Small renovation loans are a great option if you want to change out bathroom fixtures or refresh your tired home. They can also be an excellent solution when you want to give an investment property a cosmetic makeover so you can rent it or flip it.
Unfortunately, not everyone has access to loans through traditional financial institutions. Other people don’t want to use a line of credit, because they find it difficult to control their spending. Still others worry about interest rate hikes that would make a line of credit very hard to repay.
Luckily, renovators have another option – small renovation loans. Here are a few reasons why you might want to use one and why FlexMoney is your best choice as a lender.
No Lien on Your Property
There’s no shortage of home equity loans available for renovations. However, using the equity in your property for a loan also means you put it at risk.
The lender puts a lien on the property title as a guarantee they’ll get their money. Should you default on your loan, the lender could initiate foreclosure proceedings, even though your loan is worth far less than your property.
This is such a serious consideration the Government of Canada warns borrowers about the potential of losing their property if they choose a home equity loan.
If the pandemic has taught us anything it is that no one knows what the future holds. It doesn’t make sense to risk a major asset when you can use small renovation loans instead. These loans do not use your home as collateral.
Easier Loan Process
If you’ve ever applied for a loan through a traditional lender, you already know how time-consuming and complicated it can be. You can multiply this complexity by manyfold when it involves property.
Firstly, the lender will want a property appraisal to see if the value merits a loan. Secondly, they will want to see quotes from contractors for your proposed project. Then there’s the complications of checking your credit, verifying your income, and reviewing your work, home, and banking stability. You will go through this process, even if you only want to borrow a relatively small sum.
Should you choose to take out a second mortgage or refinance the property to access renovation cash, you’ll face even more hurdles. You may need a property appraisal, title search, title insurance, and a lawyer. Considering the way interest rates are moving, you’ll probably pay a higher rate too.
Luckily, small renovation loans through FlexMoney offer a better way that doesn’t involve appraisals or legal fees. They’re fast, efficient, and handled online.
Simple Application Form
We already discussed the complexity of the application process through a traditional lender. However, we also want you to consider how much information they want from you.
Many lenders delve into years of your banking, work, and residence history. Their application form is very detailed and it can take a long time to complete.
However, small renovation loans don’t require this much information. Usually, you can complete our application form in less than 15-minutes. This is because we are only interested in your recent financial position, not what happened years ago. Apply any time from any device. We accept applications 24/7.
Digital Income Verification
We will never ask you to provide proof of income. Consequently, you won’t need to upload pay stubs or a letter from your employer.
Instead, we verify your income electronically through bank statements. Your data is encrypted and we can’t pry into your personal affairs. We’re only concerned with your steady income through direct deposits. Income sources considered include regular employment, self-employment, and pensions.
Less Stringent Qualification Requirements
Another problem with loans through traditional lenders is they rely very heavily on your credit. Unless you have a great credit score, they will probably turn you down.
These lenders usually use a “hard” credit inquiry too, which lowers your credit score. This applies whether you’re approved or turned down. Each hard inquiry remains on your credit file for up to three years.
Luckily, small renovation loans through FlexMoney place less emphasis on your credit. Instead, we use an artificial intelligence assessment which gives us an overview of your financial position and your ability to repay your loan. We also use a “soft” credit inquiry, which does not lower your credit score.
Fortunately, many people that struggle to get loans through banks are approved for small renovation loans. Of course, FlexMoney can’t guarantee approval, but the process increases your odds greatly.
Yet another reason why you may want to choose small renovation loans is the time it takes traditional lenders to make a decision. Even after you’ve jumped through all their hoops and provided them with reams of paper, they make you wait.
Your application could be at the bottom of a pile that the loan officer must work through. Sometimes this takes days or weeks. The worst part is they could turn you down after all that waiting.
Fortunately, small renovation loans through FlexMoney work differently. We provide you with our decision within minutes. If pre-approved, it is also very easy to move forward. All you need to do is accept the terms, which sets the loan contract process in motion. We prepare your loan contract, send it to you, and you sign it digitally.
No Restrictions on How You Use Funds
We mentioned that many lenders want quotes on your specific project. This may not seem like a big issue, but what happens if you want to switch things up? You may have to advise them and get another set of quotes.
Luckily, this isn’t the case when you choose one of FlexMoney’s small renovation loans. Just choose your loan amount, payment frequency, and how long you want to take to repay. We fund any renovations between $500 and $15,000, without usage restriction. These are just a few of the ways you could use our loans:
- Install new granite countertops in the kitchen
- Replace the tub with a new walk-in steam shower
- Repaint your home, inside and out
- Upgrade the electrical panel to 200 amp
- Put new shingles on the roof
- Build a home office
- Landscape the property for better curb appeal
- Build a carport, garage, or shed
- Replace the deck or patio
- Repave the driveway
No Unnecessary Fees
Many lenders charge unnecessary fees and try to make them seem accepted charges. Two of these include an origination fee for setting up your account and a pre-payment penalty if you want to pay more.
Luckily, you never need to worry about either when you choose FlexMoney for small renovation loans. We welcome extra payments at any time and setting up your account is our administrative cost, not yours.
Small renovation loans through FlexMoney are available from $500 to $15,000. We also offer repayment terms between 6 months and 5 years. This flexibility makes our loans perfectly suited for many needs.
For instance, you may want to flip a home. You could easily access cash for renovations and pay your loan off in six-months when you sell the home.
Conversely, you may want more affordable payments spread out over years. Our small renovation loans offer a fixed interest rate and payments. We charge simple, not compound interest like you would pay on a credit card. Every payment reduces your balance and you do not pay additional interest on the balance outstanding.
Fast Funds Release
Unfortunately, many lenders don’t release funds straightaway once you’re approved. In fact, you could wait days. Obviously, this can be very frustrating when you just want to get on with the work.
Fortunately, small renovation loans through FlexMoney are fast. We usually have the money in your bank account in 24 hours, or less, after you sign your loan documents.
Basic Requirements for Our Small Renovation Loans
FlexMoney believes it is only fair you should know what we need from you before you spend time filling out an application form. Here are our basic requirements for our small renovation loans:
- Canadian citizen
- At least 20 years old
- Minimum net monthly income of $2,000 from the same source for at least the last 3 months (We consider income from employment, self-employment, and both public and private pensions)
- Active cellphone number for identity verification
- Valid email address
- Active account with a Canadian financial institution with at least three months of transaction and banking history.
Sorry, we are unable to help those who are currently involved in a bankruptcy, consumer proposal, or credit counselling program. We cannot consider income from Employment Insurance (EI), Disability Benefits, Canada Child Benefit, Student Aid or COVID-19 relief benefits either.
Find Out More About Our Small Renovation Loans
We offer outstanding customer service, a comprehensive FAQ section, and one of the easiest loan processes in Canada. FlexMoney operates in Ontario, British Columbia, Alberta, Nova Scotia, Saskatchewan, Newfoundland & Labrador, Prince Edward Island, and Yukon Territory. Get your small renovation loan now.