Home renovations
Use your mortgage to finance your home renovations
Using your mortgage to renovate your home can be a very useful strategy, and we will show you how. This allows you to borrow the cost of renovation and add it to your home price, making it under one easy to manage mortgage payment. There is a little extra work that comes with this, but our experts will show you the way.
What properties are eligible?
- Maximum 4 units, with at least one unit occupied as the principal residence
- New construction or existing properties
Using Your Mortgage for Home Renovations
Our team wants to make sure that you are prepared to reap the benefits of using your mortgage to renovate your home, so we will help you through the process of doing do following the steps below:
Finding a property and/or determining what renovations are needed, and what the approximate associated costs will be.
Get in touch with contract workers and get firm price quotes for the work that needs to be done.
We will have your mortgage approval revised to include the price of the renovations based off the quotes that you gathered from the contractors.
After you take possession of your new home, you can begin the renovations. After the work is done, a bank representative will come out to verify the renovations were completed as stated.
You will then receive the money to pay the contractors after instructions from your lender and can begin to enjoy your newly renovated home.
Benefits of Using Your Mortgage for Renovations
Lower Interest Rates
Compared to personal loans or credit cards, mortgages usually offer lower interest rates, resulting in substantial interest savings.
Increased Home Value
Investing in renovations can substantially increase your home’s value, potentially leading to a higher resale price if you decide to sell in the future.
Tax Benefits
In certain cases, the interest paid on mortgage loans used for home improvements may be tax-deductible, offering potential tax advantages.
Flexible Financing Options
Mortgage products like HELOCs and second mortgages offer versatile funding options, catering to different renovation projects and timelines.
Using your mortgage to finance home renovations can be a strategic move, offering lower interest rates, potential tax benefits, and the opportunity to enhance your home’s value. However, it also introduces increased debt, a long-term financial commitment, and the potential risk of losing your home in case of default. Before embarking on this journey, we will make sure to assess your financial situation, goals, and repayment capacity to ensure that you are able to make these upgrades and sustain them long term. Whether you choose to revamp your living space through your mortgage or explore alternative financing methods, HM Mortgages is here to support you in achieving your homeownership and renovation aspirations.