How to Use Equity for a Home Renovation - reVISION Custom Home Renovations

reVISION Renovations Blog

All the latest news

How to Use Equity for a Home Renovation

April 23, 2013

Kitchen Renovation after photo

The decision has been made. It’s time to tackle that Vancouver home renovation project you’ve been dreaming about. You love your home as it is now but you would REALLY love it when you remodel your kitchen or bathroom. Now before you start asking for quotes from Vancouver contractors, make sure to take some time to review your budget and consider how you’re going to finance that kitchen renovation or bathroom remodel.

A home renovation, large or small, will determine the amount of financing you will need.  Most of us don’t have large piles of cash lying around but many have home equity. The question then becomes: what’s the best way to access that equity to help with your home renovation?

The following are home equity options which can be used in any combination:

  1. Secured line of Credit – a line of credit registered on title of your home comes with many benefits. You can draw monies from the line as you incur expenses and you can pay off at any time without any penalty. Your home renovation project will be stress free.
    There are some drawbacks to the secured line of credit which include its rate is generally higher than fixed mortgages, the interest rate fluctuates with prime and in rare cases, can be called by the bank on short notice.
  2. Mortgage loan – in the case of a clear title home, registering a mortgage can give you excellent cost certainty and affordable repayment terms. However, as soon as the mortgage is registered, you would immediately incur principle and interest payments even though your home renovation has yet to begin.
  3. Mortgage refinancing – if you already have a mortgage on your home, there is an option to add on without incurring any penalties. A mortgage refinance would carry all the same benefits and drawbacks as a new mortgage loan but there could be the potential of reducing your current interest rate with the increase and blend of the new monies at today’s rates.

Whether it be a major or minor home renovation, funding will be required. Speaking with a Mortgage Professional will help determine which home equity option is right for your situation. With the financing in place, contact a Vancouver contractor and let the dream home renovation begin! 

Mike Donovan

Mike Donovan


Mike Donovan has almost a decade of industry experience in Mortgage and Real Estate. He is the founder of BrokerSmart and co-owner of Verico Coastal Mortgages Inc. BrokerSmart simplifies life  for their clients by providing a one stop, multi service real estate solution.


Back to the Blog
  • I want to thank you again for the great service you have personally provided from start to finish of our project. It has been very much enjoyed and appreciated.

    I would be happy to speak with any future prospective customers on your and your companies behalf.

    Larry D, Vancouver
  • We have undertaken several projects over the past couple of years using your company’s services and have found you to be attentive to our needs and concerns, responsive to our requests, and as efficient as the busy construction industry can under existing conditions.

    Christopher T. Wilson – President, Faireharbour Strata NW 649, Tsawassen
  • When our renovations were complete, we were very pleased with the quality and detail of the work that had been done. Also the estimated time in which Todd quoted at the beginning was accurate.

    Peter M., Richmond
  • Todd is very organized and detail-oriented as well as being incredibly reliable…Todd represents a high level of professionalism within the work being done as well as on a personal level.

    David C., Vancouver
  • A special thanks is due to Todd for seeing to it that the work progressed efficiently, with materials and trades people arriving when needed.

    Doug & Lyn B., Langley
See More Testimonials
[instagram-feed id=4189217844 cols=8]