Home Renovation Mortgage Loan in Mississauga
Sometimes when you purchase a new home, renovations are necessary to add value and to reflect your style. However, buying a home can be an expensive enough purchase as it is, and renovations can be even more costly. Luckily, there are options available for homeowners who are looking to renovate their homes with renovation loans to help cover added costs.
What types of renovation loans are there?
Every renovation is unique, so your loan will depend on the improvements you are planning. In general, these loans are well-suited for a single time; if you need to build a new garage or add a room to your home. However, some people do have ongoing projects, like kitchen and bathroom renovations, over a few years, and a line of credit would be a better fit for those types of projects.
Should I get a loan for my renovation?
If you are wondering about a personal loan, these funds will allow you to make a large purchase at a lower interest rate. It will also give you a specific schedule to pay the loan. One benefit of a renovation loan is that you can use your home’s equity as collateral, which will help you acquire a lower interest rate. Loans come in so many variations that you can even work with a lender to create a loan at a specific interest rate at either a flexible or variable rate, and a repayment plan that best suits you.
Should I get a line of credit for my renovation?
As previously mentioned, if you are planning for ongoing renovation plans, a personal line of credit would be more suitable for your project. A line of credit is like a credit card in the sense that once you can access the funds, you don’t have to apply again to use them. A line of credit also has a lower interest rate than a credit card.
A line of credit offers you more solutions because it allows you to use what you need for the specification of a project, and you’ll feel relief in knowing that you have the funds available to you when you need them. You can take out money from a bank machine if you have a line of credit, offering convenient and flexible options.
How to Utilize Your Renovation Loan
Now that you have an idea of how the renovation loan process works, you’ll want to use these funds to the best of your capabilities. Once you have secured financing and you move on to the renovation stage, specific updates will improve your home’s appearance, as well as offer resale value.
Many people opt to update their bathrooms. Contemporary bathrooms are more appealing, and you can expect to have an ROI of 56% or more compared to other renovations.
The kitchen is an essential component of any home, and one that is too small or has a tricky layout will need to be improved. A renovated kitchen can provide an ROI of 44% or more.
Replacing your floors is also an excellent option. Generally, hardwood floors are a nice selling feature in a home. If your home already has them, then you can even have them refinished.
Some other beneficial renovations that can add value to your home include adding to your home’s curb appeal with beautiful landscaping, putting in a swimming pool as an added luxury, or implementing skylights to brighten a home.
Learn More About Renovation Loans
If renovating your new home is a must, then a renovation loan could be an attractive option for your investment. You don’t have to delay in your renovations — get in touch with the professional team at sMp Mortgages, and we will work with you directly to come up with solutions for your improvement project.
Feel free to reach out to us at 1-844-MY-PLAN or fill out the contact form on our website. You can provide us with your detailed renovation plans, and we can determine how we can work together to enhance your investment. Get in touch with us today!