You never know when you’ll need to finance a renovation project because other unexpected expenses arrive in other areas of your life. If you don’t have savings to spend then you have to find other means of paying the bill. Good thing the following options are available for you:
If you were considering financing your project with a credit card, consider a personal loan instead. Compared to credit cards, personal loans often have lower, fixed (not variable) interest rates that enable you to properly budget your repayment and still leave available credit on your cards for day-to-day conveniences. Not all banks offer personal loans, but there are options online that provide credit-worthy borrowers a fast, easy and automated way to borrow money at rates that can be 20-30% below traditional banks. Source: FoxBusiness
The least expensive way to borrow is with a home equity line of credit. It’s now routine for banks to offer these when you renew your mortgage, says Bettina Schnarr, a certified financial planner in South Surrey, B.C.
“Banks will often ask if you want to add a line of credit for another $50,000, even if you don’t need it right now.” If you’ve already got such an arrangement, that’s likely to be the best way to finance a major reno. Source: CanadianLiving
0% or low interest credit cards
If you have decent credit, you’ll run into offers for 0% interest on credit cards (new credit cards or checks you can use with cards you already have). Credit Karma previously advised us that these offers might be best for projects under $15,000—presumably because it’s (relatively) easy to pay off the loan within the low interest rate offer timeline (usually 12 to 18 months), it’s easy to apply and qualify for, and you don’t risk losing your home on this kind of unsecured loan.
Just make sure you understand the fees and terms of these credit card offers and can fully pay off the debt by the time the offer expires—set up an automatic payment to chip away at it—lest you end up owing a ton of interest on the full amount when the offer expires. Source: LifeHacker
Make sure that you find the best people to help you out with your home renovation. With more than four decades in the business, you know you’ll get your money’s worth with us. Call us today!
Kerrisdale Roofing & Drains
8279 Ross St, Vancouver, BC V5X 4W1