Table of Contents
- Home Renovations Loans Add Value to Your Home
- Money-Lending Options in Ontario
- Benefits of a Home Renovations Loan
Home Renovations Loans Add Value to Your Home
You may have considered completing the basement to create a home office. The demand for a home office is stronger than ever these days, as many homeowners work from home and businesses consider lowering in-office hours. Your backyard may have the need for landscaping and modernization. Your kitchen may also need a makeover.
No matter what repairs or improvements a homeowner is thinking about, there is always something that must be done. How are you going to pay for a home renovation? For homeowners with bad credit, the question of how to get a loan to pay for house renovations also comes up.
Second mortgage loans for home renovations can cover the costs by letting you use the equity you already have in your home. Borrowers with bad credit can also work with private lenders to find options with private mortgage loans. With a private home renovations loan, you can use the value of your home to pay for any updates or improvements you want to make.
Money-Lending Options in Ontario
If a homeowner has bad credit but knows how important it is to make repairs to their home, there are ways to borrow money to pay for these repairs. The mortgage industry in Ontario tends to divide lenders into three main groups:
- The largest banks make up the first group of lenders. For a bank to give you a mortgage loan, you need good credit, an easy-to-calculate annual income, enough extra money, and a low debt ratio. Lenders put homeowners/borrowers through strict mortgage stress tests all the time. Recently, these tests became even stricter.
- Trust companies and credit unions make up the second group of lenders. Even though their lending requirements are less strict than those of “A” lenders, they still require a credit score of at least 550 and prefer a household income that is easy to figure out (and any other financial assets).
- The third group of lenders is made up of private lenders. An Ontario-based private lender can help people who don’t have good enough credit to get loans from “A” and “B” lenders, but have good enough credit to get loans from a private lender.
At Amansad Financial, we can help you get a short-term loan for home repairs or point you in the direction of a good private lender through our network of private lenders. These will look at all types of monthly income, not just credit problems. This includes income from investments, self-employment, contracts and freelance work.