During this crisis period, we find ourselves spending a lot of time at home. And with the arrival of spring, renovations projects are very likely to bloom everywhere!

We’d like to take a few minutes to tell you that funding your renovations through your mortgage loan can be a cost-effective solution to consider.

Of course, you must weigh in several conditions and factors, such as:

• Your current income;
•  The net value of your property, or equity, which is the difference between the market value and your outstanding mortgage balance;
• The type of work you plan on doing.

What is important to understand is that taking a personal loan to fund renovations will cost you between 5% and 12% of interest, while revolving credit (credit card) will cost in upwards of 19% of interest. These two options may not be the best ones to choose, especially when considering that mortgage loan interest rates vary between 1.60% and 3.59%*.

In summary, you should contact your mortgage broker before undertaking renovations to update your budget and consider the available financing options for you.

*Rate on March 22th, 2022