Home Renovation

Many Canadian homeowners are looking for ways to reduce their utility bills and environmental impact. Small changes like using fluorescent, energy-saving light bulbs or participating in a recycling program are a good start. If you’re looking to make a bigger impact on home energy savings and improve your home at the same time, consider these three environmentally friendly home renovations and upgrades.

1. Replace old appliances with new, energy-efficient ones

Using an old refrigerator, dishwasher, clothes washer and dryer can run up your energy bill while creating more waste. Their older systems, bigger motors, and wear and tear cause them to consume a lot of energy. If your appliances are at least 10 years old, they’re very likely big energy drains. Even if they still work, they don’t work as well as newer, energy-efficient models.

As your appliances age, shop for new ones that come highly rated by EnerGuide. Sometimes stores will help you recycle your old appliance or even offer a slight discount on the purchase of a new model if you’ll be getting rid of an old clunker. So, while there is some upfront cost to upgrading your appliances, you can expect your gas and electric bills to decrease, resulting in home energy savings over time.

2. Update your home’s insulation

In Canada, there’s no escaping the cold. For the owners of older homes, the low temperatures can often translate into sky-high heating bills. A big culprit here can be old insulation. Today’s fiberglass materials are much more successful at regulating your home’s temperature. Additionally, old insulation can crumble or compress, becoming less effective over time because it no longer seals your house against the elements. If your home’s insulation is 15 or 20 years old, it may no longer be performing effectively.

If this is the case, contact insulation contractors. They can safely remove old insulation and install new fiberglass insulation, which will last for dozens of years. While you’re assessing your insulation needs, you may also want to pay special attention to rooms like the attic, sunroom and additions. If they were never insulated or properly sealed, they can allow a lot of heat to escape. Have the contractor inspect those walls and ceilings as well.

3. Invest in new windows and doors

Following the upgrade to your insulation, investigate replacing old windows and doors. The outdated technology of storm windows has given way to new, energy-efficient windows that reflect sunlight in the summer and block cold air in the winter. They also seal tightly to avoid air leaks. Another perk is that new windows have better locks and are more secure.

Doors can have many of the same problems as windows. Old doors, especially wooden ones, will expand and contract with the weather. Over time, this means they won’t seal as tightly as they once did. If they contain glass, they may have only a single sheet, which does a poor job of keeping the heat inside. If you stand next to your door in the winter and feel a cold draft coming from underneath or around it, you know your door isn’t saving you money on home energy.

Get quotes from several companies that sell windows and doors. Compare their products to find units that are more energy-efficient than your current windows and doors but also fit your budget. In the long run, you can reduce your heating bills by as much as 10% or 15%. If the costs of replacing all the windows and doors at once is too steep, you could consider doing it in phases by replacing those that the face the street all at once or perhaps just the first floor.
 

Start renovating your home to be more eco-friendly

To get home energy savings, consider taking out a CIBC Home Power Plan^®, which gives you access to ongoing funds, or a personal loan. Both can be secured, which allows you to borrow more at a lower interest rate. Plus, a line of credit can be accessed through debit cards, online, bank machines and more, so it’s there whenever you need it.

With flexible repayment terms and competitive interest rates, you can add resale value to your home with these renovations while saving money on your home energy bills. If you have questions about your loan options, you can call a CIBC advisor at 1-866-294-5964.

Renovations not only breathe new life into your home, they also increase the resale value of the home. If your desired renovations are going to tally thousands of dollars, consider a loan or line of credit to help cover these expenses.
 

Types of renovation loans that are available

The lending option you need depends on the renovations you’ll be performing. Loans are generally better suited for one-time use. For example, installing a slate roof, adding a family room, or building a new garage is an isolated project. On the other hand, plans to re-do the kitchen and the bathrooms over the next year will be ongoing, so you may be more interested in a line of credit. Here’s a snapshot of how each option works.

Loan: A personal loan provides you with the funds you need to make a large purchase while giving you a lower interest rate than a credit card and a set timeframe in which to pay off the loan. You can secure your renovation loan using the equity in your home as collateral, which may make you eligible for an even lower interest rate. Loans are also somewhat customizable in that you can select your preferred interest rate, whether it’s fixed or variable, as well as your preferred repayment plan.

Line of credit: If your renovation plans are ongoing, look into either a personal line of credit or the Home Power Plan^®. Both of these products allow you to borrow money and repay it as necessary.

You can think of a line of credit as being similar to a credit card. Once you have access to the funds, you don’t have to reapply each time you want to use them, plus a line of credit will give you a lower interest rate. This makes it a more flexible solution because even if you don’t know exactly how much you’ll need for a certain project, you’ll have peace of mind knowing it’s available to you when the time comes.

With a line of credit, you also have the option of securing it and lowering your interest rate by using your home as collateral. Plus, you can take out money on your line of credit from your debit card, bank machine, online and more.
 

Maximize your loan with these renovations

With your financing in place, it’s time to prioritize your desired home renovations. Your loan or line of credit is better spent on some renovations than others. Consider making these enhancements to your home to both improve its comfort and resale value:

• Update your bathrooms: Make your bathrooms contemporary with new fixtures, a low-flow toilet, space-saving cabinets, fresh paint and new tile. Remodeling bathrooms can have a 56% higher return on investment than average renovations.
• Expand the kitchen: If you have a small galley kitchen or a kitchen that’s poorly laid out, invest in updated cabinetry and appliances. You could see an ROI from your work here that’s 44% higher than average.
• Replace the floors: Hardwood floors are a major selling point in homes. If you have them, invest in refinishing them. If you’ve got tired carpet on top of nice floors, rip that out and spruce up the floors.

On the other hand, you may want to reconsider the following renovations. They generally don’t fetch much more when selling your home.

• Landscaping: While improving your home’s curb appeal can help you sell it, going overboard can work against you. If you create a garden that looks complicated and the potential buyer doesn’t have a green thumb, it may be off-putting.
• Adding a swimming pool: This luxury item is a nice touch to your home, but only if you’re committed to all of the work and maintenance.
• Adding skylights: If you want to add more light to a room with a skylight, bear in mind that buyers are unlikely to pay a premium for this feature.
   

Apply for a renovation loan or line of credit with CIBC

Get your home renovations underway with a personal loan, line of credit or Home Power Plan^® from CIBC. You can also learn more about these products and your options by visiting a CIBC branch or reaching out to a CIBC advisor at 1-866-294-5964.

The Home Renovation Tax Credit (HRTC) was a tax break available to homeowners who made eligible improvements to their homes. Eligible expenses included the renovation of kitchens, bathrooms and basements; updating heating and air conditioning systems; replacing old doors, windows and flooring; and many other home improvements.

This renovation credit is no longer in effect, but there are still financial options available to you if you’d like to start renovations.
 

When did the HRTC expire?

The HRTC was only available during the 2009 tax year. Homeowners who made improvements to their houses, condominiums, townhouses or cottages were eligible to claim the HRTC. The renovations, remodeling or other qualifying work had to be performed between January 27, 2009, and February 1, 2010.
 

Other options now that the HRTC is no longer available

Home renovations can certainly be costly, and the home renovation credit helped to alleviate some of those costs. If you need some financial assistance to undertake a remodeling project, there are still loan and line of credit options available to you.
 

• Home equity line of credit: If you’ve owned your home for several years, you’ve built up equity by making mortgage payments. Take advantage of that equity by applying for a CIBC Home Power Plan®. You’ll enjoy low interest rates and a reusable line of credit that lets you make major purchases like flooring, new doors and windows, drywall and other new fixtures. Plus, you can take out money on your line of credit from your debit card, bank machine, online and more.
• Personal loan: If you don’t have much equity available, you might consider a personal loan. The funds can be used for anything, including home improvements. You can choose your preferred repayment plan as well as whether you’d like a variable or fixed interest rate. You can also secure your loan, and benefit from a lower interest rate and a higher credit limit.
• Personal line of credit: On the other hand, you may prefer a reusable line of credit to make home improvements. After all, remodeling can be an ongoing process. With a line of credit, you can borrow and repay the funds as you need them. Once you apply, you don’t have to reapply.
   

Work with CIBC on your lending needs

You can fill out a loan application online, stop into a CIBC bank branch, or speak with CIBC advisor at 1-866-294-5964.