If you are thinking of renovating your kitchen, besides choosing different colour schemes and cabinet styles, there‘s one question that is probably on your mind: how much will the entire renovation project cost? From flooring and wall paint to countertops and a backsplash, a kitchen renovation is a big investment, and you certainly don’t want your dream kitchen to put you in a difficult financial position.
If you happen to live in Toronto, this question has probably crossed your mind because the kitchen renovation cost in Toronto is extremely high.
However, lucky for you, there are some great options related to kitchen renovation financing in 2020.
Apart from the dramatic shift in the use of simple, pastel colours to bold colours that command attention in kitchen remodeling projects, something else related to these projects has shifted dramatically; financing options for kitchen renovations.
It is much easier to get loans and financing for home projects in 2020 because financial institutions like RBC (Royal Bank of Canada) have a variety of financing options related to renovations to help you achieve your goals.
Types of Financing Options
Before suggesting a solution for your kitchen renovation financing, the bank first considers the type of renovation you are proposing, its estimated cost, the amount of money required, repayment time/duration and other factors.
From the bank’s perspective, there can be different kinds of renovation projects; some are more pricey because they require high-end materials and changes while others are quite basic. The first thing a bank or lender will do is determine approximately how much your kitchen renovation is going to cost,and then decide how much they are willing to lend you.
Similarly, the type of financing that you choose has a lot to do with the kind of renovations you desire for your kitchen.
In the case of RBC, there are four different types of financing options that we will discuss below.
1- Extensive Home Project
This option includes solutions like kitchen renovation mortgages, credit lines, homeline plans, and mortgage refinancing to support a larger project.
2- Mid to Large Home Improvement Project
For renovation projects that cost over $5,000, the bank will likely suggest personal loans and/or a line of credit.
3- Small Home Improvement Project
This solution applies to projects that cost less than $5,000; financing solutions like cash back, credit cards, and rewards are viable options.
4- Green Home Improvement Project
Lastly, this option is for peoplewho wish to install energy efficient appliances in their homes. If you plan to make your home more energy efficient, you can apply for energy saver loans, mortgages and homeline plans to offset the cost of the renovations.
Apart from financing options offered by banks in Toronto, there are many other opportunities
for your kitchen renovation financing through the government that you can use to your
advantage, such as:
- Rebate programs
- Tax credits
- Other home renovation-related incentives
To confirm your eligibility for financing through government incentives, you will need to spend some time doing some research related to your specific project and available programs.
Renovation projects have certainly become much easier in recent times due to the various financing sources available to help you create the home of your dreams. Visit us to speak to a kitchen designer to provide information about financing options related to your next renovation project.”