Is lack of finances holding you back from carrying out your home renovation? If yes, then this doesn’t have to happen to you. Fortunately, there are several financing options available to meet your home renovation needs. Given below are some of the most common ways you can avail funding for your home renovation project.
1. Savings or a Credit Card
If your home renovation project is small, then consider paying for it yourself. Use your savings or credit card to fund your labour and material expenses. But make sure you do not exhaust all your savings. Keep aside some money for unexpected expenses. However, if you are using your credit card for financing, be aware of its high-interest rate and try paying off the pending amount as soon as possible.
2. Personal Loan
A personal loan benefits you with a lower interest rate as compared to a credit card. Also, it has short-repayment options. After completing your personal loan, you are eligible to apply for it again if there is a need for more funds.
3. Personal Line of Credit
If your home renovation process is ongoing and will continue for a long, make Line of Credit your go-to option for financing. With Line of Credit, you can use funds as and when needed, and you will pay interest only on the amount you use. Thus, this financing option saves you from paying unnecessary interest on the whole loan amount. This option also provides you with the flexibility of using funds throughout the renovation process.
4. Secured Line of Credit and Home Equity Loan
These loans provide you similar benefits like personal Line of Credits and other loan types. But the major difference is that these loans require you to pledge equity of your home as collateral. Also, these loans attract some legal charges.
5. Mortgage Refinancing
If your renovation project is expensive and requires a considerable investment, then go for mortgage refinancing. This particular financing option provides you access to better interest rates and long term flexible repayment options. However, these loans are subject to loan set-up costs.
6. Financing Upon Home Purchase
If you want funds for the house’s renovation, you are about to purchase, consider financing your home purchase. This will cost you a lower interest than on credit card or other loan types.
7. Grant and Rebate on Energy Efficiency Renovation
If you plan to renovate your home to boost its energy efficiency, you are eligible for receiving grants or rebates from Federal, provincial, or municipal governments. To support this, many local utilities have also come forward. They also reward homeowners with a refund on energy-efficient home renovation financing.
8. Grants for Seniors
Seniors citizens are also eligible to avail of grants on their home renovation projects. These programs are aimed to help seniors improve the accessibility, safety, and energy efficiency of their homes.
Don’t let your ageing home lose its appeal. Opt for any of the financing options to fund your home renovation needs. If you want to efficiently assess your finance options for home renovation and need guidance, contact the right property financing company.
MTL GROUP is a property management and financing company, operating in the Greater Montreal area in Quebec. Our professionals are just a phone call away to assist you with your property management and financing needs.