Are you looking for a mortgage for your home renovation? You have a lot of options for financing your home renovations. Every option has its own pros and cons. To decide which is best for you, you should explore them all. Talk to your lender so they can further explain your options, tell you how much you can borrow and pre-approve your loan. Here are some of the best options on how to raise funds for your home renovation.
Your own savings or a credit card
If you’re doing the work yourself, you may want to pay for the materials for smaller plans on your own. You can also use a credit card to pay for the expenses. You should be careful not to carry the balance for too long. Credit card interest rates can go on the higher side.
Getting a Personal loan
The interest rates of a personal loan are much lower than a credit card. You can repay regularly over a set period, usually 1 to 5 years. You can reapply for another loan if you wish to borrow more once the loan is paid.
Personal line of credit
For ongoing or long-term projects, you can consider the personal line of credit. You can access funds as you need them and you only pay interest on the amount you use. Interest rates for a personal line of credit are more practical than a credit card. A line of credit lets you re-borrow funds, up to the line of credit’s limit, without reapplying, unlike a personal loan.
A secured line of credit and home equity loan
This offer combines all the advantages of regular lines of credit and loans. It comes with preferred interest rates. They are subject to set-up costs including legal expenses because they’re secured by your home’s equity.
The Mortgage refinancing
When looking to complete major renovations, the refinancing can offer some advantages. You may get a better interest rate than on a credit card or loan, but you’ll incur set-up costs. The mortgage refinancing repayment is expanded over a long time period.
Financing upon home purchase
Think about adding the cost to your mortgage if you’re planning major renovations to a home you’re about to buy. You’ll be able to pay a lower interest rate than with a credit card or a personal loan.
If you are you looking for a renovation mortgage connect with us to get help from the best mortgage broker in Toronto. We’ll give you the best available option as per your credit profile. We look forward to seeing you soon.