Skip links
woman painting a wall yellow

Choosing between buying or renovating a house

Choosing between buying or renovating a house 

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

Apply now
woman painting a wall yellow

Benefits of buying a house

As the population of Canada grows, new houses and apartments are being built every day. There’s something for everyone in the new buildings. If you believe that getting a new place is the right decision, you can 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 closer to what you or a family member needs, such as schools or a convenient train station.  
  • 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 in new property – as you continue paying the mortgage, you’ll build equity. The more you build, the more financial opportunities you have, such as home equity loans or mortgage refinances. You can use that for future endeavors like a start-up business, an investment property, or home renovation.

Benefits of renovating a house

You don’t have to relocate to another 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 efficiency – many older houses in Canada still have heating and cooling systems that are several decades old. Many homeowners are encouraged to upgrade their homes to be 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. 
  • Create a new 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, dining room, or hardwood floors to look more modern will allow you to make the most of the space. 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 remodeling their old houses so they stay maintained. Many families intend to leave their property so that their future generations can benefit from it. 

When to buy and when to renovate

Remember 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, it may dictate if a new property or renovation is the best solution for you. 
  • Overall costs – it’s important to consider the overall cost between a move and a renovation. Depending on the renovation project’s extent or the minimum down payment required to get a new home, they can cost almost the same. Ultimately, you know the best choice regarding your time and resources.  
  • Mental well-being—an unexpected aspect to consider is everyone’s well-being. House hunting can take longer than expected, so finding something that fits your standards takes perseverance. On the other hand, living in a house undergoing large projects can also require a lot of energy. 

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 excitement when you see your designs and vision become reality. 

Financing renovations or mortgages with Alpine Credits

Once you have decided, 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 the equity stored in your property.  

Getting a home equity loan can be done in a few steps, which helps reduce stress from the overall planning and project. It only takes a few minutes, and you’ll hear back just as quickly.  

  1. Apply online—the application for a home equity loan from Alpine Credits won’t affect your credit score. You also don’t need to provide your credit history. The application will only ask for details regarding your property value. 
  2. Get approved—if you have at least 25% equity in your home, you’ll get approved within 24 hours of your application. 
  3. Renovate your home—after you get approved, the money will be deposited into your bank account, and you can use it to pay your renovation budget.  

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. 

An illustration of how home equity works.

Equity is the difference between your outstanding mortgage balance and the house’s value, 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, or you could make the renovation and use the loan to obtain another house. Home equity loans allow you flexibility while maintaining low-pressure criteria for applicants. 

Contact one of the Financial Solutions Specialists at Alpine Credits. Each team member is an expert 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. 

Apply now

Financing renovations or mortgages with Alpine Credits

The costs involved depend on how much of the house you’re changing. A bathroom or kitchen remodel will require more budget than new flooring or repainting. Building materials and general contractors will also significantly add to the overall cost of the renovation.  

The renovation process for a whole house can be a long commitment and may require room for larger budgets. It’s better to have more than enough to cover material costs rather than to find out later on that you still require more funding, which makes home equity loans one of the best options to cover material costs.  

Before starting your home improvement project, you must determine your budget. Have a look at your cost estimates and a potential payment schedule if you’re taking out a loan. Home remodels are exciting, but be sure to plan ahead regarding your budget