As the Canadian real estate market shows signs of growth and sustainability, many homeowners are realizing that they are in the ‘seller’s market’.

A seller’s market is when the median home prices increase for both new and used properties.

This gives homeowners the leverage to sell their properties on profit, subsequently making it easier for them to purchase another property. Hence, if you are a first time home buyer in Montreal, Quebec, then you should know that the sooner you purchase a home, the better!

One thing that modern homeowners are now focusing on is renovation and remodeling.

Renovation allows a homeowner to increase the add-on value of the property, which makes it easier to sell the property for higher rates. Renovation is typically done through refinancing and renewal or mortgages. Let’s take a look at how we can renovate our existing homes through refinancing!

Your Current Financial Situation

Since you are already on a mortgage plan, your current financial status will have to be addressed to make sure that you can get mortgage renewal. Typically, homeowners seek mortgage refinancing to lower their interest rate or their mortgage payments altogether. However, in renovation, you shouldn’t expect to seek, let alone get these types of mortgages.

To renovate your home, you will have to show that your financial status is still positive despite the mortgage plan that you are currently observing. You will have to have healthy employment status, good debt to income ratio, and should have proof that you made all the mortgage payments on time. This can really help improve your chances of seeking mortgage refinancing.

Your Prospected Renovations

Do you know what banks love?

They love to invest in properties that are lucrative, and a proper renovation plan can help you make sure that your bank looks at your property as a viable investment. For instance, if you plan to change the structural integrity of your property to allow more room in the washrooms and kitchen, and intend on incorporating a home décor theme, you can turn your property into a hotcake for the banks. This is because once the renovation work has been completed the same property would have significantly increased in value.
If you are looking for refinancing on your mortgage, then you should consider approaching your mortgage lender with the prospected renovation plan. This will give your mortgage lender a fair idea of the cost of renovations, the timescale, and the most appropriate refinancing plan for your mortgage.

As a practice, make sure that you prepare a comprehensive renovation plan as it can make the difference in whether you can secure refinancing on your mortgage or not.

As the Montreal and Quebec housing market looks to heat up for the second quarter of 2015, it is time that you have a look at your property and address the aspects that can be enhanced. Even a light renovation job can actually make your property more attractive to invest in. Find out more about refinancing, renewal, and securing the best mortgage rates in Quebec with us!