Toronto, ON -- (SBWIRE) -- 05/03/2016 -- With real estate prices on the rise, a number of Toronto homeowners are choosing to renovate their current homes instead of upgrading to a newer or larger house. To fund these renovations, many are turning to personal loans.
To meet this need, the Mortgage Broker Store now provides home renovation loans in Toronto. This Ontario-based team of licensed mortgage agents is now able to help homeowners find lower-cost loans, specifically for completing improvements on their homes.
"Renovations can be a big win for homeowners," says Ron Alphonso, president of the Mortgage Broker Store. "Homeowners are happy since their homes now meet their needs. Meanwhile, when done right, renos help increase the value of a home. If the homeowners choose to sell in the future, their renovated home will bring in a better resale price."
Popular renovations for the Toronto area include finishing basements, updating kitchens, remodeling bathrooms and upgrading windows and doors. Once materials and labour are taken into account, these renovations can easily cost tens of thousands of dollars.
Despite the costs, homeowners are subsequently happier with their homes. Increased living space allows them to stay in their homes longer, and updated, luxurious finishes reduce the desire for a newer construction.
When it comes to larger-scale home renovations, most homeowners don't have the needed money saved in advance. Most Canadians turn to some form of financing to make the project a reality. Popular loan options include lines of credit and second mortgages.
Traditionally, a line of credit requires the borrower to pay interest payments on a monthly basis. The principal amount can be paid off at any time, giving homeowners greater flexibility. A second mortgage offers a more structured approach to loan repayments. Monthly payments include interest and principal, based on a pre-set amortization, like a conventional first mortgage. A licensed mortgage broker can work with homeowners to decide which option is best for the borrower's specific situation. Brokers can also work out the loan details and negotiate the best possible interest rate.
According to Alphonso, the trick to getting the best interest rate is to choose a secured loan when possible. Secured loans give owners access to the equity in their homes. "When borrowing against the value of a home, lenders take on less risk. They can therefore offer homeowners a much lower interest rate," says Alphonso.
When working with a mortgage broker, it's important to note that brokers don't directly bill their clients. Brokers are paid by the banks or lenders, either by finder's fee or by commission. However, mortgage brokers work for their clients, not the banks. It is a mortgage broker's responsibility to find the best possible loan for their clients.
For more information on all types of loans, including for home renovation purposes, contact the Mortgage Broker Store directly at 416-639-0786 or visit their website at www.mortgagebrokerstore.com
Mortgage Broker Store
License #: M11001286
Address: 100 Consilium Pl. Suite 200 Toronto, ON, M1H 3E3, Canada