People are often motivated to make positive improvements that will upgrade their home, but they don’t have the cash available to pay for it upfront.

Mortgage Refinance

One of the most common solutions, if you’re already a homeowner, would be to think about accessing the equity in your home through refinancing your existing mortgage. A mid-term mortgage refinance could be a good financial decision depending on the terms of your existing mortgage. There could be a chance of lowering your overall cost of borrowing even while adding in the funds for your home renovation goal.

Each financial institution is unique, but it never hurts to enquire about your options, run the numbers and look at what is currently available to you. If there is no urgency, it could be worth waiting until your term is up for renewal, as this is a great time to refinance because you won’t ensue any penalties to break your existing mortgage. Whether you refinance mid-term or at renewal, you are able to access up to 80% of the appraisal value of your property assuming that you qualify for a larger borrowing amount.

Home Equity Line Of Credit

You can speak to your bank about an unsecured line of credit, and if you have a large amount of equity in your home, a home equity line of credit could be a better option for your home renovations. High credit rates are usually involved when you opt in for an unsecured line of credit in contrast a home equity lines of credit uses your home as collateral allowing the lender to give you much better terms and rates. There are lots of options when it comes to an HELOC so let us know if you’d like to talk more about it as we are available to speak with you anytime.

Purchase Plus Renovations

If your goal is to buy a property that needs some work often lenders will allow you to borrow more money within your mortgage to supply the cost of your renovations. This is called a purchase plus improvements. It’s important to remember that renovations must always increase the overall value of the property. There are some rules to follow and many details to remember but we can definitely achieve this goal together.

If you would like to discuss using your current mortgage to fund the cost of renovating your current home or future home, we are happy to assist you with all the information you will need to make your goals a success.