A home renovation loan is a great option for home buyers or current homeowners who want to make renovations, but don’t have the cash on hand to do so. This type of mortgage combines the cost of your new or refinanced mortgage with the cost of your project in one single loan. This saves you time and money by reducing your overall closing costs, and allows you to start your home renovation project sooner.

What is the renovation tax in Canada?

A specialized home renovation loan can be used for projects such as roofing, waterproofing, energy improvements, and mold remediation. It can also be used for more cosmetic upgrades such as a remodeled kitchen, master bathroom or exterior renovations. However, it is important to consider what types of renovations will actually increase the value of your home and will likely be attractive to future buyers when making a decision to do so.

A good place to start is by determining your budget and which renovations would maximize your investment in the event you choose to sell your home. It is also a good idea to consult with a licensed real estate professional to help you get an estimate of the cost of your project. Finally, if you don’t have the funds to cover your renovations in full at the beginning of the project, it is often a good idea to use a credit card with an interest-free period. This will allow you to track your project costs in an organized fashion and limit any overspending.