7 years after the Medina’s purchased their home they were ready to start renovations.  When they first purchased their Vancouver home they had the intention of renovating someday and they were now feeling comfortable to begin.

They hired a contractor:   Joe & Char were too busy to take on any additional work themselves so they sought out a contractor.  As they didn’t know one personally they had 3 come to their home to provide them opinions and they settled on one they felt the most comfortable with.  The contractor prepared the Medina’s quote based on the their wish list … they agreed to all details … and they were ready to proceed.

Savings:  They did have savings set aside however not enough to pay for the renovations in full and they wanted to retain those savings for emergency and retirement.  So the renovations would need to be 100% financed.

Income & Credit:  Both Joe & Char had full time stable income and were comfortable taking on additional financing.  They both had great credit as well.

Existing debt:  They had an existing mortgage on the property and both had some small unsecured loans.  That unsecured debt eventually would be included in the financing provided for renovations.

Real estate:  In the 7 years that the Medina’s owned their Vancouver house, the neighbourhoods home values rose significantly.  Once the renovations are completed their house value would increase even more.  There was enough property value to obtain the financing required.

In the end:  The Medina’s got the mortgage financing they needed to complete their home improvements.  They were provided the financing needed based on the quote provided by their contractor, plus we were able to provide them a buffer in case the project went over budget (which it slightly did).  They have a new pride over their home as the renovations came out just as planned.