Maxium Dsouza – Mortgage Broker Can Help Your Home Renovation Dreams Come True With A Quick And Easy Home Renovation Loan!
Whether you are interested in renovating your home to update it’s look, expanding your home by adding an additional section to it, or improving your home for the purpose of continuing to live in it, rent it out, or sell it, Maxium has you covered financially!
If you are like most Canadians, you might not have enough money saved up to pay for all of the renovations yourself. Luckily Maxium is here to help by offering you a wide range of financing options to help you finance your renovation project at an affordable rate.
He can help you find the right financing solution to finance all of your renovation costs including renovating a bathroom, renovating a basement, adding side or rear extension to your home, adding a garage, refinishing the exterior of your home, repairing damages, or for any other renovation need that you might have. Since renovations can be very costly and sometimes required unexpectedly, it can be hard to save up enough money to cover the costs.
Here are a few financing options that Maxium can help you with!
How Can I Finance My Home Renovation?
Many people think that going to a home renovation centre such as Home Depot or IKEA and applying for their store credit card is a good way to pay for their home renovations. The reality is that many of those store credit cards come with interest rates that are significantly higher than those of more traditional financial lending institutions. Fortunately, Maxium has better options for your that can help make paying for your home renovations easier and less expensive.
A Home Equity Line Of Credit (HELOC)
If you have enough equity in your home then you can leverage that equity in order to obtain a home equity line of credit, commonly known as a HELOC. A HELOC is a great option if you plan on pulling money in and out from your credit line. The more equity that you have available in your home, the larger the HELOC loan you can be approved for. If you have enough equity in your home, then you might be able to get a large enough HELOC to cover the costs of all of your renovations. A HELOC is a good option because of the low interest rates that are currently available to borrowers. A HELOC from a bank can start as low as 3% provided that you qualify for that rate.
A Home Equity Loan Or Second Mortgage
With today’s increasingly strict bank rules and mortgage stress test that banks have to follow, it has become increasingly difficult to qualify for a HELOC at a chartered bank. If you need the money quickly, or if your bank turns you down, then you can always apply for a home equity loan or second mortgage. Though the second mortgage rates tend to be higher than a HELOC from a bank, you will find it much easier to qualify for a higher loan amount and get approved with much less hassle and stress.
Even though the rates tend to be higher than the ones you might get through a HELOC at a bank, second mortgage rates and home equity loan rates are still much lower than the interest rates you would get through a store credit card.
Refinance Your Current Mortgage
Another option for financing your home renovation is to refinance your entire current mortgage for a higher amount at a lower interest rate than a HELOC or a second mortgage. This can be a great option if you are several years into your current mortgage or if the value of your home has increased since you took out your current mortgage.
A Draw Mortgage
Although this option is more popular among larger renovation or construction projects, a draw mortgage can be used as a form of renovation loan. If you qualify for a draw mortgage, your funds will be advanced to you in intervals based on completing various predetermined milestones throughout the renovation project. This helps reduce the risk to the lender as they are only lending money as it is needed and as previous renovation steps are completed.
In some cases, when the renovations are substantial enough and are expected to add significant value to the home, some lenders will approve you for a draw mortgage that exceeds 100% of your home’s current value.
Maxium can help you make the right and most economical decision base on your current financial situation and your renovation needs.