To renovate a house or to buy a house?
After living in your house for several years, you might find yourself searching for a bit of a change in your living space. Your house is a valuable asset, so whether you want to find a house or start a renovation project, what’s important is making an informed decision.

Benefits of buying a house
As the population of Canada grows, new houses and apartments are getting built every day. There’s something for everyone in the new buildings. If you believe that getting a new place is the right decision for you, then you get to enjoy the following benefits.
- Change of location – sometimes living in a different part of town or moving provinces provides a fresh start. You can move closer to amenities that are closer to what you or your family needs, such as schools or a convenient train station. Other times, moving to different cities is what you have to do because you experience life changes such as a new career.
- Long term investment – if you’re getting a new piece of property, but not selling your current one, you have the opportunity to generate rental income. Especially if you acquire property in an area that many people want to move to, you’ll have an easier time finding tenants.
- Build equity – as you continue to pay down the mortgage, building up equity in your property will occur naturally. The more that you build, the more financial opportunities you have such as home equity loans, home equity lines of credit, and mortgage refinances. You can then use that for future endeavours like a start-up business, an investment property, or an education.
Benefits of renovating your home
You don’t have to relocate to a different location to achieve your dream home. You can launch a home renovation project to bring your ideas to life. Not only is it an achievement to give your bedrooms and bathrooms a makeover, but it also gives some of the following advantages.
- Improve energy use – many older houses in Canada still have heating and cooling systems that are from a few decades ago. Canadian homeowners are encouraged to upgrade them so that they are up to standard. Likewise, older appliances or light fixtures should be replaced with more modern ones so that homeowners can save money while being energy efficient.
- Maximize living space – large-scale projects like a home remodel can lead to changing the entire floor plan so that rooms combine in size, creating more utility. Many Canadians completely redo their basement or lower floor so that additional family members can use it or, so it can be rented out.
- Increase property value – one of the biggest advantages of renovating is that it increases your house’s value. Changing your kitchen cabinets, your bathroom vanity, or your flooring to look more modern will allow you to make the most of the space; you can even rent it out because it’ll be a more comfortable place to reside in. Some Canadians treat renovations as an investment and decide to sell the house after they finish the makeover.
- Keep property for generations – a current trend in Canada is that homeowners are remodelling so it stays maintained. Many families intend to leave their property so that future generations in their family can benefit from it.
When to buy and when to renovate
Remember the following are what to look for when buying a house or renovating your current property.
- Market environment – when you’re selling your house and looking to buy, it’s important to research what the current resale market looks like. Many market factors can impact the price of real estate and the market demand. Depending on where you are in Canada and the market conditions in that area may dictate if moving to a new property or renovating is the best solution for you,
- Overall costs – it’s important to consider the overall cost of a move and of a renovation. While renovations normally require less monetary support than purchasing property, sometimes it’s best to let the house go and move on to a new house for an exciting new adventure. Especially if family or personal circumstances have changed that may make moving a necessity.
- Mental well-being – an unexpected aspect to consider is everyone’s well-being. House hunting is a process that can take longer than expected, so it could take a good amount of perseverance to find something that fits your standard. On the other hand, living in a house undergoing renovation can also be tiring. Either way, be sure that you’re prepared for the work ahead of you.
As with anything, buying something new to replace the old is very exciting, and houses are no exception to that idea. However, renovating brings a different kind of excitement when you see your own designs and vision become reality.
Financing renovations or mortgages with Alpine Credits
Once you have made your decision, the next step is to determine how to finance your project or the down payment for another house. Fortunately, both can be funded by one source, which is with the equity stored in your property. As mentioned earlier, equity increases the longer you have made regular payments to the interest and principal of your outstanding mortgage. More equity also equates to obtaining a larger home equity loan for your purposes.
Equity is the difference between your outstanding mortgage balance and the value of the house, giving the home equity loan the potential to grow along with the upgrades you make or as you pay off the mortgage. You can use the loan before you make your renovations; you could also make the renovation and use the loan to obtain another house. Home equity loans allow you flexibility while maintaining low-pressure criterion for applicants.
Contact one of the Financial Solutions Specialists at Alpine Credits. Each member of the team is educated on home equity loans, so they’ll be able to answer your questions about how to access your equity as a loan and how it can be used towards your next project or property. As long as you have paid off at least 25% of your mortgage, you could be eligible for a loan.