Home renovations add value to your home. But they can be costly to undertake for most Canadians. Some people may rely on personal loans with sky high interest rates to make their houses look better or offer more functionality. Personal Loans are not the ideal for this because these can trap you in debt.
Personal loans are often unsecured, so borrowers run the risk of being burdened with insane interest rates that makes repayment unaffordable. There are alternative options to keep home improvement loans less costly. Here are some ideas:
Try a DIY Project
Costs of home improvement and renovations projects can run high when you rely on outside contractors. One of the easiest ways to cut down costs is to undertake the product yourself.
Small DIY home improvement projects are perfect for homeowners on a budget and also hobbyists. However, keep in mind that not everything can be done DIY. Some big projects would still require professional contractors.
Avoid Branded Products to Keep Costs Low
Want to restock the new kitchen with branded tiles or repaint the doors with the “colour of the year”? Branded lifestyle products always cost more. Keep the overall costs down by using sensible products preferably local, like Pickering windows.
The advice here is to avoid luxury branded products, which only cost money without offering any practical advantages. By all means go with brands that offer more values with qualities like durability.
In the end, most people don’t know whether the new floor has fancy branded tiles or not. With most home improvement products, it’s the overall looks that matter, not the product label.
Take Out a Second Mortgage
If you are fixing a door, you can do it relatively cheaply even with hired labour. But some home renovations projects are too large to DIY or do on the cheap. For example, if you are redoing the entire kitchen, adding a deck or installing carpeting, you will need serious cash.
Not all Canadians have savings lying around to use in these situations. In that case, you can consider one borrowing option: second mortgages. Here’s the advantage these types of loans have against persona loans: they are secured.
Personal loans are often unsecured types of loans that come with high levels of interest, like instalment loans or payday loans. Second mortgages that require a collateral (you house in this case) tend to have low interest rates in comparison.
This is not to say that second mortgages are cheaper. They can be expensive. But if you want a lot of cash, you can consider this secured loan option. But make sure that you can comfortably repay what you borrow. Remember, the loan option is only worth it if the renovation increases the overall value of your property. Don’t use a second mortgage for a thing like buying a boat, which decreases in value over time.
Use Local Vendors for Supplies
Want more natural light in the house? Then use a local Kitchener windows vendor in your area to buy what you need. Local vendors typically tend to offer cheap and affordable prices for homeowners, as opposed to high-flying services that charge fat commission fees.
You might be able to save thousands of dollars at your local vendor instead of flying in what you need from a big city. Some vendors may offer payment plans so you can repay on a monthly basis. You can also avoid unnecessary charges for the most part. Besides, the local shops know which materials are best to withstand the weather and climate in your area of residency.
As wonderful as a home renovation idea might sound, don’t undertake it if you really can’t afford it. The above may help budget homeowners. But be careful about the financial burden you put on yourself.