There are financing options available that will assist you with building a much needed studio shed for working from home or for a multitude of other uses. A portion of the financed funds can also be used to undertake other home renovations such as outdoor living spaces, landscaping around your new studio, and interior renovations such as kitchens and secondary suites.
Here are two of the most widely used options:
1. Refinancing Your Home
- A lender will lend up to 80% of the value of your home.
- 80% is nice but what does that mean?
- What is your house valued at?
- Take 80% of that.
- Now minus how much your existing mortgage is.
- That is the amount that is available to you if you qualify.
- You can use those funds to build a studio shed.
2. Line of Credit
There are two options here.
- Option 1
- Refinance your house and include a LOC,(Line Of Credit), into it.
- Option 2
- Leave your existing mortgage as is and add a LOC behind your existing mortgage.
- A LOC is going to have a higher interest rate than your mortgage.
- Typically it is at a rate of PRIME +.50%.
- While this rate is higher than your mortgage it is by far lower than an unsecured LOC, (not secured to a property), or using credit cards to finance a home renovation project.
We highly recommend Mr. Geoff Lee of the GLM Mortgage Group for all of your home renovation financing needs.
Mr. Geoff Lee
GLM Mortgage Group-Dominion Lending Centres
1001 West Broadway #164
Vancouver, British Columbia
P: (604) 259-1486