There are a variety of ways to invest in your home and finance a renovation but maybe there are a few ways that you have not thought of.
1) Home Equity Line of Credit (HELOC)
One of the most popular ways to finance a reno is to use the equity in your home to get a line of credit. With interest rates at record lows, this can be a great way to create value in your home long-term, while minimizing interest costs.
2) Traditional Bank Loan
Most Canadian banks offer home renovation loans that are straightforward to apply for and have a fast turnaround time for releasing funds. Talk to your bank about their options which may not be advertised on their website.
3) Adding it to your Mortgage
It’s possible to simply add your renovation costs to your mortgage. There are a number of considerations to be aware of (like the fact that appliance costs can not be included) and you can read more on the CMHC website.
4) Alternative Lender
There are a variety of alternative lenders like Alpine Credits who offer loans that are typically at higher interest rates than the banks, however, with not as many restrictions. This method has been popular with flippers who may mot qualify for traditional financing.
5) Credit Card
Yes, you can finance smaller home renovation projects with a credit card but with near 20% interest rates, most of our customers explore other options first.
6) Cash (or Bitcoin)
Do you have a wad of $100 bills under your mattress? Does anybody do that anymore? Perhaps you have made a small fortune trading Bitcoin and would like to use those. That being said, even though cash is legal tender and Bitcoins are awesome, but we would prefer a certified cheque.
7) A loan from a family member
It might be time to hit your parents up for your dream kitchen or bathroom reno or perhaps you could ask for it as a wedding gift. Planning for a new baby? Sometimes family members can help but often they have strings attached and we will stay out of the dinner table discussions.
8) Financing with Blue Ladder
Coming Soon! We are working with Financeit on a program that will allow us to provide attractive financing options directly to our customers. If this is of interest to you, please let us know when you contact us.
