Using a Home Equity Line of Credit for Home Improvements

Posted by Justin Havre on Thursday, August 16th, 2018 at 9:14am.

Making Home Improvements Using Your Home EquityIf you have equity in your home, you can borrow against some of that equity and invest the money back into the property through Calgary home additions and improvements. When home prices go up, your equity increases, and if your home is in desperate need of some upgrades, using that equity to do just that is a good option. 

For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any Cochrane real estate transaction.

What Home Improvements Have a Good ROI?

Your home is probably your largest asset. Using some of your equity to pay into that investment can give you a good return, but you must make sure you are investing in the right home improvements. For example, midrange kitchen and bathroom renovations and many exterior renovations have a good return on investment at resale, where major home additions and high-end remodels do not. Home improvements that do not have a good return on investment also include putting in a swimming pool or skylights. Even if the project doesn’t recoup much of it’s cost at resale, there is still value in your own personal enjoyment of your home and that should be considered.

Can Home Improvements Increase Property Value?

Some might think of home renovations like taking money out of one pocket and putting it in another. Depending on the renovation you choose, you could use your equity to increase your home’s value—taking money out of your home to put it back into your home! 

According to Remodeling’s Cost vs. Value report, the home improvement projects with over 90% return on investment include a garage door replacement, entry door replacement and installing manufactured stone veneer.  Renovations that can add 80 to 90% of their cost to your resale value include minor kitchen remodels and deck additions where improvements like a siding or window replacement can add over 74% of their cost to your home’s value at resale.  

A tastefully upgraded home also does better on the real estate market, compared to dated homes in the same size, type and price-range. Homebuyers are attracted to homes that have clean, smart curb appeal and modern upgrades. Your home renovations will make your home more competitive on the market if you decide to sell down the road.

What if I Want to Stay in My Home Indefinitely?

This is the main reason why you should consider a home equity line of credit for your home remodeling projects. If you don’t want to move or are having trouble finding the right house for you, you should make your home the most suitable for your family and lifestyle. Improving its function and aesthetic will make it more enjoyable for you to live in it, and investing in your quality of life is always worth it. Find inspiration for your home addition or remodeling project in this home renovation blog

For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any real estate transaction.

Justin Havre is a the top producing Realtor with RE/MAX First, Canada's very first RE/MAX Brokerage. Justin specializes in South West Calgary & North West Calgary Real Estate. Calgary Real Estate is his passion and you may visit our Calgary Real Estate or Calgary Realtor Blog or have Justin Havre can be reached at 403.217.0003 or contact through this site here

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