Would you like to add a room to your home? Are you considering a kitchen or bathroom makeover? Some renovation projects increase your home's value and improve your day-to-day living:
- Kitchen improvements
- Bathroom remodels or additions
- Master bedroom with ensuite and walk-in closet
These are nice to have, but have less impact on property value:
- Swimming pool, sauna or hot tub
- Central vacuum system
- Reducing the number of bedrooms to less than 3
- Driveway paving stones
Once you decide on a project, do your research, determine the cost and follow these tips.
Make a home renovation plan
Figure out how much your renovation will cost, and evaluate your expenses and income. If you want to borrow money, calculate your monthly payments with our loan and line of credit calculator.
As you make your plan, consider these factors:
- Do you need a municipal building permit?
- Do your plans meet municipal zoning bylaws and regulations?
- Are there federal, provincial or municipal programs that offer subsidies or tax credits for your kind of project?
- Do any of your friends, neighbours or co-workers know any reputable contractors or tradespeople who could do the work?
Once you find the right contractor or tradesperson, get a signed contract that sets out your agreement and itemizes the work.
Get the funds you need
You can apply for renovation financing through a mortgage or line of credit. If you have a mortgage but need more funds, consider refinancing your existing mortgage.
With mortgage refinancing, you increase your existing principalOpens a popup. and get the difference between your existing mortgage and the new one. Since the new mortgage is replacing your existing one, details like rates and payment amounts may change. But you can keep or change your existing amortization periodOpens a popup. and payment frequency.
Learn about the CIBC Home Power® Mortgage.
Line of credit
You can also get money with a home equity line of credit. Over time, as you make your regular mortgage payments, your home equity increases. You can tap into this value through a line of credit.
This is called a secured line of credit because it's secured by your property. Interest rates tend to be lower than on unsecured personal lines of credit. You make interest-only payments on these loans.
Learn about the CIBC Home Power Plan Line of Credit.