A renovation loan is needed when you buy a home which needs to be remodelled or repaired. The lender allows you to borrow money for the repairs as a part of your first mortgage on the home. In this manner, you are able to start with the construction of the new house immediately after you are done with the loan application. It is also possible to take a renovation loan if you are looking to renovate your current house. Renovation Loans Singapore can help you with this.
There are several reasons to renovate your house, but most homeowners do so with an intent to increase their home’s value when selling. There are many financing options to help with the home renovation, but Renovation Loans Singapore can really boost your return on investment. Here are a few benefits of having renovation loans to support your needs.
Home renovation with financing is very cost effective
While you can easily use your credit card to pay for the home renovations, credit card interest rates can be really high. Making the payments annually can really harm your pocket. This may not be the case for small renovations, but when it comes to long-term renovations, credit-card financing can be tough. Here, Renovation Loans Singapore can be a better option. They are the more cost-effective solution as opposed to using credit cards.
Home renovation loans can easily boost up your ROI
Not only do the home renovation loans have lower interest rates when compared to other types, you also may receive tax rebates for qualifying home renovations. This brings the total cost of the project even lower than what it was previously. You will be able to easily repay the amount over a period of time – some repayment options provide periods up to 15 years. This makes the financing option of Renovation Loans Singapore an even better option. Getting a boost in the ROI of the house is an added advantage.
You get a larger tax deduction
When you apply for a renovation loan, there are chances that the interest, which includes the cost of renovation, will be tax deductible. This makes easy for the tax to be saved as you will be paying for the loan. This can be an excellent choice as you will end up saving your money and also getting your house renovated at the same time.