Do you want to renovate your house? Expand it further? The improvement?
More and more Canadians want to make improvements to their homes. Whether it’s renovating a bathroom or basement, adding a garage or installing a renewable energy supply, Canadians are spending a lot more to make their homes look better, more energy efficient, more comfortable and more environmentally conscious. The question is: how can you find funding for renovations or home improvements?
Well, the first thing people do is go directly to home improvement centers like Home Depot or IKEA. What people do not always realize is that despite the excellent quality of the products these stores have to offer, these products do not compare to the lending rates of financial institutions. The problem when looking for financing from a retail store or home improvement store is that these retailers are competitive only in sales, not in loans! Borrowing from an unconventional source means higher annual rates as well as higher monthly payments. So, what are the options you have left?
Home Equity Credit Line of Credit
You can take advantage of your home equity to earn a home equity line of credit. This line of credit is simply a tool that allows you to withdraw money and repay the amounts periodically until the end of your term. The fact that this home equity line of credit is a loan against your home, you can get a large loan, which should cover all of your renovation needs. This option is advantageous because Green-Touch org loan is usually provided with a low-interest rate.
A Second Rank Mortgage
If the home equity line of credit is not the right option for you, you should consider the option of a second mortgage to cover the financing requirements for your renovations. A second mortgage is a mortgage that is in second priority in the event of default, which means that your first mortgage lender must be the first to be reimbursed in the event of default. This implies that second mortgages are interest rates that are a bit higher than those of a first mortgage since the lender takes a greater risk. However, you will still benefit from rates that are much lower than what a retail store can offer you, so this option is highly recommended.
You can refinance your current mortgage
If you’ve had your mortgage for a few years now, it might be a good idea to refinance it and take advantage of the current mortgage rates that are exceptionally low. You’ll be able to tap into a portion of your home equity to get the money you need to renovate, and you’ll save interest at the same time.