enovations have become a multi-million dollar industry in Canada as many homeowners are regularly upgrading the appearance and value of their dwellings. Whether you're looking at small improvements or a major renovation, you should be able to count on your financial institution to make your financing easy and affordable.
There's no point in making improvements if it means leaving yourself with less money to enjoy life. To make your home improvements affordable, you can arrange your financing with monthly payments to fit your budget.
With an installment loan, you can choose a fixed interest rate and a term from one to five years so that you know exactly how much you're paying each month.
Or, you may decide on a variable rate that fluctuates with changing interest rates. You can also use the equity in your home to secure the loan, which will give you the option of smaller monthly payments stretched over a period of up to 20 years.
Another route to consider is a personal line of credit. Once established, you simply write a cheque for the funds (up to your maximum credit limit) as you need them.
Visit your financial institutionbefore you begin your home improvement project to prequalify your loan. This way you can determine exactly what you can afford to spend. Then you can plan and budget for your renovations with the greatest of confidence.
To save even more time, with one simple telephone call, some financial institutions can complete your pre-approval over the phone and even provide quick credit approval without you having to leave your home.
Shop around for rates just like you would with a mortgage. There are some good deals to be found especially during this peak renovation season. And check to see if there are any changes for pre-payment or early payout.
One other important point. Give yourself some peace of mind by insuring your loan. For only a few dollars more, your loan payments are protected should anything serious happen that would prevent you from meeting your financial obligations.
Canada Mortgage and Housing Corporation (CMHC) offers a variety of publications on just about every renovation subject. Many of these booklets are free and there are even some "how-to" videos.
To obtain the CMHC catalogue of publications, check with your local CMHC office or to order any directly, call or write: CMHC Publications, 700 Montreal Road, Ottawa, Ontario, K1A 0P7, 748-2367.