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Alternatives to Home Equity and Personal Loans for Home Renovation

General Faizal Garasia 4 Jul

Are there any alternative ways to get a home renovation loan from Home Equity and Personal Loans? You can also check these options if you’re looking for alternative options for the Home Equity and Personal Loans.

Home Equity Line of Credit

Home equity lines of credit, a type of home equity loan, allows you to use the equity in your home as collateral. Home equity lines of credit are revolving, unlike a home equity loan. This allows you to borrow and pay back a certain percentage of your home equity for the full term period.

Cash-Out Refinancing

A cash-out refinance, also similar to a home equity loan, is new to the mortgage. However, a cash-out refinance replaces your original mortgage with a new one instead of taking out a second mortgage. You’ll access your capital to get cash at closing. You can use this for home improvements. You will have a new balance, payment, interest rate, and terms for your refinanced home loan.

Government Programs for Home Improvement

Some government programs can also assist you in paying for a home remodel. These programs are federally insured so it may be easier for borrowers to qualify for the loan because it reduces the lender’s risk.

Connect with us to know more about the renovation mortgage options. One of the best mortgage brokers in Toronto will help you with the best available options as per your credit profile. We look forward to hearing from you.