In today’s market, with the prices of homes so high, many people are unable to afford a new home and are deciding not to sell their current home. Instead, homeowners are choosing to remain in their home and renovate it to their liking. This has been a growing trend over the last few years and, in 2017, a poll by CIBC found that 56% of Canadians were choosing to renovate instead of buying a new home.

There has never been a better time than now for people in Ontario to renovate their homes. The GreenON rebate program offers homeowners amazing incentives to upgrade their existing home by offsetting the cost of new windows, doors, insulation, etc. These rebates can help substantially reduce the investment of fixing up your home, but they will not cover all the costs.

Many homeowners would like to renovate rather than move, but don’t know how they can afford the costs of their desired renovations. At Champion Mortgage, we have several options to help you turn your current house into your dream home. Here are a few ways that we can help you get the kitchen of your dreams, upgrade to energy-efficient windows, or install the heated floor you’ve always wanted:

First Things First

There is no one perfect solution for everyone. Your life and your goals are unique to you and your family. This means that, before making any sort of recommendations, a member of our team will meet with you to discuss your personal needs, goals, budget, timelines, etc. Once we have a complete picture of your finances and your wishes we will be able to determine which options will work best for you. We firmly believe in taking the time to make sure we understand what you want to achieve so that we can support you in making those goals a reality.

Option 1: Blend Your Mortgage

A blended mortgage means that we keep your existing mortgage and rate, then increase your mortgage for the amount you need at today’s rates, and finally blend them together for one simple mortgage with one rate and one payment. This new, and typically smaller, mortgage can be arranged based on current rates and with a duration suitable to you. Once we determine what works best for your situation, we will then combine the new mortgage with your existing mortgage for one easy loan.

This option will save you from needing to pay out your current mortgage — and this is a good thing to avoid as paying out your mortgage before your term is complete can result in penalties.

Option 2: Replace Your Mortgage

Replacing your mortgage means that we don’t change the amount of your mortgage but instead we adjust the terms. This means we can change the amortization rate (the length of time it will take to payback your mortgage) in order to make the payments more affordable and in line with your level of comfort.

This option can help ensure that you have increased cash flow for your renovations. We can also increase your mortgage to provide you with the money you need to complete your renovations.

Option 3: Get A Secured Line of Credit

Adding a secured line of credit means that you acquire an additional and substantial loan with funds that are attached to your home. This line of credit will have a separate payment plan and balance than your existing mortgage. Your home will be tied to this line of credit as collateral to your creditor.

This option can help you receive a larger amount of funds to put towards your renovations and it can be paid back over an extended period of time, or at any time without penalty.

Option 4: Get A Personal Line of Credit

Adding a personal line of credit means that you acquire an additional, and typically smaller, loan with funds that can be secured or unsecured. If the funds are unsecured, they typically have a fast approval process.

This option can help your receive a smaller amount of funds to put towards your renovations with a shorter repayment window.

Ultimately, there are other qualifications when considering financing and mortgage options — for example, you can only qualify for a loan up to 80% of your home’s current value. We understand that everyone’s situation is different and the options can be a bit confusing. We highly recommend speaking with an expert before making any decisions. Contact us at Champion Mortgage and we’ll help you navigate your options.