home renovation. Securing your renovation loan against the equity in your home can typically add up to 80% of the property value – and it’s accessible at any time. Added benefits include having a lower interest rate than what you would be subjected to with non-secured financing, your funds can be accessed at any time, and you’ll be making interest-only payments.
Finding a financial expert who you can trust to help find the most suitable financing solution for your individual needs is the first step towards a successful home renovation. Our team at River City Financial has the knowledge and experience to help make your reno project a less stressful process! Contact us today if you’re planning on renovating – our team is ready to help no matter how big or small your project is.