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A home renovation loan for Canadian homeowners 

Improving your home is a big commitment and a significant investment. Many Canadians consider giving their property a makeover but might see the required budget as an obstacle. Instead of worrying about how much they’ll have to save and spend, homeowners can apply for a loan to finance the renovations. 

Home renovation loans are essential for Canadians because they can allow homeowners the opportunity to realize their dream living space. Homeowners can even get a different type of loan depending on their projects’ size. However, no matter how ambitious the ideas are, a home equity loan from Alpine Credits is one of the best ways to support those plans. 

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Turn your home renovation project into a reality 

If you’ve lived in your home for several years, you may feel a change is due. You may start generating ideas and plans on how to accomplish them. Not only is it exciting to bring your creative ideas into reality, but renovating also provides other benefits.  

  • Increase property value—with higher appraisal values, you can either sell the house for a higher price in the future or access additional funds through your equity. If your home is in a safe and convenient neighbourhood, redoing the inside will benefit its value.  
  • Be more energy efficient—replacing older appliances or upgrading the house’s insulation is part of the home improvement process. You can consider them investments that can lower your future utility bills.  
  • Elevate the aesthetics—since it’s your home, redoing the space to align with your personal preferences is essential, especially if you wish to keep the property longer.  
  • Maximise space—to give the house a design you like, you can also expand rooms by tearing down and replacing walls. To do so is a big commitment and requires experts to help you accomplish it.  
  • Create rental opportunities—some people will turn their basement into a livable space to rent out to international students or new immigrants.

Types of home renovation financing options

You can find various ways to support your home renovations financially. Certain types of home improvement projects will also have different requirements. For example, a pool addition or a roof replacement will need more financial resources than a new paint job in the bedroom.  

  • Use your savings to pay for your renovations—spending money on renovations can help you save on interest, but your savings capacity is limited. Unless you only plan to do more minor home improvements, a better option may be to borrow money.  
  • Apply for funding and grants from the government—sometimes, you can get a grant or receive a reimbursement from the provincial government. They’re great options when your renovations are centered around accessibility but are not generally available for those who want to change the house’s style.  
  • Finance your renovations with your home equity—homeowners can access the value of their home equity as cash. The property equity is calculated by taking the difference between the outstanding mortgage and the house’s appraisal value. When getting a home equity loan from Alpine Credits, you’ll be able to receive up to 75% of your home equity as a loan.
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The cost of renovating a house

The bigger your plans, the more you’ll have to spend on the project. Some repainting or lighting replacements can bring the cost of the renovation to about $5000, while more thorough changes can cost up to $2 million.  

You can find strategies to be economical with your renovation, but do discern which areas will allow you to do so. Painting gives you the flexibility to buy more budget-friendly paints but give yourself more budget for other aspects like cabinetry or flooring. They’ll be more beneficial in the long run because they won’t have to be constantly replaced.  

Some renovations will require you to have the help of general contractors, which is one of the main reasons you need to have a relatively large budget for full-scale makeovers. Despite being an expensive part of the renovation, they are reliable in efficiently and safely finishing the projects.  

While budget is a major factor in planning, you will also be giving a significant portion of your time. Whether you’re planning your designs, choosing your materials, or doing a part of the project yourself, be ready to give time to the renovation.

Leveraging your home equity to cover the cost 

A home improvement loan is one of the most common ways to finance a home renovation. Renovations are typically costly, and few people can have the money immediately ready in their savings accounts. Specifically, a home equity loan is the solution to fund your home improvement project. 

By subtracting the outstanding amount of your existing mortgage from the appraised value of your home, you can determine how much equity you have. The more equity you have, the bigger the loan you can borrow. With Alpine Credits, you can borrow up to 75% of your home equity; for many homeowners, 75% of their equity is more than enough to pay for their renovations.

Benefits of home renovation loans from Alpine Credits 

You have a unique opportunity as a homeowner who has built some equity. Unlike other loans, home equity loans can provide you with several advantages.  

  • Simple application process—unlike applying for loans at traditional lenders, you can finish an application for a home equity loan within a few minutes.  
  • Quick approval and funding—you’ll hear back from Alpine Credits within a few days and not more than a week about your application status and the money will be deposited into your bank account within the week.  
  • Flexible amount—you don’t need to borrow the total home equity loan amount; you can borrow just as much as your renovation plans require. You’ll be able to get the amount you need, which is more than credit cards and personal loans can offer.  
  • Fixed monthly payments—home equity loans usually have a fixed interest rate, which allows you to predict your spending and track your budget.  
  • Lower interest rate than credit cards—some people put their home renovation expenses on a personal line of credit, but credit cards come with high interest rates. Home equity loans offer comparatively competitive interest rates, which allows you to save more.  
  • No credit score checks—a unique feature that Alpine Credits offers is that they don’t check your credit score. The only factor determining your eligibility is your home equity rather than your financial history. 
  • Good for full-scale makeovers—the cost of hiring general contractors and purchasing the materials can quickly build up. If you have a lot of equity, you can use it towards those expenses without worrying about having too little. 

Kinds of home renovation projects to get a loan for 

Most significant renovations require financial assistance, but they can also be the most meaningful ones, increasing the property value and making the space more comfortable.  

  • Full kitchen makeover—you can give your kitchen a more modern look by replacing the cabinetry and the lighting. Replacing kitchen appliances is also important because older ones can take more energy than modern ones.  
  • Full bathroom remodel—changing a bathroom can be important because keeping the area clean and updated is essential. New toilets and shower heads can also help you save money on your utility bills.  
  • Basement renovation—if you have enough space in your basement, you can convert it into an additional living area to rent out to a tenant to generate extra income. Other people may turn the basement into a personal entertainment room. 
  • Landscaping—a renovation that increases your house’s aesthetic and overall value by cleaning up the outside. Even if you’re not doing anything significant, adding some shrubbery and flowers can change a house’s first impression.  
  • Unexpected repairs—you may need to fix up some parts of your home sooner rather than later, like patching up the roof for leaks or replacing a broken furnace.  
  • Exterior improvements—from changing old windows and doors to rooftop renovations, installing new ones can let more natural light in, improve the house’s curb appeal, and help you save energy by insulating the home better. 

See how Alpine Credits compares 

Traditional financial institutions are not the only places Canadians can get a loan. Many look to alternative lenders like Alpine Credits for a home equity loan. Unlike at the bank, the only information needed is regarding your property.  

The application and the criteria are more straightforward than the banks. Homeowners get approved if they have paid at least 25% of their mortgage. Alpine Credits’ application can be made online or through the phone. Not only can you be approved within a few hours, but you could also receive the money within a few days.  

When considering financing your home renovation, a home equity loan can offer you the best quality over credit cards, savings, and personal lines of credit.  

Credit cards have considerably high interest, so using them to pay for extensive renovations can result in a large portion of your credit payments going towards only the interest. Also, using more than 30% of your credit limit is not a healthy way to use them.  

With savings, you don’t have to budget interest payments. Unless you have set aside a certain amount for your renovations, using your savings leads to missing out on investment opportunities.  

A line of credit is possible, but getting approved for them by traditional lenders requires a solid financial history. Lines of credit also have other fees, and the total amount will depend on how much of the costs you’re willing to pay.

A graph comparing loan examples

Get a free quote on home improvement loans at Alpine Credits

Alpine Credits specializes in offering home equity loans to homeowners who have equity in their property. Contacting Alpine Credits is free of obligation, and you gain the opportunity to talk to a Financial Solutions Specialist about your financial situation.  

  1. Apply online—the application will only take a few minutes to complete, a more straightforward process than applying for personal loans from traditional financial institutions.  
  2. Receive application results—unlike the bank, Alpine Credits will let you know you’re approved within 24 hours.  
  3. Secure the funds—you’ll receive the money in your bank account within a few days, and you can start your home repairs and improvements.  

All you need to qualify for a loan is to own your home or other real estate. Traditional banks look at factors such as your age, income, and credit history to approve you for a loan. Alpine Credits only focuses on the equity you have in your properties.

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Frequently asked questions

Some renovation projects are eligible for tax deductions, and each province has different programs. If your renovation is to improve the house’s energy efficiency or to be more accessible, you’ll likely get tax credits.

Asking your landlord before you make any changes is the first step. Some may allow minor changes, like repainting the wall, while others may not permit you to modify anything.

You can find a purchase plus improvement mortgage in Canada, which is when the renovation cost is incorporated into the total mortgage cost. The renovation’s maximum can be $40,000 or 10% of the home purchase price.

With a home equity loan from Alpine Credits, you can borrow as much as 75% of your equity. The more equity you have, the more you can borrow and the more you can improve your property.

When you budget for your renovation project, set aside emergency money because renovations may take longer than planned. You may need the money to eat out while your kitchen is redone, or you may discover that you need to reinforce the house’s structural integrity.

**The above chart entitled “Monthly Loan Payments on $35,000” is for discussion purposes only. The graph is intended to illustrate various monthly payments associated with different product offerings to the reader. Please see below for the unique terms and conditions related to each offering. Final rates and payments for all loans in question are subject to change and vary based on each individual’s situation.

Bank Loans: $35,000 interest-only loan with fixed rate prime (2.95%) + 3% / monthly payment. Two-year term in which 100% of principal is owed at the end of the term. Other fees (appraisal/legal) may apply.
Alpine Credits 1st Mortgage: $40,500 (net $35,000) interest-only loan with 5.75% interest rate in year one and prime + 4.00% in year two. Two-year term in which 100% of principal is owed at the end of the term. Monthly payment and APR associated closing costs (legal fees, appraisal, brokerage fees).
Alpine Credits 2nd Mortgage: $40,500 (net $35,000) interest-only loan with 8.75% interest rate in year one and prime + 6.05% in year two. Two-year term in which 100% of principal is owed at the end of the term. Monthly payment and APR associated closing costs (legal fees, appraisal, brokerage fees).
Credit Cards: $35,000 loan paid off in 5 year & monthly PMT. 19.99% interest rate & fee of primary and secondary user ($99 + 30$ = $129 Yearly).
Online Loan 1: $35,000 loan paid off in 46 Months/Bi-weekly PMT with a 26.90% interest rate. Loan details have been taken directly from the online lending company’s website. Other fees may apply.
Online Loan 2: $35,000 loan paid off in 4 Years/Bi-weekly PMT. Loan details have been taken directly from the online lending company’s website. Other fees may apply.