After a long dark winter the summer sun finally shines into your home and you realize...you need to renovate! Summer does sound the start of home improvement season and you do have some options when it comes to financing.

You can use your home equity to further invest in increasing your property value.   Coffee News consulted with Kris Crawford from Innovative Mortgage Solutions in Sherwood Park to learn more about refinancing mortgages or taking out a line of credit from your equity.

"The first step would be to get your property appraised to determine its value," said Crawford. "That would be a part of your application."

As a home owner with equity, you have options. Many lenders are offering products that combine both mortgages and a line of credit.

"If you take out $50, 000 to do renovations from your equity, some lenders will let you borrow it from a line of credit. Instead of paying a credit card interest rate of 18 percent, you could be paying something like three percent," said Crawford.

The advantage is that you would not have to take out the full amount at the beginning of your renovations and start paying interest on it. You can take it out in increments over a period of time. Once your renovations are complete the amount owing can be bundled up with your mortgage at a lower interest rate and with comfortable payments.

"It's important to consult with an appraiser while you work with a mortgage broker when trying to arrange financing. An appraiser will tell you which home renovations will give a greater return on investment than others, give you a good focus and help you add value to your property." Crawford continued, "Kitchen renovations can recuperate 100 percent of money spent, whereas a bedroom renovation might not increase your equity as much."

For more information contact Kris Crawford at Innovative Mortgage Solutions. Visit www.innovativemortgage.ca.