Putting
the 'Spring' Into Your Home – Home Renovations
Posted by:
Diane Alvernaz
At DLC
Metro City Mortgages we get
many clients who call us looking to refinance their property to help
them pay for home renovations
As spring time rolls around, home
owners inevitably start to look around at their homes and consider
what improvements they might make next. Whether you’re looking to
add to the value of your home, or you’re just looking to enjoy a
makeover, a home renovation might make sense for you.
According to the CMHC, over 36% of
home owners renovated their homes in 2011 (spending an average of
approx. $14,000) & 37% of home owners indicated that they
intended to undergo a home renovation in 2012 across the 10 largest
urban cities in Canada
In order to finance your home
renovation of choice here are the basics you should know:
Consider the Type of Home
Renovation
Home Renovations Typically Fall Into
Three Segments:
Lifestyle renovations:
- these home renovations improve your home and your way of life, ex; building a sun room for pleasure, or converting unused attic space into living quarters to meet your changing needs.
Retrofit projects:
- these home renovations focus on your home’s shell or mechanical systems, Ex; upgrading your insulation, replacing your furnace, or putting on new siding.
Maintenance and repair
renovations:
- these types of home renovations protect the investment you have made in your house, ex; caulking windows, re-shingling your roof, or replacing your eaves troughs.
- Decide what kind of contractor you need:
A general contractor manages the
project, hires the tradespeople and takes care of the permits. If
it’s a smaller job, choose a specialized contractor who handles
specific projects (like bathrooms or windows) and does the work
himself.
- Interview and get quotes from at least three:
Ask about experience, talk to past
clients and visit past projects. Make sure each contractor has a
license, liability insurance, workers’ compensation insurance and a
clean Better Business Bureau record. Then ask for a detailed plan,
including timeframe and cost.
- Get everything in writing:
Include a list of materials and
brands, labor to be performed (is site cleanup included?), warranty,
permit obligations, and how client changes will be handled.
- Agree on a payment plan:
Include down payment amount (anything
under 15% is reasonable). Work out a payment schedule and make sure
payments sync with the work that’s been done.
