Mortgage Blog
Benefits of Renovation Loans
September 10, 2024 | Posted by: Sarabjit Dhuna
Did you know around 30 to 40 % of homeowners are ready renovate home by 2 years and the budget they are going to average budget around $20k to $40k.
Renovation Loan
It is type of loan that can help the homeowner to fund their home improvement projects. Homeowners can use this loan from minor updates to major structural updates.
Types of Renovation Loans
There are different types of renovation loans that homeowner can access it.
HELOC(Home equity line of credit)
It is line of credit that you can borrow against your available equity at your home. If you want to know more about HELOC then check our blog for HELOC.
Home Equity Loans(2nd or 3rd Mortgage)
You can borrow money against your equity that you have built in your home. It is also called cash-out refinancing loan.
Personal loans
You can get loan for smaller projects with usually high interest rate.
Refinancing
This is loan to replace your current mortgage loan for additional funds.
Government backed Renovation Loan
Canada Housing and mortgage Corporation offer benefits in certain types of loans for renovation.
Benefits of Renovation Loans
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Home renovations loans offer lower interest rate than traditional personal loan.
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You can increase home value and have chance to reduce long term costs.
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Flexibility in home improvements
If you are looking for pre-Construction projects then visit our website Own ontario home for new projects.
