Mortgage refinancing may be a good option if you want to undertake major renovation projects that you keep postponing because of financial reasons. Waiting to do work on your house for financial reasons can soon turn into a vicious circle because while you are waiting to save the money you need, the cost of labor and materials keep going up! Refinancing your property could give you the means to start your renovation projects today so you can reap the benefits longer.
There are several reasons why homeowners may want to renovate. Some simply need a change while others must renovate for safety reasons and to protect their investment (e.g., a leaky roof or a flooded basement).
In general, renovation projects are divided into three categories: lifestyle, thermal efficiency improvement, and maintenance or repair.
A successful renovation project may be a dream come true, but without proper preparation and supervision this dream can soon turn into a nightmare. Before picking up your tools, make sure to get all the information you need. Ask your contractor’s previous clients for recommendations and check if any complaint has been filed against him/her to make sure you are in good hands. Call your local authorities to know what by-laws you are subject to and ask for the necessary permits for your renovation. Ask friends and neighbours who have done some renovations for advice. Use all the sources of information available and remember the good carpenter’s motto: measure twice, cut once. Mistakes made on paper are neither costly nor hard to correct whereas those made on the jobsite are.
Thermal-efficiency improvement projects are normally carried out on the envelope of the house or its mechanical systems – e.g., improving insulation, replacing your heating system or installing new siding. These renovations will help you save on energy costs on the long term.
As for maintenance and repair projects – caulking the windows, repairing the roof or replacing the gutters, – they protect the investment you made in your house. They are therefore not only necessary but wise because they will pay off on the long term.
As for cosmetic work, it is a luxury that may seem necessary – you can’t stand the sight of those old white melamine cabinets – but you must always keep in mind that a cosmetic renovation is always a bonus, not a must. It simply allows you to enjoy your home a little more.
So before you start any renovation project, ask yourself the following questions to see if it’s really worth it:
Normally, the loan-value ratio must not exceed 80% for owner-occupied properties with 1 to 4 apartments. When meeting with your Multi-Prêts MR mortgage financing advisor, he/she will determine your borrowing capacity with you according to several factors: repayment capacity, total value of the project, etc. This way, you will have all the necessary information to prepare your renovation project. And when you are finally ready to hammer-in that first nail, your Multi-Prêts MR advisor will be there to help you get the best conditions for your loan.
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