Looking To Pay For Those Costly Home Renovations? Here’s How To Do It The Right Way

Home renovations are booming. PennyGem’s Elizabeth Keatinge tells us some ways you can pay for them.

Transcript

00:00 (upbeat music)

00:02 So you've been home for the last year, right?

00:07 Perhaps you've noticed some things in your home

00:09 you'd like to improve,

00:10 or maybe your priorities have shifted

00:11 and now you are in need of a home office with a strong door.

00:15 You're not alone.

00:16 NerdWallet's 2020 Home Improvement Report

00:18 says that pandemic home renovations are booming

00:21 and people are using savings to pay for them.

00:23 CTV reports that throughout North America,

00:25 home gyms and theaters, office spaces,

00:28 and outdoor entertainment spaces are popular

00:30 on the list of home renovations.

00:32 According to Bloomberg,

00:33 strong demand has lumber prices increasing 40%.

00:38 So how to pay for that home gym?

00:39 MarketWatch suggests cash is best.

00:42 If your project is $50,000 or more,

00:44 certified financial planner, Sarah Ponder,

00:46 tells MarketWatch that a cash out refinance is an option.

00:49 This is where you replace your existing mortgage

00:52 with a larger one and use the extra money to renovate.

00:55 If the project is 20,000 or less,

00:57 certified financial planner, Tess Dowling,

00:59 tells the site that a personal loan could work.

01:01 There's also plenty of DIY options.

01:04 Changing light fixtures or paint

01:06 may bring your space the upgraded look you want.

01:09 (upbeat music)