Frequently Asked Questions

• Which home improvements are worthwhile to invest in?
  Energy efficient upgrades that boost comfort, cut costs, and reduce environmental impact.  For example, new windows regulate indoor temperatures which reduces the load on heating and cooling systems, and that leads to energy savings.  LED lights reduce energy consumption which can significantly lower utility bills while boosting home energy savings. Solar panels: generate clean energy for consumption, decreasing your reliance on traditional energy sources.  Updating kitchens and bathrooms can deliver significant returns on investment. A well-executed kitchen remodel often recoups its costs entirely and still boosts your property’s resale value.  Home repairs that provide protection and preservation. Promptly addressing issues like roof leaks, appliance breakdowns or heating issues is essential to prevent turning minor inconveniences into costly repairs  Home extensions improve your daily life and increase your home’s resale value.  Square footage is a key factor influencing a home’s value.
• Who offers home improvement loan options for Canadian homeowners?
  • Spring Financial
  • CIBC Home Improvement loans
  • Scotiabank home improvement loan 
  • TD Bank Home Improvement loan 
• What’s the best way to finance home renovations in Canada?
  Your ability to secure money upfront through a loan depends on your financial situation. Factors like income, assets, and credit history influence eligibility, interest rates, and loan terms for renovation loans.   Understanding your financial position is essential to partner with the right lender who can offer the best solutions to revamp your living space and achieve your renovation plans, whether for large upgrades or smaller projects. Unsecured home improvement loans are among the simplest and hassle-free ways to finance your renovation project. With a speedy application process, many borrowers receive their loan amount on the same day they apply.  These types of loans come with a fixed interest rate. This stability simplifies budgeting, as monthly loan payments remain consistent throughout the loan term, so you can accurately predict your financial obligations.  Since these financial vehicles don’t require your home as collateral, you can still access additional funds without putting your property at risk. It is an ideal choice for homeowners who prefer protecting their properties from financial setbacks or those who don’t have enough home equity. Their repayment periods are typically 9 to 60 months, and loan amounts vary between $5,000 and $50,000, providing flexible finance options suited for various project sizes and budgets.
• What should I know about home equity loans?
  Home equity loans use your home as collateral; this means the lender can claim your home if you fail to repay it. They usually have competitive fixed rates, which keep your monthly payments the same. Lenders often offer larger loan amounts than unsecured financing options.  One of the primary advantages of these loans is the ability to borrow a substantial lump sum. If you own around 20% of your home, you could borrow up to 80% of your property’s value minus your existing mortgage balance.  Repayment terms generally range from 5 to 30 years. Depending on the lender, the loan application process might take several days or even weeks.
• What are the key features of home equity lines of credit?
  HELOCs offer a flexible borrowing option backed by your property. As a form of revolving credit, you can withdraw funds as needed up to a predetermined credit limit. This makes it convenient to borrow only what you need and pay interest on the amount you withdraw. Interest-only payments may be an option during the draw period.  HELOCs are considered a cost-effective alternative to a credit card because they often offer a lower interest rate, and responsible repayments can increase your credit score. However, interest rates are variable, which is good news when the prime rate is low.  The period in which you can access funds usually lasts 3 to 10 years, and you could potentially borrow up to 65% of your property’s value. Like home equity loans, the application process may take several days or weeks to complete, depending on the lender.  HELOCs are versatile and can be used for multiple purposes, including home improvements, debt consolidation, education, unexpected expenses, and large purchases, making them a flexible financial tool for many homeowners.
• What should I consider when refinancing my mortgage?
  Mortgage refinancing involves replacing your current mortgage with a new one to secure better terms. The process is similar to applying for a new mortgage.  People choose this financial vehicle to lock in lower rates leading to reduced regular payments and overall costs. Others do it to pay off their existing residential mortgages and access additional funds that can be used to fund financial goals such as home renovations, debt consolidation, and big expenses.  One advantage of this loan type is switching from a variable to a fixed-rate mortgage. This provides you with more predictability and stable payments. You could also adjust the mortgage term period to better align with your financial situation and goals. Refinancing is also used to consolidate multiple debts into a single manageable payment that could potentially save you more money on interest while simplifying money management. The application process usually takes about the same time as a new mortgage. 
• How much will I pay for home renovations in Canada?
  Costs can vary, making it hard to pinpoint an exact number. Here’s a general overview of what you might expect to spend on your home renovation project:  Kitchen  A significant investment that often costs around $195 per square foot. The average cost can range from $15,00 to $50,000 or more depending on factors such as new appliances, structural changes and custom features. Experts suggest allocating 5% to 15% of your home’s value for a kitchen reno. Bathroom  Costs vary based on desired upgrades, such as plumbing, electrical work, or luxury features. On average, a basic renovation requires at least $15,000. Budgeting extra can help cover unexpected costs. Painting  Painting is a budget-friendly upgrade with a big impact. Total costs are mainly determined by space size, paint quality, and labour, which range from $1 – $1.50 per square foot.