Your home is an asset and an investment. That’s why it’s important to continue adding value to your home, while making it a more comfortable, luxurious place to spend your time. Renovations are one of the best ways to add value to your home. As a homeowner, it’s imperative you stay on top of upgrades and updates to maintain your property’s value.
The good news is, you don’t have to have the cash upfront to carry out your desired renovations. That full kitchen remodel, Smart Home installation, or top-to-bottom dream home renovation is completely do-able — with the right financing options. Keep reading to find the best home renovation financing option for your unique needs.
Borrow against your home’s equity
This is a great option for homeowners who are planning bigger home renovation projects over $25,000. One of the perks of homeownership is the option to take out a Home Equity Line of Credit (HELOC): a source of funds that you can borrow against the available equity of your home, used as collateral for a line of credit. Much like a credit card, as you repay the balance, the available credit on your HELOC goes back up. Borrowing against your home’s equity will allow you to carry out that dream home project while keeping interest costs much lower than other types of loans — making it a cost-conscious choice.
A line of credit or personal loan
Homeowners who are looking to carry out a smaller home renovation project under $25,000 may want to consider taking out a line of credit or a personal loan. Both financing options offer much better interest rates than putting the full renovation cost on a credit card. On top of that, lines of credit come with flexible payment options like interest-only payments. This is also an excellent option if you’re unsure about your renovation timeline, as you’ll have access to the money right away but you won’t begin paying interest until you actually use it.
Use your credit card
Using your credit card is a convenient renovation financing option when you don’t have the cash on-hand, and need to get the job done quickly. The funds are readily available, and you won’t have to go through any extra paperwork or research to carry out your renovation. For example, if you’re a homeowner planning on selling soon, it makes sense to use your credit card to invest in a renovation that will add value to your home — giving you the power to confidently increase your asking price and recuperate your costs soon after.
Credit cards also work well for smaller remodels and technical upgrades. Keep in mind interest rates will be higher than the previous two options, which is why we recommend it for smaller-scale projects.
Renovating or remodeling your property is a big decision. Our experienced team in the Metro Vancouver area is here to guide you through every question and every step with full confidence. Get in touch for a quote, or visit us in our Surrey showroom.