Home renovation is never cheap, so taking a loan may be a good idea to help you accomplish the project fast. Whether you want to add a home office, renovate your cooking space or revamp the whole house, it will cost a lot of money. Unless you have the money in your savings, a home renovation loan is the way to go and get the project started. But is it a smart move? Read on to know why you should consider getting a loan for home renovation.
Lower interest rate
A home renovation loan comes with a lower interest than a personal loan. It has a fixed interest rate and the repaying period is usually long. You renovate your house and repay the loan while you enjoy living in a beautiful space.
Less Paper Work
This loan doesn’t require a lot of paperwork. It is especially true if you have borrowed another loan from https://www.ocbc.com/personal-banking/loans/home-renovation-loan. Some lenders will conduct a thorough property verification of your property. But most of them will not take you through the process if they have your loan history.
You can borrow a home renovation loan to renovate your house. But in most cases, no one follows up to see which part of the house you renovate. You can extend your kitchen renovation to your balcony or bathroom. If you manage to save something, use it to improve any other part of your home.
Unlike when borrowing a personal loan, a renovation loan gives you more options because most lenders are willing to give secured loans. Your credit rating doesn’t matter because you have collateral. Besides, if your score is good, you can find a loan with a lower interest rate.
Benefits of renovating a home
- Renovating your home increases the value of your home. It helps you sell your home at a higher price because it impresses customers, who can easily imagine themselves living in the house.
- Renovation loans will help you achieve your goal if you want to refinance your property. https://www.ocbc.com/personal-banking/loans/home-renovation-loan increases your home’s value, making it easy to sell or refinance.
- Renovating your home on a low budget doesn’t give you lasting results. You will have to use lower quality materials, so you must renovate the same area in less than two years. A renovation loan adequately funds the project, and the results will last a long time.
- A home renovation increases your home’s aesthetic appeal and the whole neighborhood. A dilapidated home is not impressive and gives an imperfect reflection of your neighborhood. If you are the person that keeps their home looking great all the time through numerous renovations, your neighbors will like you.
Finding a home renovation loan is not hard. Several types are available to help you make your home’s significant repairs. However, note that a renovation loan is a debt that has to be repaid every month. It is a smart move if you have good plans on how to repay it without any problems.