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Borrow to Renovate?

Interest rates are terrific right now.  Current news reports say that they will remain low for at least the next couple of years.  This is great for Canadians who need to finance in order to purchase new homes or for those that need to borrow to renovate.  The question is, should you borrow in order to renovate your home?  Critics claim that the low interest rates entice Canadians to borrow too much and incur unreasonable consumer debt.  Consider the following:

Do not rely on renovations to immediately improve the resale value of your home.  Try not to have to use your home as collateral for your renovation loan.  Ensure that your contractor gets paid incrementally for work being completed to ensure you get what you are paying for in the long run. 

So renovate away, but be responsible with your dollars!  Thanks for reading!

By Patrick Murray