Have the wave of home improvement shows on television inspired you to plan some renovations?
Whether it’s big or small, an investment project or the 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 renovation, one of the most common ways to finance your project is to increase your current mortgage. This can be advantageous as you spread the cost over a long period.
Personal loan: 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.
Credit card: 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.
Avoid a budget blow-out
Know your budget: Setting a budget is essential for successful renovation. Research your costs thoroughly and review your budget weekly to ensure you stay on track.
Consider DIY: A great way to save money on your renovation is DIY on easy things like painting, landscaping and other non-structural jobs.
Be creative: Small changes like changing wall colours, updating light fittings and smart decorating can have just as big an impact as larger scale alterations.
To find out more about the renovation financing options, be sure to get in touch.
