It’s no surprise low Mortgage interest rates can motivate you to Refinance your Mortgage so you can get the cash you want to complete Home Renovations you have been holding off on, all the while enjoying low monthly payments.
Our team at Brampton Mortgage Broker knows firsthand how costly Home Renovations can be, and to come up with a large amount of cash in an instant can be downright difficult. Not to worry, if you have been thinking about starting a Home Renovation or completing the Home Renovation that you have already begun, then Refinancing your Mortgage can be a great option. Refinancing your Mortgage will allow you to gain access to your home’s equity so you can get the money you require for your Home Renovation at a low rate and low affordable monthly payments.
Our team at Brampton Mortgage Broker recommends that you Refinance your Mortgage if you are looking to complete a Home Renovation rather than using your credit cards or personal lines of credit or personal loans as those forms of debt can be very expensive. The best option as a homeowner will be utilizing your home equity through Refinancing your Mortgage for the purpose of a Home Renovation.
That’s all good, but what does Refinancing your Mortgage mean, and how does it work? To quickly explain, Refinancing your Mortgage is when you replace your current Mortgage with a new Mortgage for various reasons such as lowering your Interest rate, tapping into your home’s equity for a fast cash payout, switching from a fixed-rate Mortgage to a variable-rate Mortgage.
There are many benefits to Refinancing your Mortgage, but we’ll just list a few to keep it simple, such as, securing a larger mortgage amount, obtaining a lower mortgage interest rate, consolidating all of your debts into one payment instead of multiple payments, and getting the funds needed to complete your Home Renovations.
If you are Refinancing your Mortgage for the purpose of completing Home Renovations, here are some types of Home Renovations you can consider:
- An addition of a room
- New Windows
- New Appliances
As you can see from this list, there are many Home Renovations you can choose from, and all these Home Renovations are a great reasons to Refinance your Mortgage. For the most part, all major Home Renovations are well worth completing as they can improve the appearance and function of your Home and Home Renovations can also add a significant increase to the value of your home.
Now that you know what Refinancing your Mortgage for a Home Renovation can allow you to do, it’s time to talk about how much you can Refinance your Mortgage for a Home Renovation. When Refinancing your Mortgage, there is one major requirement that will need to be met, which is the amount of home equity you have available. You will be required to have a minimum of 20% equity available in your home. This will be confirmed through an appraisal report, done by an Appraisal company that is accredited and approved by the Mortgage Lender of choice you are working with.
This appraised value will allow you to be able to borrow up to a maximum of 80% of your homes value. For example, if your Homes appraised value is $1,000,000 then 80% of the appraised value would be $800,000. So, based on this example you would be able to Refinance your Mortgage up to an amount of $800,000. Just make sure the amount you are looking to Refinance your Mortgage for is suitable with the amount you are looking to obtain, otherwise, you may want to hold off.
Now that you know how much you can Refinance for and what it takes to Refinance your Mortgage for a Home Renovation, you are all set to start the process. To ensure you have stress free process, make sure to contact our team at Brampton Mortgage Broker so we can make your Mortgage Refinance an easy one.