Home Renovation Loans – How to Finance Your Renovations

Renovating your home can add value to it, increase your enjoyment of it and improve its functionality. However, it can also be expensive. Many Canadians do not have $100,000 lying around to pay for the renovations they desire, so they turn to financing options. These include home improvement loans, credit cards and personal lines of credit. Each one works slightly differently, but there is likely a solution for everyone.Find out more

Can we pay extra amount in home loan?

The most common way to borrow money to finance your home renovation is by using a personal loan. This type of financing is available to most Canadians who have steady employment and good credit. You will typically need to submit documentation such as your identity (passport, driver’s license, social insurance number), proof of income (pay stubs or employment records), bank statements and/or tax documents. You may also need to provide a detailed list of your assets and debts.

Another option is to use a home equity line of credit (HELOC). This revolving line of credit uses your house as collateral, which lowers the risk for lenders. However, it’s important to understand the risks involved with HELOCs, as you could lose your home if you fail to make your payments.

Lastly, you can also qualify for a grant to help with your renovations. These grants can be awarded through private banks, credit unions and other financial institutions. Some of these grants can cover up to 50% of your total renovation costs and can be applied for during the same time as you apply for a mortgage renovation loan or personal renovation credit.