From replacing the countertops in your kitchen and bathrooms to completely revamping your home’s exterior – the options for renovating your home are almost endless. Your renovations can also be as luxurious and comprehensive as you can imagine. However, as your list of wants grows, so will the budget required to bring your vision to life. Figuring out how to finance a home renovation is a common source of stress for a lot of homeowners. Luckily, there are a number of financing options available for your home renovation project. Here are a few you may want to consider:
Personal savings and credit cards
Using your personal savings is probably one of the easier ways to finance your home renovation. If you’re embarking on a small renovation project such as replacing light fixtures, and carrying out the renovations yourself, this is probably your best financing option. You can set aside a little money each month for a period of time to raise funds for small remodels. This fund should be enough to cover the materials and tools necessary for your home reno. It’s also a good idea to set some money aside for unexpected costs and circumstances. Using a credit card is also a good option when it comes to small reno projects, just avoid carrying the balance on your card for too long to avoid paying a high interest.
Renovation Loans
Renovation loans are another great option for financing your home reno. If your renovation is going to end up costing thousands of dollars, a renovation loan is the best way to cover the expenses. Generally, the types of home renovation loans available include:
1. Personal loan: Personal loans provided by banking institutions provide you with the funds to make large purchases required for your home reno. These loans typically have lower interest rates than credit cards and a set time frame, typically 1-5 years, in which you’re required to pay off the loan.
2. Home-equity loan: Home equity loans offer pretty similar tax benefits in comparison to conventional mortgages. The only exception is the closing costs. When you’re approved for a home equity loan, you get the lump sum up front and pay it back at fixed interest rate.
3. Home-equity line of credit: Lines of credit are very similar to credit cards – you only have to apply once, and have continuous access to a set amount of money. When using a line of credit, you have the freedom to withdraw money whenever you feel necessary, and you’re only charged interest on the amount you use. Fees and interest rates associated with lines of credit vary greatly from institution to institution. If you’re considering a line of credit, talk to professionals and weigh your options carefully to get the best deal. Unlike credit cards, home equity loans and lines of credit typically offer the lowest interest rates as the loan is secured by the equity in your home.
Most banks offer different types of renovation loans, so you should be able to sit down with a professional in your institution of choice to go over their services, and decide which is best for you. Another thing to note is that some banks offer fixed home equity loans with increasing limits on the line of credit as you continue to pay down the fixed equity portion of the mortgage. This combines the best of both options and let’s you pay interest only on the amount you need to borrow — only when you need to borrow it.
With a fixed loan you start paying interest & principle on the full amount right away, regardless of when you actually need the money.
Mortgage refinancing
When you refinance your mortgage, you’re essentially replacing your current home loan with another one governed by different terms. Refinancing your mortgage is a good option if your home has increased in value and you’re able to get a lower interest rate. This option can free up some cash for homeowners through lower monthly mortgage payments.
For more helpful information on financing options for your home reno visit the CMHC website.
Thinking of renovating your home? Get in touch with us today!
With each passing year, technology becomes a bigger part of our lives and now it’s making its way into our homes. Recent improvements in smart home technology has made it possible for homeowners to enjoy their spaces, be eco-friendly, and feel more secure than ever. Home automation is one of the perks of bringing tech into your home. It has the ability to provide convenience and simplicity to just about any aspect of your home life.
What is home automation?
Home automation is the use of technology to control or customize the way various parts of your home function. You could automate everything from your lights and music to more crucial functions in your home such as surveillance. Here’s a quick look at some simple and awesome ways you could incorporate it into your home.
Lighting
Lighting is arguably the most common use of automation ever since tech started making its way into our homes. We’ve rapidly seen a transition from ordinary incandescent bulbs to the use of LED bulbs and smart lighting. Previously, smart lighting technology would have to be incorporated into a new home during the building process, but nowadays lighting control systems can be installed in already existing homes. Automating the lighting in your home allows you to easily control the mood in your space throughout the day. With the help of remote controls, motion detectors and touchscreens, homeowners are able to dynamically control both interior and exterior lighting systems. Improvements in lighting technology have also made it possible to create lighting profiles for different parts of your home, and program your lights to turn on and off at specific times of the day.
HVAC
Probably the biggest cause of a high energy bill is an inefficient HVAC system. Often times homeowners forget to adjust their thermostat or turn off the air conditioner before they leave the house. Luckily, smart HVAC systems make it easy to control the temperature and air in your home. With the help of an automated system, you can program your air conditioner and thermostat to shut off and on at different times of the day. You can also control your home’s temperature with the help of smart gadgets. These gadgets use sensor technology to collect useful information like your home’s temperature, or how long it takes for your space to heat up or cool down. They prevent your home’s HVAC system from running longer than it needs to. Smart HVAC systems help create an optimal atmosphere in your home and could save you tons of money in the long run!
Surveillance
Perhaps the most important and beneficial use of home automation is increasing the safety and security of your space and family. Automated security systems provide more intelligent surveillance and are far more protective than traditional surveillance. Smart surveillance can even be integrated with the devices you currently use, such as your phone or laptop. With a smart security system, you can view footage from your security cameras remotely, with any device of your choice, as long as you have access to the internet. This makes securing your home a convenient and easy process. You can also program your doors to lock/unlock automatically when you leave or arrive, or even make use of motion sensors which detect movement in your home when you’re not around. For the safety conscious homeowner, smart surveillance systems make it easy to increase the security of your home.
Thinking of introducing smart home technology into your space? Get in touch with us today!
Socials