Thinking of adding or building on a garage
for your new car? Or perhaps it's time to
move the garden equipment into a shed?
Home renovation costs can
add up. You may need to finance the project.
But how?
You could borrow the entire amount at once
with a home improvement loan. That means
using a portion of the money to pay the
contractor's first installment, and then
tucking away the remaining amount until
the project is finished.
One problem.
The
amount you tuck away is costing you money.
Another problem is estimating the amount
to borrow.
What if the cost of the project goes up?
Or you decide to add some extra features?
Going back to the bank to borrow more
money can add to your total financing
cost.
There is a better
solution.
Use your home equity
line of credit to finance the project.
Take out of your account the exact
amount you need (up to your available
credit line limit), as many times as you
need — whenever you need — without
incurring access charges and loan processing
fees.
Pay the builder once, and then again
throughout the project by simply writing
the amount you need using your equity
line access checks.
And if you find that you need more money
for the extra features, no problem. You
can borrow again up to your available
credit line without speaking to the bank.
You will only pay interest on the amount
you borrow, which is much lower than many
other credit arrangements. And the interest
you pay may be tax deductible — additional cost savings. Speak with your tax advisor
to see if you qualify for the mortgage tax deduction.
You can set your own repayment schedule
by paying the minimum payment each month
or by paying a little extra.
It's
your choice.
Using your home equity line of credit
as a "Auto Buyer" and "Home
Renovator" gives you total flexibility
and control . . . cash as you need
it, when you need it.
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