I know I do, and anyone that knows me well, knows that I’m a sucker for a great renovation. You know, the interior renovation that once complete, makes you think it was always meant to be that way, or the exterior renovation that makes you wonder how a house that is 40 years old, can look like it was built last year. In my opinion, those are the best, and the most satisfying renovations in so many ways!

The challenge with such renovations however is that they can be somewhat costly and if you’re like most, you don’t put aside enough money to tackle such a project when the time comes to do it. And that’s where I come in. As a mortgage broker I get the best of both worlds in that not only I can help you arrange the necessary financing for your renovation project, but I also get to feel the satisfaction helping someone on their path to a better home. Heck, I enjoy the renovation process so much, a client might even have trouble keeping me off the crowbar in the demolition phase!

And there’s that word I used above. “Financing”. A single word that can conjure up some negative emotions as we recall the cheesy ads inviting us to borrow for things (generally depreciating assets) that we don’t immediately have the money for. But in my opinion, this is different. What I’m referring to here is the intelligent use of some idle equity to reinvest in, and ideally increase the value of, what is likely your most valuable asset. Not to mention, get even greater enjoyment out of that asset which is almost priceless. If you have owned your home for several years, it is likely that the value of your home has increased quite significantly, and this is where the potential to put that idle equity to good use comes in. Accordingly, there are four potential options we can explore…

Conventional Refinance – Most lenders will allow you to refinance up to 80% of the value of your home.

Reverse Mortgage – I prefer the term “Equity Release” (more on that in another post!) but if you’re 55 years of age or older, you can turn the equity in your home into tax free cash.

Home Equity Line of Credit (HELOC) – You can use this to access the equity in your home and it’s different than a conventional mortgage in that it doesn’t have an amortization period, so you only pay the interest if you use it.

Second Mortgage – If the cost to break your first mortgage is prohibitively high and you would like the money before your existing mortgage renews, perhaps a second mortgage can be the solution.

If you are contemplating a renovation, get in touch with me as I’d love to help you explore your options. And who knows, with the cost of selling, moving, and buying, perhaps staying put and investing funds in your existing home is the way to go!