Renovation financing options

Credit cards can be a handy tool for smaller projects, allowing you to cover the cost of materials or even some professional services.

Benefits of using a credit card for renovations

• Flexibility

• Convenience

• Reward programs

Things to know

✔ Carrying a balance for an extended period on your credit card can typically come with higher interest rates and charges.

✔ Utilizing a significant portion of your credit limit can temporarily affect your credit score.

Great for: Small to moderate-size home improvement projects. Individuals who will promptly pay off the balance to avoid high-interest charges.

This financing option provides a lump sum amount that you repay through regular payments, over a predetermined length of time (typically one to five years).

Benefits of using a personal loan for renovations

• Lower interest rates

• Fixed repayment schedules

• Quick approvals

Things to know

✔ Carrying a balance for an extended period on your credit card can typically come with higher interest rates and charges.

✔ Utilizing a significant portion of your credit limit can temporarily affect your credit score.

Great for: Small to moderate-size home improvement projects. Individuals who will promptly pay off the balance to avoid high-interest charges.

Offering flexibility and convenience, a line of credit allows you to access funds as needed, paying interest only on the amount used.

Benefits of using a personal loan for renovations

• Lower interest rates

• Flexibility

• Re-borrowing capability

Things to know

✔ A line of credit uses revolving credit, meaning as you pay down the borrowed amount, the credit becomes available again (like a credit card).

✔ Minimum payments are required and it’s important to have an approach to repayment to avoid accumulating debt.

Great for: Ongoing or long-term improvement projects; individuals who like to have funds available for unexpected costs.

A unique financing option that allows you to borrow up to 80% of your home’s current appraised value. These funds can then be used as a revolving line of credit, a term loan, or even a regular mortgage.

Benefits of using a personal loan for renovations

• Lower interest rates

• Extended repayment period

• Single monthly payment

Things to know

✔ Approval of the Home Plus Plan is contingent on your mortgage eligibility.

✔ While potentially cost-effective in the long run, incorporating renovations into your mortgage may involve upfront costs such as legal fees and appraisal expenses.

Great for: Homeowners planning major renovations; individuals seeking lower interest rates and longer repayment periods.

Our Purchase Plus Improvements Plan allows you to add extra money to your mortgage so you can cover the costs of renovations in one convenient loan.

Benefits of using a personal loan for renovations

• Lower interest rates

• Consolidated loan repayment

• Enhanced property value

Things to know

✔ Your planned renovations must align with Conexus’ guidelines and contribute to the overall improvement of the property.

✔ The Purchase Plus Improvements Plan is subject to approval.

Great for: Homebuyers looking at houses that need renovations.

This option allows you to replace your current mortgage with a new one, which can include an increase in funds and different terms and conditions.

Benefits of using a personal loan for renovations

• Lower interest rates

• Equity utilization

• Extended repayment period

Things to know

✔ Refinancing could involve extra costs such as appraisal fees, application fees, and legal expenses.

✔ This option could extend your mortgage commitment.

Great for: Homeowners planning major renovations; individuals looks to use their home equity for cost-effective financing.

Have questions about which mortgage option is most suitable for you?

Want to learn more about mortgages? Book an appointment with one of our advisors.