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Mar 21 Putting the ‘Spring’ Into Your Home – Home Renovations

Posted by: Diane Alvernaz

At MonsterMortgage.ca, we get many clients who call us looking to refinance their property to help them pay for home renovations

On the March 21st episode of CP24’s ‘Hot Property’, the hot topic will be on Home Renovations – as spring time rolls around, home owners inevitably start to look around at their homes and consider what improvements they might make next. Whether you’re looking to add to the value of your home, or you’re just looking to enjoy a makeover, a home renovation might make sense for you.

According to the CMHC, over 36% of home owners renovated their homes in 2011 (spending an average of approx. $14,000) & 37% of home owners indicated that they intended to undergo a home renovation in 2012 across the 10 largest urban cities in Canada

In order to finance your home renovation of choice here are the basics you should know:

Consider the Type of Home Renovation

Home Renovations Typically Fall Into Three Segments:

Lifestyle renovations:

  • these home renovations improve your home and your way of life, ex; building a sun room for pleasure, or converting unused attic space into living quarters to meet your changing needs.

Retrofit projects:

  • these home renovations focus on your home’s shell or mechanical systems, Ex; upgrading your insulation, replacing your furnace, or putting on new siding.

Maintenance and repair renovations:

  • these types of home renovations protect the investment you have made in your house, ex; caulking windows, re-shingling your roof, or replacing your eaves troughs.

  • Decide what kind of contractor you need:

A general contractor manages the project, hires the tradespeople and takes care of the permits. If it’s a smaller job, choose a specialized contractor who handles specific projects (like bathrooms or windows) and does the work himself.

  • Interview and get quotes from at least three:

Ask about experience, talk to past clients and visit past projects. Make sure each contractor has a license, liability insurance, workers’ compensation insurance and a clean Better Business Bureau record. Then ask for a detailed plan, including timeframe and cost.

  • Get everything in writing:

Include a list of materials and brands, labor to be performed (is site cleanup included?), warranty, permit obligations, and how client changes will be handled.

  • Agree on a payment plan:

Include down payment amount (anything under 15% is reasonable). Work out a payment schedule and make sure payments sync with the work that’s been done (don’t pay half until it’s halfway complete).

  • Schedule a final walk-through:

Check off every detail. Make a list of things that still need to be done before making the final payment.

If you have any more questions regarding your next home renovation and how it relates to your mortgage, do not hesitate to contact me at diane@monstermortgage.ca or to fill out a contact request.

Also, tune into CP24’s ‘Hot Property’ every Thursday night at 7PM and you can have your mortgage question answered live on-air. If you’ve missed an episode, and need to know the latest on mortgages in Canada, you can watch previous shows online here.

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