Have the wave of home improvement shows on television inspired you to carry out a home renovation? Whether it’s big or small, an investment project or home extension you’ve been dreaming about for years, the big question is – how are you going to pay for it?
Here are some options to consider:
Extend your mortgage
If you’re planning an extensive home renovation, one of the most common ways to finance your project is to increase your current mortgage. This can be helpful as you spread the cost out over a long period.
A simple and cost-effective option for financing smaller scale renovations. The interest rates on personal loans are generally higher than home loans, but they typically have a fixed interest rate that stays the same for the full term of the loan. This can be useful for budgeting, but the catch is you can’t usually make additional repayments to get ahead and reduce costs.
A convenient and flexible option if you already have a card with a high enough credit limit. However, it might be costly if you don’t pay the debt within the interest free period.
Home equity loan or line of credit
These products enable you to use your home as an asset for additional borrowing. This allows you to borrow money at a lower interest rate compared to a personal loan or credit card and can usually be drawn up to the approved limit at any time.
To find out more about the renovation financing options, be sure to get in touch.
Avoid a home renovation budget blow-out
Setting a budget is essential for successful renovation. Research your costs thoroughly and review your budget weekly to make sure you stay on track.
A great way to save money on your renovation is DIY on easy things like painting, landscaping and other non-structural jobs.
Small changes like changing wall colours, updating light fittings and smart decorating can have just as big an impact as larger scale alterations when taking on a home renovation.