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Home Renovation Financing

Since your home is likely your most important investment, renovations are a great way to increase your property value and also make your daily living more comfortable.

There are financing options available to homeowners. For many Canadians, your house is your prime investment; you can turn your home's increased value into money you can use to improve your life.

For financing questions, please contact our representative.

Simply Group Financial

iFinance Home Improvement

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Home Renovation Financing Options by CMHC

There are many different reasons to renovate a home: 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 a financial advisor and to your lender before you make firm plans. They can help you understand your options, and advise you on how much you can borrow and even pre-approve you for a loan. This information will help you plan realistically. If you have explored the options below, and feel you want to talk to HomeReno’s financial representative about arranging for a loan to cover your renovations, 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.

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.

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.

Price Guarantee!

HomeReno Direct is so confident in our best price offer that we guarantee that on renovation projects with identical specifications, product quality levels, fit and finish, services, & guarantees we will match a competitor’s quote. Our Price Guarantee applies to the total overall cost of the project and not to individual items.

Guarantee applies to other quotations that have been received from professional renovators who are active members of the recognized RenoMark/ BILD Associations.

• We will help you get the best design options.
• Show you inspiring completed renovation projects by HomeReno Direct!
• Help you find the best renovation that will fit your budget!
• Our renovations are backed by 2 year guarantee on services, to give you peace of mind.
• Protect you with liability Insurance of $5 Million to give you a peace of mind.
• We offer you $ 100,000 Performance Guarantee, to insure that you will get what you agreed on.
• Help you design your own cabinets, in-house custom cabinets manufacturing
• We are Mississauga’s most trusted name in the renovation business and have a reputation for outstanding quality work.
• Start your renovation project with 10% down, or finance your renovations and pay monthly payment as low as $49.00 a month.

Quotation

A breakdown

It provides detailed break-down of the amount it will cost so you'll know what you're paying for. Make sure you review the quotation and negotiate your renovation wish list.

Scope of work

This is important because you'll want to know what kind of work is going to take place in your home.

Materials & Dimensions

A list of all materials to be used, from Granite for your kitchen counter-top, bathroom finishing, carpentry work, flooring, paint are just some of things will be listed in your quotation.
This is to protect both parties so there will not be any undue misunderstandings later on.

Payment Terms

Start your renovation with 10% down, that’s all you should pay upfront, more than that you should be worried.  We will not request more than 10% down. Also we will set up a progressive schedule, because this will ensure that work on your home is completed in stages and you can pay once each stage has been completed

Project Manager

You've done your research and the quotation looks perfect. Time to meet your project manger before the starting date, to review and discuss your renovation project.