Whether it’s a complete home renovation or a bathroom remodelling project, there are plenty of options available for you when it comes to financing these projects.
Financing home renovations in Calgary is considered an essential aspect of upgrading your quality of life and the curb appeal and value of your home.
We take a look at the process in which you can procure the finances you need for your projects.
The Building Blocks of Home Renovation Finances
You’re going to need to do two things to determine if and how you can acquire financing for your home renovations:
- Decide on what your project is going to be. Are you planning to redesign the whole house, or just a specific room, like the kitchen or basement? Determine what you want to be changed from these rooms, making a list of stuff you would like.
- Crunch the numbers and see what you can afford before acquiring any additional funds. From there, calculate how much your new project will cost you (researching the latest designs and materials) and come up with a solid figure. You should also consider if you are hiring a renovation company or doing the project yourself, as this will impact your budget. We recommend the former.
Note: Set aside some money for unexpected expenses that will arise during the project. That way, you know you’re in a good financial position if it does.
Once you have determined what you want for your home and how much the project will cost, you can find the best route to acquiring these additional funds.
Your Options for Home Renovation Financing
Savings
If you’re a good saver and have all the money already stored away in your bank account, well done! You can use it, or part of it at least, if you have enough money for the project. That way, you don’t need to put yourself in more debt for the house.
Credit Card
You can also use a credit card to cover materials, products and items. You just have to be careful not to carry the balance for too long, as the interest rates might hit you hard.
Personal Loan
With lower interest rates than credit cards, a personal loan is the best case for acquiring funds for renovations. You can repay it regularly for a set period of time, usually between one to five years. It’s probably the better option for financing.
Personal Line of Credit
You might require to use a personal credit line to fund your projects, particularly if they are large ones. You will have to pay interest on the amount you’ve used, but unlike personal loans, you can re-borrow the funds without having to reapply to the bank.
Home Equity Loan/Mortgage Refinancing
You can use the value of your home as funds for the project. It will come with lower interest rates, but that’s because your home’s equity secures them. The same applies to refinancing your home. However, you will have to pay set-up costs for the latter.
As you can see, there are plenty of options available to you to finance your home renovations. Speak to your bank, private lender or broker so you can access the funds you need to transform your home.
Solid Solutions Renovations commits to providing homeowners and developers in Calgary with all their renovation needs. From kitchen renovations to basement developments in Calgary, we’re your one-stop-shop for everything. Our team will work side-by-side with you to ensure that your vision comes to life. We’re open with our processes and communication, and will happily answer any questions or concerns you have. We proudly serve Calgary and surrounding areas, including Airdrie, Chestermere, Cochrane, Okotoks, and more. For home renovations in Calgary, contact Solid Solutions Renovations at 403-477-0987 today.
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