There are several ways you can finance your home renovation project, or even projects. Most times, taking out a home loan or home equity line of credit will suit your needs the best. But how much should you take out and how much will they cost? What do you need to look for in the process? Let’s take a look at financing your home renovation project.
You can take out a loan to do all kinds of renovation projects on your home. Whether you need to have an updated kitchen, or to create an apartment for a relative to move into, or you just want to add something fun like a swimming pool in the back yard, you’re only limited by your imagination and your budget.
What Needs To Be Done?
To make sure you know exactly how much to take out in a loan, create a list of what it is you want to do in your renovation project. Is it a bathroom, kitchen or basement reno? Then go through and prioritize it in terms of what you need to do versus what you want to do. This way, if you run out of funds or time, you can get the most crucial aspects done first.
Tap Into Your Savings
Next, determine how much you have saved and can put into your renovation up front. The rest will be what you will need to take out in a loan. Just remember, you will have monthly payments that are not currently in your budget, so be sure the loan terms are ones that you can live with and not cause you to worry about your other expenses. You should also compare this to the equity you have in your home. A financial expert can help you with this.
Then you will need to find someone to do the work, unless you plan to do it yourself. There are advantages to both. Doing it yourself makes sense particularly if you are skilled at woodworking or other types of trades. If you decide to go with a renovations contractor, be sure to research their contractor’s license for any liens or unresolved customer issues. Your local contractor’s board will have this information.
Once the work is all done, you can sit back, relax, and enjoy your home renovation for years to come. Give us a call to get the conversation started on your next home renovation in Victoria BC by calling Steve at 778-677-1036.