What Are Your Options For Financing Your Home Renovation?

Updating the kitchen, replacing that ugly carpet you’ve always hated with hardwood flooring, transforming the bathrooms: there are many ways to improve your home. When it comes to financing home improvements, there are more options today than ever. Here are some tips for exploring options for financing home renovations.

Prepare an Estimate for Home Renovation Financing

Begin by determining how much money you need to borrow to complete your home renovations. Get an accurate estimate from a reputable contractor, then add 10 percent for surprises. If you plan to do the work yourself, create a detailed list of costs, including materials, permit fees, and equipment rentals. Add 30 percent to the total to give yourself a cushion and leave room for surprises.

Options for Financing Home Renovations

There are many options for financing home renovations; here’s a breakdown of the major ones:

  • Second mortgage – Taking out a second mortgage is a good idea if your current mortgage has a low interest rate.
  • Refinance your mortgage – If your home has appreciated and you can refinance at lower interest rates, this is a good option.
  • Home-equity loan – Offer similar tax benefits compared to conventional mortgages, but without closing costs.
  • Home-equity line of credit – Similar to a home-equity loan, but you draw funds as needed and are charged interest on the amount you use.
  • FHA 203(k) mortgage – These loans are insured by the FHA and make it possible to refinance your first mortgage and combine it with home renovation financing.

Get the Best Interest Rates with a Mortgage Broker

Working with a mortgage broker is a great way to explore options for home renovation financing. They have access to a variety of loan sources so they can match you with the best loan for you at the best interest rates.

At My Mortgage Line we can help you finance your home renovation for the best interest rates in town. Make your renovation dreams become reality today!

My Mortgage Line is a Calgary based mortgage company committed to helping families succeed. We are here to help you find the best mortgage for your situation and lifestyle. Ready to get started? Apply online today, or contact our team!
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