Financing Home Renovations: What Are Your Options?

Whether you’re purchasing your first home or your fifth, one of the best ways to increase your equity is by purchasing a home that needs some TLC. Updating and renovating a home can increase your home’s value far beyond your mortgage. However, many prospective home buyers have a hard time budgeting for a house and a renovation. At OCU, we understand. We offer flexible ways you can finance home renovations to help you increase your home’s equity without overstretching your personal finances. Financing home renovations make it possible for you to mortgage your home, plus improvements. Whether you’re in the process of getting pre-approved for your first mortgage or exploring updates for your current home, keep reading to find out more about how home renovation mortgages from Osoyoos Credit Union can help.  

Financing Home Renovations: How Does it Work?  

Homes aren’t getting any less expensive in the Osoyoos market. Situated in one of the most desirable places in BC, the average home price is expected to keep increasing over time. Whether you’re looking to increase the value of your home before selling it or to increase the value of a home over time, a house renovation loan can make it possible.  

You may be wondering how financing home renovations work. Let’s say you find a home with a price tag of $400,000. It’s a steal at that price and it’s only a few updates away from being your perfect home. By the time you knock out a few walls to achieve an open-space concept, update the kitchen and freshen the whole house up with a fresh coat of paint, you’ll be investing close to $50,000. That’s a fair bit to have on hand, ready to invest in your home.  

Financing home renovations with a PPI-qualifying mortgage from OCU means you can qualify with a down payment of as little of 5% of the home’s purchase plus renovation costs. In this case, the purchase price ($400,000) plus renovation ($50,000) means a 5% down payment of $22,500. The cost of your renovation is added to your mortgage and disbursed into easy monthly payments to be amortized over your mortgage period.  

Read more on our previous post here: Best Home Improvement Loan: Purchase, Plus Improvements!  

Increasing Your Home’s Value with a House Renovation Loan  

Real estate is one of the oldest and best investments you can make. Increasing the value of your home is easy with high-impact renovations to update your home. In addition to updating your home, some updates can help your home run more efficiently, lowering your carrying costs over time.  

Depending on the age of the home you’re purchasing, a few updates to increase your home’s efficiency to lower your monthly expenses include:  

  • Switching out fluorescent bulbs to LEDs 
  • Replacing baseboard heaters with a central air system
  • Replacing drafty windows and doors to keep your home better insulated 

There are also a few fail-proof ways to increase the value of your home aesthetically. Modern, updated homes are moving towards bright, open concepts to make spaces feel bigger and make hosting easier. If you’re purchasing an older home, this may mean taking out that wall separating the kitchen and dining room to make the home feel bigger and more welcoming. The following updates can help increase your home’s value: 

  • Creating bright, open living spaces 
  • Fresh paint 
  • Kitchen updates 
  • Bathroom updates 
  • Updated flooring  

It’s easy for all these renovations to add up. However, a home renovation mortgage can help you transform your current house into the welcoming home you’ve been dreaming of.  

Financing Home Renovations: What Are My Options?  

There are many reasons homeowners apply for a home renovation mortgage. For some, they’re interested in updating the home they’ve lived in for 20+ years to enjoy their space more, or to update before selling. If this sounds like you, you may be interested in refinancing your mortgage to include updates.  For some, a home renovation mortgage means easier access into the market and an easy way to increase their home’s value quickly. Whatever the reason, OCU offers flexible and easy options for home improvement financing. The three most common are:  

  • Home Equity Loans 
  • Line of Credit 
  • Mortgage Refinancing  

Each option has unique benefits that can be customized to fit your financial needs. The mortgage experts at OCU would be happy to work with you to find the best option for you. Your current financial needs, your home, and the extent of the renovation you’re planning on completing are all factors that we’ll consider when helping find the best home improvement loan option.  

Read more on Osoyoos Credit Union Member Benefits here 

Osoyoos Credit Union: Making Dreams of Home Ownership Possible  

At Osoyoos Credit Union, we understand undergoing a large renovation project for your home is a significant process. We’re here to make the home renovation loan process as easy and flexible as possible to fit with your personal needs. We offer a variety of options to help you find your best mortgage rate while achieving your financial goals. 

If you’d like to find out more about how we can help with a home improvement loan, don’t hesitate to contact us! Our mortgage professionals would be happy to help. As a credit union, you know we’re known for giving profits back to our members in the form of higher interest rates for chequings and savings accounts, offering lower fees and better rates on loans and mortgages. 

 Getting started is easy! You can learn more about home renovation loans here and get in touch with us here to book an appointment to discuss the specifics of your financial needs. 

Contact the team at OCU today to get started with financing home renovations.