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Upgrading Your Home

Posted On: 2008-10-20

Need funds for a home improvement? 

Refinancing your mortgage may be your best solution! 

Canadian homeowners are adding to or improving their homes in record numbers these days and this usually represents a significant investment.  Financing such a project can be a challenge.  However, if you’ve built up some equity in your home, refinancing your mortgage may be the best solution to help you find the funds you want when you need them.

What if you already have a mortgage in place?  Well, if your current mortgage loan is charging a higher rate than some of the very attractive interest rates now available, then you should look into the options for refinancing your loan.
This way, you may even be able to fund your home improvement and reduce your ownership costs at the same time!  If your mortgage hasn’t completed its term, your lender may still let you renegotiate a new mortgage now, particularly if the term for the new mortgage is a long one.  It’s a good way for your mortgage lender to lock in your business for a longer period of time, rather than risk losing it when renewal time comes around.  Even if there’s a penalty to get out of an existing mortgage, the penalty usually reduces as you approach your renewal date.  You may find that there is a relatively low cost to renew early, versus waiting until the current term concludes.

If your mortgage is already at an attractive low rate, you may not need to renegotiate.  In a situation like this, it may be in your best interest to take out either a home improvement loan or arrange for a line of credit secured against the value in your property.  Typically, either option will provide funds at a far lower interest rate than unsecured loans or credit card purchases.

Want to know more about financing solutions for your Kelowna real estate needs?  Then, contact Paige and Al.  They’ll be happy to sit down with you to discuss your needs and goals and help you decide on the best way to get there.  You’ll be glad you contacted us first!

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