Using home equity loans for renovation projects comes with a ton of advantages. Do you plan on selling your home in the future or Is your family growing out of your current home? Then you may have thought about getting a home equity loan for some renovation projects. One of the best solutions to obtaining a loan for your home renovation is by obtaining a home equity loan.
In this article, we’ll discuss the advantages of taking out home equity loans for your home renovations and if it’s the best solution for you.
Using Home Equity Loan for Home Renovations
Taking out a home equity loan in Canada to help you with home renovations has benefits. First, it’s a smart investment especially when your intention is to upgrade and sell your home. Remember that renovated homes will sell well in the market.
With a home equity loan, you can fund big renovation projects too. Also, you get predictable fixed monthly payments which is an advantage so you can budget ahead. It’s a good return on investment as it increases the value of your home. Should you sell it in the future, you would be able to recover the money spent for renovation and then more.
Also, home equity loans have lower interest rates compared to using your credit card or taking out a personal loan. You are able to borrow a bigger amount of money too, compared to the amount you can acquire with a personal loan.
Maximizing your Home Equity Loan
It is important to make the most of your home equity loan. Below are a few tips that can help:
Set a Budget
Before applying for a loan, determine how much your home renovation project will cost you. As much as possible, speak with a professional to help you assess what materials are needed and how much it would cost you to fund the entire project. Obtain estimates and discuss everything with your contractor so you are able to determine a realistic budget. Also, consider adding about 15% to the estimate, just in case you’ll need more funds to complete the home renovation.
Find a Good Contractor
When doing home renovations, it’s always best to work with an experienced contractor to ensure that the job is carried out well. Keep in mind that good renovations can increase the value of your home. Take advantage of this opportunity so you can apply for another mortgage in the future and your home will have a greater value.
Work With an Experienced Mortgage Broker
When applying for your home equity loan, it’s crucial to work with a mortgage broker who knows about the industry and who can give you the best offer. This is where we can come in to point you in the right direction. Our team of experts at Lend Today can help you obtain the best terms for your home equity loan. We can also get approvals fast so you can get started working on your home renovation project.
Is a Home Equity Loan the Best Solution?
There are many ways to fund your home renovation projects. Below are your options to keep your remodeling project up and running.
Secured Line of Credit – With this type of credit, you can access renovation funds at any time. This is similar to personal lines of credit but it’s secured by your home equity. One advantage of this is you can acquire a loan with low-interest rates. When you work with us, you have the option to access up to 80% of your equity to use for your home renovations. No need to worry if you have bad credit or a bank turned down your application. With our assistance, we can help you obtain a home equity loan for your home renovations.
Second Mortgage – This alternative allows you to obtain the loan from your home’s equity. With a second mortgage, your home will be the collateral. Your lender will give you a lump sum of money to help you complete your home remodeling. The good thing about a second mortgage is you can spread the repayments over longer periods and the interest rates are lower compared to credit card payments. Work with us so you can borrow up to 80% of your home equity to be used for renovations.
Your Savings – If you don’t want to incur any debt, another option is to save money for your home renovations. Unless you already have enough funds saved, it may take a while for you to secure all the funds. It also depends on how large your project is.
Credit Card – Another way is to buy all the materials needed using your credit card. Be careful about using this though as credit cards have hidden fees especially if you are not able to make the monthly payments. Should you decide to use a credit card for your home renovation, make sure that you pay all your dues on time. Otherwise, your credit score will be affected.
Renovations using the equity in your home
Home Equity Loan – This is a good option for your home renovations. With our help, we can let you obtain up to 80 percent of your home equity to be used for renovations. Don’t worry if you are denied by banks; we have partnered with several private lenders who can help you finance your home renovations.
Heloc – This works similarly to a standard line of credit. You can access up to 80% of your home equity. One advantage about taking HELOC is it allows you to free up a good amount of equity for your home renovations.
If you have a bigger renovation project, consider applying for a home equity loan to obtain bigger funds to complete your home renovation. Keep in mind that personal loans and credit cards have higher interest rates so you may steer clear of them. Talk to us so we can provide you with the best solution for your needs.
Get in Touch with Lend Today
Are you planning to renovate your home in Canada? Do not hesitate to contact us so we can assist you with your home equity loan. Our team will be more than happy to understand your financial situation, educate you about the process and provide you with the best solutions to suit your needs. Apply Today or Gives us a call today at 1-855-242-7732.