Next to purchasing a home, a home renovation is the most costly endeavor that many people take on. In this segment of The Marc and Mandy Show, Monica Falco from Capital Home Lending shares some advice on how to budget a renovation. Keep reading for the expert Q & A.
Q: What are some costs you have to be aware of when you’re buying a property?
Monica Falco: So, there are definitely some closing costs that you have to keep in mind. The first thing is an appraisal. Generally, all lenders do require an appraisal of the property, which can cost you between 350 to 500. And then you have to think about your closing costs. So, this would be like land transfer tax, your lawyer fees and disbursements, your title insurance, HST, and if you are purchasing a home with less than 20 down, you also have to pay your default insurance.
Q: If you already own a home and the bathroom needs to be redone, what are your options if you need to do a larger scale renovation on your home?
Monica Falco: I talk to a lot of my clients who are thinking about doing some upgrades to their home and you can definitely refinance your home if you have enough equity in it. So, lenders take a look at the value of your property, and then you have a couple of options. You can either look at doing a home equity line of credit against your property or you can refinance your entire mortgage. So, let’s say, for example, your mortgage currently is $400,000 and let’s say we’re able to refinance you up to $500,000. That gives you a $100,000 for wiggle room to put towards upgrades. I always like to say everything is based on qualification, so definitely talk to your bank and take a look to see what you can get for your home.
About Capital Home Lending:
Capital Home Lending is made up of a team of experienced mortgage specialists dedicated to ensuring their clients receive the best advice to make informed decisions. To learn more, visit the Capital Home Lending website.
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