Posted: 2 Dec '19

What Are Your Options for Home Renovation Loans?

Renovations improve the appearance of your home, making it more desirable to live in. A home renovation also increases the resale value and equity in your home. However, renovations may cost thousands of dollars. A home renovation loan can help cover the expenses.

Types of Home Renovation Loans

1. Loans

You can use the equity in your home as collateral to secure your home renovation loan. Refinancing your mortgage can allow you to access the funds needed for your home renovation project. Loans also provide flexible fixed and adjustable interest rates. You and your lender can agree on a convenient loan repayment plan.

2. Line of Credit

A line of credit is similar to having a credit card. Once you have access to the funds, you do not have to reapply each time you need to use them. For this reason, a personal line of credit is convenient for ongoing home renovations.

You can use your home as collateral to secure a line of credit (HELOC) and lower your interest rate. This is done by refinancing your existing mortgage. Contact a broker to see if this is an option for you.

Maximizing Your Loan

Renovating your home should boost your home's resale value. Different renovation will give you different bang for your buck. Consider the following improvements to your home to increase your comfort and the home’s value.

  • Update The Bathrooms: Remodeled bathrooms can give 56% higher return on investment than other renovations. Give your bathrooms new contemporary fixtures, additional cabinet space, mirrors, low flush toilets, fresh paint, and new tiles.
  • Expand the Kitchen: If you have a small kitchen, open it up to give it more space. Invest in new cabinets and update the appliances. Ensure the new layout makes the kitchen more efficient. The return on investment from a kitchen renovation is 44% higher than average home improvements.
  • Replace Your Floors: New flooring is a significant selling point for homes. Choose a colour and style that can brighten up your living space, but is also durable

Other renovations can also add value to your home, including a fresh coat of paint.

Applying for a Home Renovation Loan

Renovating your home will improve its curb appeal and increase its value. If you are looking for home renovation loans in Edmonton, Dominion Lending Centres will assist you. For more information, contact us today.

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