How To Finance Your Next DIY Project
If you’re thinking about home improvements, you’re not alone; nearly 50% of Canadian homeowners plan on making repairs or improvements to their house this year, which is up from around 37% last year.
While small DIY projects, such as preparing your home for Christmas, are normally very cheap, it tends to be much harder to finance expensive projects, such as installing new kitchen counters. The expenses can definitely start to run up, especially if you live in an older cottage – but they are well worth it if they are done right. In fact, some renovations can even increase the value of your property. If you have a big renovation project in mind and you’re not sure where to get the money from, don’t worry. Here are two ways to finance your next DIY project.
A Reverse Mortgage
A reverse mortgage is a financial agreement where a homeowner releases the equity in their home in exchange for a large sum of money. This mortgage is normally used by people who are about to retire so that they can supplement their retirement income, but any homeowner can apply for a reverse mortgage.
If you are accepted you will receive the money now, rather than when you sell your home, meaning that you will have lots of money to fund DIY projects – but it is important to be aware of the costs surrounding reverse mortgages.
The main benefit of a reverse mortgage is the amount of money that you will receive. After all, Canadians spend around $23,300 on kitchen upgrades and around $9,100 on bathroom upgrades, so the costs can quickly pile up!
Apply For A Personal Loan
If you don’t own a home one popular options is a personal loan, as this means that you don’t need to put up any assets as collateral. The downsides to this type of loan are that you will need a good credit score to be accepted. The interest rates can also be fairly high, so shop around and weigh up your options before making a choice.
There are lots of different ways to finance your next DIY project, but you should avoid using payday loans or anything with exceptionally high interest rates. This is because you can end up spending more than twice as much in the end, and the ensuing debt will make it difficult for you to make more renovations in the future.