Skip links
Good equipment really is important while renovating

7 Reasons Why Homeowners Get a Home Renovation Loan

A home is one of the most important investments people can have in their lives, and maintaining that investment needs regular upkeep. Over time, wear and tear can happen on the property, requiring investment in repairs and renovation. 

According to Statistics Canada, Canadian homeowners spend at least $24,000 in maintenance and repairs despite increasing financial constraints.  

This article will delve into seven compelling reasons why homeowners continue to renovate their homes and why they turn to home renovation loans to support their home improvement endeavours. 

Reasons why homeowners get a home renovation loan

With many reasons for a house to be renovated, most homeowners do so to increase their property’s value and maximize the return on investment (ROI) of their property 

With a home renovation loan, funding your home improvement project shouldn’t be a challenge. So here are seven reasons why you should consider a home renovation loan: 

1. Increase property value 

Homeowners can increase the value of their homes through some strategic upgrades, such as remodelling the bathroom and kitchen or adding a deck and patio. This increase in value will be crucial when they decide to sell the property or rent it long-term.  

2. Avoid the hassle of moving 

Most of the time, a home becomes a treasure trove of memories. But sometimes it doesn’t have the necessary spaces you need for a growing family. If you plan to stay at your home, then a home renovation loan will provide the funding you need for the home projects you want. 

3. Flexibility in home improvements 

One of the most significant upsides of a home renovation loan is its flexibility. Homeowners are not limited to the usual kitchen and bathroom updates; they can also use the funds to make any other upgrades or emergency repairs. 

4. Build home equity 

Home equity means the difference between the current value of your home and the amount outstanding on your mortgage.  

With a home renovation loan, homeowners can increase their home equity because they are increasing the value of their home property. Together with making regular mortgage payments, this may lead to larger potential funding for subsequent loans. 

5. Flexibility in financing 

With a home renovation loan, homeowners have various options to get their funding, including home equity loans. Home equity loans will grant a lump sum best suited to finance one-time, major projects. 

In addition, repayment for home renovation loans can be spread over a short or long time, which means homeowners have the flexibility to adjust their repayment to suit their financial situations and goals. 

6. Cost-effective financing 

Not only do home renovation loans have lower interest rates than credit cards, but they also come in fixed interest rate options. This means you will also know how much your monthly payments will be and can plan your finances accordingly.  

7. Achieving dream home goals 

Whether you want a modern minimalist home or a comfy rustic cove, achieving your dream home goals is easier than ever with a home renovation loan. With flexibility in payments, lower interest rates, and access to necessary funds, homeowners can turn their dream home into a reality.

Family couple maintains home accounting, discuss plans and future payments, surrounded with bills on floor, dressed in domestic clothes, drinks tasty hot coffee, analyze income chart together

Tips and common misconceptions

To ensure renovation success, homeowners need to pay attention to these three common mistakes: 

1. “Renovation is not that expensive.” 

While savvy homeowners can save money on easy DIY home renovations, many underestimate the renovation project cost. Without proper research, this cost can balloon over time, requiring more unplanned financing and expenses. 

2. “Any contractor will do.”

Investing in a good contractor will help avoid delays, unnecessary expenses, and, sometimes, legal problems. With a good contractor, not only can you save money, but also will make your dream design a reality. 

3. “All renovation financing is the same.” 

Getting funding for your home improvement project can come from various sources. Your savings, loans from friends, home equity, or lines of credit are all options. However, it is crucial to select the most appropriate solution and lender for your financial needs and goals. 

Securing a home renovation loan with Alpine Credits 

Home equity loans are one of the best ways to finance your home renovation project. As mentioned before, the larger the equity you build, the higher the potential loan amount and the more extensive renovation you could achieve.  

With over 50 years of experience in Canadian alternative lending, Alpine Credits can provide the financial solutions and flexibility you need through the asset you already have—your home. Unlike traditional banks, the primary consideration is your home equity, which is why homeowners get approved, regardless of credit, age, or income. 

Apply today, and you’ll receive the results of your application within a few days.

Apply now

Frequently asked questions

A home renovation loan can provide homeowners with the increased property value, larger home equity, lower interest costs (than credit cards and traditional personal loans) and flexible repayments. 

Using a mortgage for renovation means using your home as collateral to secure your mortgage loans. The proceeds from this loan will then be used for renovating your home.

The primary reason people do home renovation is to increase the value of their property, in the case of selling it for a higher amount in the future, or to charge higher rent prices in case of leasing opportunities. Some other reasons include improving the overall quality of life of the home, avoiding the hassle of moving and achieving dream home goals.