Financing renovations on your home. If you’re expecting the renovations to be done in less than four months, my recommendation would be to take the equity out of your home and put it into an amortized mortgage. The interest rates will be lower and you’ll receive all the money at once, while paying your principal and interest payments.
If you’re expecting to do the renovations over a longer period of time–say a year or so, use a secured line of credit to finance the renovations and then when you’re done, lock in that portion of the loan to a fixed- or variable-rate mortgage. With the secured line of credit you only pay for what you need and the payments are interest only.
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© Sandra Lastovic is the Principal Broker with the Mortgage Centre in Guelph. With over 15 years’ experience and holds a M.Sc. from the University of Guelph. She was recently ranked at the top 75 agents in Canada by The Canadian Mortgage Professionals annual survey and 2017 Most Influential Women in the Mortgage Industry. She can be reached at 519-763-3900 x1001 or www.skipthebank.ca™