As we march towards the second half of 2022, there is a glooming cloud of economic tension above Canadian homeowners. With rising real estate prices, a 7.3% inflation rate (highest point since 1983) and an after effect of a global pandemic, more and more Canadian homeowners are looking to invest in their current homes. Despite the increase in building material costs and interest rates going up, Canadian homeowners are still interested in upgrading their properties considering the high ROI they will get in future. As per our Reno Report 2022, 27% of homeowners reported that they need financing help to complete their home renovation projects.
If you want to go ahead with your home improvement plans but are looking for a financing solution, we have introduced the HomeStars + Perch Refinancing option. With Perch, you can lean on unutilized home equity to fund your reno projects and spread their cost over the mortgage term. This typically offers a significantly lower monthly payment.
Here are the top 3 projects you can get Perch Refinancing for:
1. Multi-generational Home
Canadian millennials want to move out of their city condos and into suburbia, ignited by pandemic-related work-from-home shifts. But the problem is, that the housing supply can’t keep up. A recent report showed that Canada’s housing stock would need to climb to over 22 million units by 2030 to achieve affordability for everyone living in Canada. That’s why many Canadians desiring to be homeowners have no choice but to get a fixer-upper.
This creates a big need for renovation projects that will accommodate multiple generations in one house. As a homeowner, you can create an in-law suite in your basement, convert your garage into a home office and turn your library into a nursery. You can also turn leisure rooms such as the sunroom into a dedicated study space for kids attending classes from home. Multi-generation homes have become a necessity in the given market and with Perch refinancing, you can bring it to reality.
2. Reinvestment Projects in Your Current Property With Renovations
Selling your property in a volatile real estate market is not always a good idea. Instead, you can make additions to your home so that when you decide to sell it in future under good economic conditions, you can get the best worth of your house. As per our recent Reno Report, 84% of surveyed homeowners in June are planning to stay in their current homes and renovate over the remainder of the year. It can be a renovation project for your current residential property or your rental property to generate additional rental income in view of higher mortgage payments stemming from a higher interest rate. This means industry professionals who specialize in different renovation projects are getting booked faster than anticipated. If you are planning to reinvest in your property by upgrading your bathroom, kitchen, flooring or deck, make sure you hire a reputable local pro sooner rather than later. If the cost of projects keeps you from booking them, use the Perch refinancing calculator for refinancing options.
3. Age and Accessibility-Friendly Home
Riding on the trend of multi-generational homes and after the repercussions of a global pandemic, more and more Canadians are choosing to age in one place. They are updating their current homes to be more age and accessibility friendly. Whether you want to install a home stair chair, upgrade your bathroom with bars and anti-slip flooring or get the smart home system installed, a local pro can help you with all these projects. You can get quality work done through vetted professionals with a lower financial impact on your monthly budget with the Perch Refinancing option.
Don’t let big costs stop you from achieving your dreams. You can get second mortgage options to leverage home equity without breaking your first mortgage. You can access the Perch refinancing calculator to help understand the borrowing power while starting a HomeStars service request. After entering your current property value and mortgage information, you will have the ability to view the results and either begin the pre-approval process or chat with a Perch advisor. Once your loan is finalized and you are matched with a verified pro, you can leverage the funds towards your dream home project with a reputable pro.