Steve and Donna: We love our home and our neighbourhood, but the kitchen and bathroom really need work. We have a contractor lined up to do the work, but what's the best way to borrow the money we need?
"Examining your expenses and income will give us an idea of how much you qualify to borrow," a CIBC advisor explains to Steve and Donna. She also outlines the advantages of two borrowing options to consider:
Refinancing with the CIBC Home Power® mortgage
Increasing the amount borrowed against their home will give Steve and Donna a structured repayment plan that they can work into their budget. For their convenience, payments can be added to their current mortgage.
Using a CIBC Home Power® Plan line of credit
"A line of credit secured against the equity in your home is a great choice when you need flexibility," their advisor explains. "Think of it as a reusable source of credit. You'll enjoy access to your funds, up to your limit, at any time with your CIBC debit card. Plus you have the option to pay interest only on the funds you use."
Both options can be set up with automatic payments, so Steve and Donna don't have to worry about writing cheques or missing a payment by accident.
After discussing things with their advisor, Steve and Donna decide that a CIBC Home Power Plan line of credit is the best choice for them. Because it's secured, they'll receive a low interest rate and they'll have the flexibility to adjust their repayments according to their monthly needs. Renovations are now under way, and Steve and Donna are looking forward to enjoying their new kitchen and bathroom.