Three ways to finance your spring renovation project
Spring is a great time to update and renovate your home, especially if you are looking to maximize your outdoor spaces.
According to Jessica Blaney, a mortgage broker at trusted Home Trust partner MMG Mortgages, wanting to be outside as the weather warms “has made landscaping and outdoor living space updates among the season’s most popular renovation projects.”
“A lot of people start to look at the outside of their home in springtime and want to spruce it up a bit,” she says.
How much does the average home renovation project cost?
In a survey conducted in 2021, online home service marketplace HomeStars found that Canadians spent an average of $10,860 on home renovations – $4,770 of which was spent on renovating outdoor spaces.
The survey also revealed that residents in Ontario spent the most on renovations, with an average spend of $11,560. Meanwhile, Saskatchewan and Manitoba tied at an average of $10,410, and British Columbia came in with an average of $10,250.
Below, we look through some options to help you pay for your renovation project this spring.
1. Tap into your savings.
If you have some savings on hand, taking on small projects yourself is an affordable way to kickstart your home renovation project.
“I’d recommend looking at where the best value will be for the dollars you want to spend,” says Blaney. “For example, painting or staining exterior trims or fences yourself is always a relatively affordable touch and can make a big difference in the look of the exterior.”
2. Refinance your existing mortgage.
If your home loan is up for renewal, one good way to obtain financing for larger renovation projects is by refinancing your mortgage – essentially exchanging your existing mortgage for a new arrangement.
A potential benefit of funding your renovation project with a mortgage refinance is the ability to spread out repayments over a longer period. Just remember that you may have to pay penalty fees if you opt to refinance in the middle of your mortgage term.
3. Secure a home equity line of credit.
Another way to finance your spring renovation project is to apply for a revolving loan that is secured against the equity you have on your home, known as a home equity line of credit (HELOC).
According to Blaney, funding your renovation project with a HELOC is a good option if you have enough equity in the home.
And as an alternative to the standard HELOC, Home Trust offers the Equityline Visa, which is a credit card secured by a mortgage against your property that offers competitive rates and convenient access – an ideal way to finance your renovation project.
How can a mortgage broker help with your spring renovation project?
If you need help financing your spring renovation project, a skilled mortgage broker will be able to outline options around your unique financial circumstances.
“We can provide tailored solutions to the homeowner depending on their needs, financial situation and renovation project,” says Blaney. “From start to finish, a mortgage broker will work with the homeowner to provide options and ensure that the financing is in place for when the funds are needed.”
And at Home Trust, we only work with broker partners who work hard to understand your needs. Learn more about what else is possible when you say “yes” to working with our broker partners with our interactive road map.
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