Mortgage Blog

3 Easy Ways To Finance A Home Renovation

August 13, 2019 | Posted by: Holly Cochrane

Are you wondering how you are going to pay for your home renovations? Holly Cochrane from the Holly Cochrane Mortgage Team understands. “Contemplating hardwood floors, a new kitchen or energy efficient solutions for your new or existing home can become stressful when you are wondering how you are going to pay for your renovation project,” says Holly. “Let’s look at the solutions…”

Here, Holly and her team have assessed some of the affordable financing solutions that may be available to you to renovate the home of your dreams:

1. Mortgage Refinancing

Take advantage of record low interest rates and spread your renovation financing repayment over a long period of time by refinancing your mortgage.

Benefits:

• Borrow up to 80% of you home’s appraised value (less any outstanding mortgage balance)
• Pay less interest than credit card or personal loan rates.
• Access funds immediately
• Suitable for large scale renovations.

2. Financing improvements upon-purchase

Finance your renovation project at the time of a new purchase by adding the estimated costs to your mortgage with CMHC Mortgage Loan Insurance. Holly explains “You can obtain financing with only 5% down payment for both the purchase of your home and the renovations for up to 95% of the value after renovations.”

Benefits:

• Funds advanced for up to 95% of the value after renovations
• No additional fees or premiums for progress advances
• Competitive interest rates
• CMHC issues premium rebates for Energy saving renovations

3. Secured Line Of Credit & Home Equity Loans

Use a secured line of credit or home equity loan to pay for your renovations. Securing your renovation loan against the equity in your home can typically be up to 80% of the property value; accessible at any time.

Benefits:

• Lower interest rates than non secured financing
• Access funds at any time
• Interest only payments

With so many financing solutions available to you, your best option is to discuss with a mortgage professional what will best meet your personal situation. Contact the Holly Cochrane Mortgage Team on 780-485-7908 to learn how you could get started on your home renovations project.

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