Renovation Financing Mortgages
Planning a renovation on your Comox Valley home?
Mortgage Financing to Include Renovation Work
Don’t think you can afford the dream kitchen that you want in your new Courtenay home? Want to install energy efficient beautiful windows, so you can enjoy views of the Comox Harbour with breakfast? Or maybe you want to update your home’s old central heating system?
Home renovations and upgrades can have many benefits, including enhancing your quality of life, improving the energy efficiency of your home (saving you money long term), and increasing the resale value of your home.
Did you know that you can bundle the cost of renovation work with your home mortgage? With mortgage rates still incredibly low, you might be surprised what you can afford right now.
Refinancing Existing Mortgage to Include Renovations
In the past, home owners who wanted to make renovations to their home would often finance their home improvement projects using either a personal loan, credit card, or second mortgage on their home. But with these options all having much higher interest rates (credit cards exceeding 18%) than the current mortgage rates, many Comox Valley home owners are now choosing to re-finance their mortgage; increasing their mortgage principal to include renovation costs. The ability to pay off a major
renovation over a long period of time at today’s mortgage rates make refinancing your mortgage an attractive option. You need some equity in your home.
You may even find that due to rates lower than what you have now, the savings on interest allow you to make comparable payments! If there isn’t a significant difference in rates, bumping up the amortization period of your mortgage is another option to keep your payments the same. Don’t forget that mortgages also have more flexible repayment choices than other financing options.
Financing Renovations with Purchase
Shopping for a dream home in the beautiful Comox Valley? Often when shopping for a new home, we find the perfect home but it needs upgrades or improvements immediately. It is also possible to bundle renovation work into your mortgage when purchasing! These are the steps you would take:
- Determine the cost of the renovation work.
- Get the property appraised “as is” and its estimated value after the renovation work is done.
- Finalize the mortgage to include the cost of the renovations.
- Finish the renovation work.
- Funds for renovation work are released by the solicitor.
If you live in Courtenay, Comox, or Cumberland, make an appointment with us to learn more about Renovation Financing to see if it is a good fit for you!