In an analysis published by the Dominion Lending Centres
, accredited mortgage professional Alisa Aragon stated that the current fiscal climate represents a unique opportunity for home owners to improve the value of their properties, as opposed to moving right away.
“With mortgage rates still sitting at historic lows, it makes sense to use some of your home equity to put towards renovations that could help you remain in the house you love, in the neighbourhood you desire that’s close to work, school and amenities to which you’ve grown accustomed,” Aragon wrote.
The future rewards would more than make up for any funds used in such a project, the analyst said.
“Other possibilities include a home equity line of credit (HELOC) – where you can access money as required for each stage of your renovation – or even a construction mortgage may be your best bet,” Aragon added. “The key is to talk to [a] mortgage professional who has access to multiple financial institutions and products to ensure you get the most bang for your buck.”
In an increasingly overheated market, renovating properties might be the best route that current owners can take to turn their homes into better long-term investments, according to an observer.