What you should know about a home renovation mortgage
Besides the obvious advantage of having to pay little to nothing out-of-pocket for renovations to get your new home move-in ready, there are some other upsides.
- You may be able to make a smaller down payment than you otherwise could
- Your interest rates may be lower than with a traditional loan
- Your interest may even be tax-deductible
These are all great reasons to consider combining your mortgage and renovation costs. However, there are some downsides that you should be aware of too.
1. It can also be difficult to find willing contractors
Before the first draw with the bank, they’d need to front the cash for materials and labor, which many contractors are hesitant to do.
Luckily, with Curbio, this isn’t an issue. We defer pre-move-in home improvements until we finish the job, which makes it easy for any new buyer to update their new home. Renovation mortgage or not, we make it easy to get repairs done quickly so that you can settle into your home ASAP.
2. Getting your renovation mortgage loan approved can take longer than a traditional mortgage
This is due to a third party—a contractor—being involved. As mentioned, you need to source the contractor, make sure they’re approved by your bank, get the contractor’s bid, and wait for the lender’s offer. As a national company, Curbio’s a reliable source for pre-move-in updates and we provide quick and easy proposals to help speed this process up!
3. You’ll have to pay cash for any unexpected expenses or additions to scope
If you want to add to your scope of work or upgrade materials, unfortunately the added costs cannot be added to your balance with the bank. It’s best to put aside a little extra cash to avoid stressing over surprises and upgrades.