With home price increases over the years, more Canadians are taking advantage of the equity they’ve built up in their homes and using it to renovate. This can make a lot of sense for families who still enjoy the neighbourhood and community they live in but whose homes are showing signs of aging or they simply want to add that dream kitchen they’ve always wanted.
A recent CIBC survey states that 45% of Canadians plan to renovate this year, as many are choosing to stay put and renovate instead of selling their current home and moving to another. Home improvements can also help increase a home’s value and selling price, which will help homeowners if they choose to sell down the road. And homeowners belive that, too, with 86% seeing any renovation as an investment.
More than half of survey respondents said their renovations would be basic maintenance, while 39% each said they would be landscaping or renovating a washroom. As well, here in Alberta, homeowners plan to spend an average of $8,100 on renovations this year, up from $7,400 last year.
There are several ways to fund renovations including using your own savings, accessing existing lines of credit, or even using your credit cards. However, one of the most cost-effective ways is refinancing your existing mortgage or pull some equity out of your home. You might even be able to borrow funds without significantly increasing your mortgage payments or affecting your current cash flow. When you refinance your home, you can gain access up to 80% of the overall equity currently on your home. This can be used towards your renovations and can save you money on high credit debts.
There are also programs that allow you to purchase a home and that include additional financing to pay for needed renovations to make it your dream home.
Whether you plan to renovate this summer or want to buy a home that needs improvements, send us a quick email or give us a call, and let us show you what’s possible.