Why now is the perfect time to renovate your home—and add to its value
With a home equity loan from Alpine Credits, you can upgrade your living conditions and increase your home’s value
As the current global situation keeps us physically distanced from each other and the world outside, we’re focusing more on the safety and comfort of home life. Since we don’t know how long the current situation may last, some of us are looking to make our homes as comfortable as possible.
Many homes have an underutilized space, whether it’s a spare room, large attic, or unfinished basement, and there’s never been a better time to renovate that space and put it to use. A renovation won’t just make your living conditions more enjoyable, it’ll also add value to your home.
Of course, home renovations cost more than most of us have sitting around. One way to finance your renovation is by leveraging your home’s equity. Your home can be your best collateral: lenders view borrowing against it as low-risk, which means you’re likely to get lower rates—and make smaller monthly interest payments as a result.
There are other ways to save money during a home renovation too, such as taking advantage of home renovation tax credits. We asked Alpine Credits—a pioneer in the private lending market—to help us examine the costs of finishing a basement and advise us on the best ways to finance it. Here’s what they told us:
The costs of finishing a basement
Basement renovations are among the most common types home modifications in Canada. “Finishing” your basement can cost, on average, between $35 and $55 per square foot, depending on your planned usage. Obviously, turning a basement into a standalone living area with its own bathroom and kitchen will cost more than building a simple rec room or office space. A full basement renovation can cost between $22,000 and $82,000, depending on the size (square feet), while renovating your basement for use as a recreational or home office space is more in the $14,000 to $50,000 range.
The benefits of finishing your basement
Whatever way you decide to go, finishing your basement is one of the best investments you can make in your home. For one, it raises your property’s value, making it more attractive to a future buyer who won’t have to worry about doing the work themselves. Finishing your basement can also be a way to bring in a bit of extra income—up to tens of thousands of dollars a year!—by creating a standalone rental apartment.
Financing your renovation
Even a simple home renovation can cost more than most people have on hand. One of the best ways to finance it is with a home equity loan. Home equity loans are among the most popular means of financing home renovations. They work by providing access to the equity you’ve built up in your home over the years. This equity can easily be enough to cover the cost of your renovation.
Why use a home equity loan rather than putting the cost on a credit card or line or credit? For one, interest rates on a home equity loan usually are much lower. And taking out a home equity loan with a lender like Alpine Credits, instead of a traditional bank, can save you even more money. Plus, lenders like Alpine Credits don’t take your credit score into account—the main criteria is that your home has enough equity to cover the cost of the loan.
Unlike most home renovation tax credits, a home equity loan from Alpine Credits doesn’t come with a list of eligible and ineligible renovations. The equity you’ve built up in your home is yours, and you can use it as you see fit.
A home renovation is just one of the many ways a home equity loan can help change your life—and Alpine Credits is here to support you along the way. For more than 50 years, Alpine Credits has helped Canadian homeowners get the home equity loans they need, when they need it, regardless of their credit, age or income.
Contact Alpine Credits today to make your financial dream a reality.