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Avoid the Renovation Sink Hole

Include your Renovation Costs within your Mortgage.

Finding the right home is not that difficult. But finding the right the decor may call for renovation. Now you can put your renovation costs into your mortgage at the time of purchase. Upgrades such as painting, carpets, windows and even full kitchen or bath renos qualify.

If you found the right home but need to renovate to make it your dream home, contact the team at mimortgage today. To get pre-approved today, through our secure online website or speak to one of our agents at (866) 452-1100.

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Home Renovation Financing Options!

There are many reasons to Renovate!

You may want to save energy (and save on utility bills), to make room for a growing family, to improve safety or increase the resale value of your home, or simply to bring a fresh new look to your home. There are also a number of different ways to finance your renovation. Read on to obtain information for a number of financing options, along with practical advice to consider before starting your renovation project.

 

Before You Begin

 

Whether you intend to finance your renovation yourself or borrow money, you should talk to us before you make firm plans. We can help you understand your options, and advise you on how much you can borrow.  We can even pre-approve you for a loan. This information will help you plan realistically. Use the form provided to contact us.

 

 

Explore Your Options

 

Your own resources: For smaller renovation projects, you may consider self-funding material costs, especially if you plan to do the work yourself.

 

Credit card: Likewise, you can use your credit card to pay for materials for smaller renovations. But be careful not to carry the balance for too long; credit card interest rates can exceed 18%.

 

Personal loan: With a personal loan, you pay regular payments of principal and interest for a set period, typically one to five years. You also have the option of a fixed or variable interest rate for the term of the loan. The interest rate on a personal loan is typically less than that of a credit card. Unlike a line of credit, once you pay off your loan you will have to reapply to borrow any new funds needed.

 

Personal line of credit: This is another popular choice for financing renovations. It is ideal for ongoing or long-term renovations since it lets you access your funds at any time and provides a monthly statement to help track expenses. A line of credit offers lower interest rates than credit cards, and charges interest only on funds used each month. And, as you pay off your balance, you can access remaining funds, up to the line of credit’s limit, without reapplying.

 

Secured lines of credit and home equity loans: These options offer all the advantages of regular lines of credit or loans, but are secured by your home’s equity. They can be very economical, since they offer preferred interest rates, however initial set-up costs including legal and appraisal fees usually apply. Lines of credit and home equity loans are usually limited to 80% of your home’s value. With CMHC insured financing, lenders may offer borrowers who qualify the option of making interest-only payments for the first five or 10 years.

 

Mortgage refinancing: When funding major renovations, refinancing your mortgage lets you spread repayment over a long period at mortgage interest rates, which are usually much lower than credit card or personal loan rates. This type of financing can allow you to borrow up to 80% of your home’s appraised value (less any outstanding mortgage balance). Initial set-up costs including legal and appraisal fees may apply. If you need to tap into more of the equity in your home, loans of up to 90% of your home’s value can also be provided when insured by CMHC Mortgage Loan Insurance.

 

Financing improvements upon-purchase: If you’re planning major improvements for a home you’re about to purchase, it may be advantageous to finance the renovations at the time of purchase by adding their estimated costs to your mortgage. CMHC Mortgage Loan Insurance can help you obtain financing for both the purchase of your home and the renovations — up to 95% of the value after renovations — with a minimum down payment of 5%.

 

Other Considerations and Options

 

Planning for the Unforeseen

 

It’s a good idea to set aside a percentage of your renovation funds to cover items not included in your renovation contract, for things you discover you’d like to add once work is under way, like extra or upgraded features, furniture, appliances and window coverings or for contingency. A separate fund lets you make decisions easily, without having to renegotiate your financial arrangements or reapply for new funds.

 

Grants and Rebates for Energy-Saving Renovations

 

Across Canada, renovation grants and rebates are available from the federal and provincial governments and local utilities, especially for energy-saving renovations. If you qualify, they may help pay for some of your project’s costs.

 

  • CMHC Mortgage Loan Insurance for Energy-Efficient Homes: 10% CMHC mortgage loan insurance premium refund and extended amortization periods without surcharge.
  • ecoENERGY Retrofit — Homes: grants of up to $5,000 to offset the cost of making energy-efficiency improvements.
  • Provincial and Municipal Entities Offering Grants and Incentives
  • Rebates and Incentives for Selected ENERGY STAR® Qualified Products in Canada

 

This content is provided for informative purposes only. It does not constitute or substitute financial or other advice. CMHC assumes no liability in connection with the information provided.

 

This information is from the CMHC website.

 

There is only one solution when you need a mortgage. That’s Mortgage Intelligence!  Serving Durham Region & GTA. Apply now!

Want to know if you have enough Equity to Renovate, Use the handy form below to contact us today.

 

 

 


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10 Easy Ways to Update Your Bathroom!

Make Your Bathroom Revnovation Pay!

When people normally think of updating their bathroom they think of time consuming and costly renovations. While making costly renovation will certainly update your bathroom you do not have to spend that much money to make your bathroom look like a completely different and updated bathroom, by simply making small changes to certain areas in your bathroom you can have a quick and easy style update.

Before you start with updating make sure to de-clutter anything that is old and worn out. Throw out anything that is expired or just taking up space in your cabinets. It is always good to start with a clean slate.

Bathroom Renovation

  1. New Bathroom Accessories – Purchase new accessories such as toilet brush holder, storage bins, soap dishes and toothbrush holders. Choose something out of the ordinary. The clean lines and simplicity of these accessories will add interest without overpowering the space.
  2. Shower Curtain – Choose a pattern that will add visual interest to your space, such as large print (geometric or floral). If you do not like colour try to find something that is just as appealing in black and white to add a clean and classic alternative.
  3. Cabinet Hardware – Unique handles add your own personal touch to your bathroom rather then just the standard metal ones. Glass or acrylic handles can add a touch of class to your cabinets without replaces the whole cabinet.
  4. Bath Mats – Find a mat that is easy to clean.  One that is made from treated wood that can withstand water and dirt. This will bring an element of individuality to your bathroom.
  5. Fresh Towels – This may sound simple but when you buy new towels and hang them in your bathroom they will make a huge difference in the overall appearance. Since towels are used so often they lose their colour and shape rather quickly so replacing them ever so often is a good idea.
  6. Paint Colours – A fresh coat of paint can rejuvenate a space. Since bathrooms are normally smaller in size you do not have to be afraid to use bold colours on your walls. Crisp blues and greens are really good to make the room look fresh and clean.
  7. Paint the Vanity – If you live in an older home your vanities will probably be painted wood vanities with storage. If your budget does not allow you to change the whole vanity, then you can paint it a new colour, something light that will contrast against the bring colour of the walls.
  8. Sophisticated Soaps – The delicate scent of soaps can create a fragrant aroma in the room without being overpowering.
  9. Small Occasional Chair – An occasional chair neatly tucked into a corner is another great way to introduce colour into your space. If the chair has fabric try and make sure they co-ordinates with the shower curtain and paint colours.
  10. Artwork – Create a bold artistic statement by adding an interesting piece of artwork to an otherwise blank wall. Choose one special accent is a great way to tie the entire room together. Something with a graphic pattern that is neutral enough to withstand changing colour schemes.      

This article was revised from yourhome.ca.

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Renovations That Add Value

Not all Renovations are created equal.

The moment the weather breaks, even if it’s just for a day or two, we start thinking about Spring.

At our house Spring means Renovation.Renovation

This year it’s time to paint the exterior surfaces of the house to keep it looking good and to preserve the wood siding.

Owning a home means there’ll always be something that needs updating or replacing choosing the projects that bring in the best rate of return is very important if you only have a set amount to spend.

 Style At Home magazine published a great list of renovation paybacks. Kitchens and baths still top the list but there are many other improvements that not only increase enjoyment but add to over-all value increase.

Before you get started on your “Honey Do”  list this Spring, We hope you’ll have a look at the return on investments and make a wise choice for your renovation dollars.

Here’s the list of returns on renovations from Style at Home.

If your renovation is a major one, talk to us about helping you with the financing. Many homeowners finance a renovation using credit cards and available balances on a line of credit. While this might seem like a great idea, it can actually destroy your credit rating and make it impossible to get a consolidation loan once the work is done.

 Call us first for a Renovation loan. Rates as low as 3.5% are available today! Apply Now.


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Renovation Financing

Is Renovation On Your Mind?

In the past 4 years many changes have occurred in the mortgage industry. So many lending guidelines have restricted how lenders Renovationwill approval a client, how much they are willing to lend based on the value of home last but not least how is a client’s income derived. This has restricted borrowing for renovation

The refinance ceiling on residential homes is now 80% of the value. In other words if your home is worth $200,000 the maximum mortgage amount that you can be approved for at re-finance is $160,000.

Renovation Financing under the new Mortgage rules is quite restricted.

This is where the old adage, “where there’s a will there’s a way” comes into play. Canada’s Mortgage Insurers, CMHC, Genworth and Canada Guaranty have approved a mortgage option called Refinance and Improve.

Using this very simple option allows you to re-finance to the “Improved Value” thus raising the ceiling on the amount of equity you can take from your home to renovate.

We have created a brief video to explain just how it works. Don’t let the tighter mortgage guidelines of the past 4 years stop you form making the improvements that allow you to enjoy your current home even more!

For more information use the form below to contact us about renovation financing