Is A Home Renovation Really Worth The Debt Stress?Jul 21, 2017
Is renovating your home really worth adding more to your debt burden? Our recent poll shows that many Canadian homeowners think so. More than four in 10 homeowners planning renovations admit that they plan to take on debt to fund their upcoming home renovation project.
Not sure if you should be increasing your debt in order to renovate? Consider the following:
Is the renovation necessary?
This is the first question you should ask yourself – especially if you already have consumer debt. A leaky pipe or a new roof, for example, is something that requires immediate attention and may require adding a little to your debt in order to get the job done. New kitchen cabinets or granite countertops, on the other hand, are more about aesthetics and less about necessity. For any reno project that’s not a necessary repair, it may make more sense to wait until you can afford to pay for them with cash rather than relying on debt.
Does it fit with your financial plan?
An extensive home reno is a major commitment, so make sure it fits with your other financial priorities. Will you need to put less towards debt repayment or retirement savings because of renovation costs? Will you need to borrow to pay for renovations? Take the time to review your short and long-term goals. If you find that a home renovation may take away from other priorities, our advice is the same: consider putting it off until you have enough savings set aside to pay for the project without adding to your debt.
Will it add to your financial stress?
If you’re already stressed about the debt you have, adding to your debt through renovation costs doesn’t make sense. According to our poll, 13 per cent of Canadians are worried about not paying off their renovation debt as quickly as possible. Skip the stress and focus, instead, on fast tracking your debt repayment and increasing your renovation savings. You’ll be further ahead financially.
Will you make financial sacrifices in order to pay for a home renovation? Share your thoughts and join the conversation. #DebtSolutions #HomeReno.