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Value Add Home Improvements

If you have the funds to perform improvements on your home, you want to also consider the long-term payback in terms of increase in value and payback when you sell. So, what improvements get you the best return?

 

Adding Square Footage – although a quite significant project both in time and money, this can return between 50-83% of the initial investment.

 

A Deck – adding this brings more use and appeal to the outdoor space, and can return between 65-90% of initial investment.

 

Kitchen Re-Model – there is a sweet spot here, extremely niche styles with million dollar price tags don’t return. However, quality timeless appliances and finishes can get you a return between 50-120% of initial investment.

 

A New Bathroom – adding a bathroom, especially to a one bathroom home (typically older homes have a shortage of bathrooms) can return 80-130% of initial investment.

 

The most important thing to consider is who your future potential buyers may be. Make improvement that will be generally seen as increasing the appeal and livability of the home.

How Mortgage Brokers Get Paid

Firstly, here at Prime Mortgage Works, we do not charge any retainer or upfront fee for our services. Actually, you don’t pay any fee directly to us for our services, ever! Yes, 100% free, no pressures advise! We are licensed professionals and are governed by provincial bodies, who have you, the clients, best interest in mind.

 

The lender pays us, once your purchase or refinance has completed and you have received your mortgage funds. How do we choose which lender? We take into account many features of a mortgage and your specific needs and wants to advise on the BEST option for you.

 

But, rest assured that it is our mission to guide you through the entire financing process. We are always happy to answer any questions, anytime, whether you have just completed financing, or are three years into your term and considering accessing some of the equity in your home.

Home Equity

Many people find that one of the easiest and most affordable ways to access money is through the equity that they have accumulated in their home. This is a very popular option, especially when you have an excellent first mortgage in place.

Canadians purchase homes for a variety of reasons. Some want the stability of owning their own home, while others also look at home ownership as an investment vehicle. No matter what the reason, the truth is that home ownership has proven itself to be a good stable investment over time, and one which many Canadians are profiting from.

Putting Your Home Equity to Work For You
While many people have chosen to purchase their first home during these times of lower interest rates, there has also been a large movement to refinance home loans and pull out equity for home improvements, investments, college expenses, and even high interest debt consolidation. Canadians have been borrowing against their home’s equity in record numbers, taking out billions of dollars in cash each year.

In years past, many saw their homes as a shelter of safety, yet today, they are more willing to borrow against the equity owned in their homes to further their investment portfolios, get out of debt, send their children to university, make improvements to their home, or even boost their RRSP contributions. Where home equity was once sat upon, today it is often used to one’s advantage.

While removing equity from your home can be a good idea, you should do so with caution and fully understand the benefits and possible risks.

The best thing you can do is to consult a licensed mortgage broker professional and financial planner to discuss opportunities to make your home’s equity work for you.