There are many ways you can pay for a home renovation. One of the most popular ways is through a second mortgage. But you can also pay for a home renovation using a first mortgage, if you know how to do it. Here’s how to remortgage for renovations with your Ottawa mortgage.
When you remortgage your home, you pay off your existing loan and obtain an entirely new mortgage with a different lender. When you do this you can then save enough money to make your home renovations – and you’ll have that cash in hand before you ever even pick up a hammer.
In order to save money on your remortgage, there are two different ways you can do it. The first is to choose a new loan that has a longer amortization period. While this could end up costing you more in interest in the long run, you also won’t be making those high monthly payments in the meantime. With the extra money left over from those payments, you can save enough to make your home renovations, and without borrowing more to do it.
The other way to save money on your remortgage is to choose a lower interest rate. When you do this, the total amount of your new loan will be lower than what you’ll have to repay on your old mortgage. These leftover funds can then be applied to a home renovation, which will add value to your home; not to mention give you an entirely new portion of your home to fall in love with all over again!
When it’s time to remortgage in Ottawa, make sure that you find a mortgage broker that can help. Comparing lenders, rates, and packages is extremely important in the remortgaging process; and in fact, it’s the only way to ensure that you won’t have to do it again and possibly, cost yourself even more money. And while comparing lenders can be a tedious and time-consuming chore, a mortgage broker can do it for you. Brokers already have an extensive network of lenders they can contact and compare; and having already built relationships with them, they will also have a good idea right off the bat of which lender might be best for your remortgage in Ottawa.
Remortgaging your home for renovations in Ottawa is a great way to add value to your home, and maybe even save you some money in the meantime. Just make sure you do it with the right lender, and you’ll never regret that you did.