The best renovation loan is the one that suits your needs and offers the best options. However, dozens of lenders exist in Canada, both on and offline.

So, how do you sort through these lenders quickly to find the one best for you? And how do you sort the bad and mediocre renovation loans from the best renovation loan in Canada?

This guide offers some of the questions you should ask yourself to determine which lender and which loan suits you best.

Are You Willing to Use Your Property as Collateral?

This is an important question since many lenders only grant loans on the equity in your home. Equity measures the difference between what you owe on your mortgage and the current value of your home.

Examples of using your equity in your home to get the money you need for your renovation include obtaining a:

  • second mortgage
  • home equity line of credit (HELOC)
  • installment loan secured with your home
  • reverse mortgage (55-years of age or older)

It may appear you have plenty of options, but all these use your home as collateral. The lender places a lien on your property to ensure they’ll get their money.

You may also need to get an appraisal, title search, title insurance, and a lawyer, which all cost money. They may also want you to submit quotes from contractors for your project.

Additionally, some of these equity options such as a HELOC, reverse mortgage, and second mortgage usually do not have fixed interest rates. If interest rates rise (which may happen soon since they’ve been low for so long) payments could become unaffordable.

If you’re not willing to risk your property or you don’t want to go through all the fuss, you may want to consider “unsecured” options instead.

Are You Looking for a Better Option Than Credit Cards?

Credit cards are great when you can pay off the balance before the next bill. However, when you carry a balance into the next period, you’ll pay interest on the outstanding amount.

If you don’t pay the balance the next month or only pay part of the bill, you’ll pay interest on what you owe and interest on the interest too. This “compounded” interest makes credit cards a very poor choice for a home renovation.

Clearly, the best renovation loan is one that offers a set interest rate and regular payments. Whenever you decide to pay off the entire loan, the lender shouldn’t welcome the final payment and never charge you a penalty.

Are You Too Busy to Take Time Off to Apply?

Let’s face it, who’s got time to go into a bank to apply for a renovation loan? We all live busy lives and this routine is pretty outdated.

Fortunately, the best renovation loan for you may not lie with a brick-and-mortar lender anyway. Canada offers many licensed, reputable online lenders. You don’t need to waste time filling out paperwork in a bank or credit union. Instead, do everything online whenever and wherever you want.

Do You Want to Start Renovating Now?

Another reason you may want to look for the best renovation loan in places other than traditional lenders is how long it can take to get your funds.

They may not be the best choice if you’re itching to start your project, since they could take days or weeks to make their decision. If they approve your application, you could wait many more days before you actually get your money.

The best renovation loan offers a fast decision and funds release. They should let you know if you’re pre-approved within minutes. Once you sign your loan documents, they should have the funds in your bank account within a day.

Have You Been Turned Down by a Traditional Lender?

Perhaps you’ve applied for one of the loan options mentioned above and your lender turned you down. This often happens if your credit isn’t rated “very good” or “excellent”.

This can seem very unfair if you have one small issue on your credit file that negatively affected your rating. It can also be extremely frustrating when you have steady work and you know you’re totally capable of repaying a loan.

The worst part is that these lenders use a “hard” inquiry on your credit file which remains there. If you try another traditional lender, they may see that inquiry as a red flag and they may not lend to you either.

Luckily, the best renovation loan doesn’t exclusively rely on your credit. Some lenders use a more comprehensive approach and assess many factors. They use a “soft” credit inquiry if they do check and it does not remain on your credit file.

Find the Best Renovation Loan at FlexMoney

If you’re looking for a simple way to get the money you need for a renovation, FlexMoney can help. We offer renovation loans between $500 and $15,000 with repayment terms between 6 and 60 months.

Here’s why we believe that we can offer you the best renovation loan available in Canada.

  • No restrictions – no need for contractor quotes – use your loan money for any renovation project you choose
  • Unsecured – we do not place a lien on your property
  • Set Interest Rate – pay the same payment amount through your loan – your interest rate will never increase
  • Flexible Payment Options – choose weekly, bi-weekly, semi-monthly, or monthly payments
  • No fees – FlexMoney does not charge an origination fee to set up your account (many lenders do). We don’t charge prepayment penalties either so make extra payments or pay off your loan whenever you want.
  • 100% Online – apply at any time and even sign your loan documents digitally
  • Easy Application Process – gather your banking information and complete our application form within 15 minutes
  • Artificial Intelligence Assessment – we evaluate many factors, not just your credit report
  • Quick Decision – we’ll let you know if you’re pre-approved within minutes
  • Fast Money – sign your loan documents and we’ll have money in your bank account in less than a day
  • Licensed Lender – we’re licensed to lend in Ontario, British Columbia, Alberta, New Brunswick, Nova Scotia, and Newfoundland and adhere to provincial lending regulations
  • 100% Canadian – our offices are in Canada and our customer service representatives are Canadian
  • Excellent Customer Service – we offer a toll-free number if you want to speak to a real person. Alternatively, contact us via email or website support. We also have an extensive FAQ page on our website that answers many common questions.
  • Total Transparency – we reveal all terms including your interest rate, payment amount, payment dates, and the end date of your loan

FlexMoney’s Requirements

We don’t believe in wasting your valuable time and we want you to know our requirements upfront.

If you meet the following requirements you may qualify for the best renovation loan available in Canada. Please read these carefully and take your time if you decide to apply. We reject many applications due to incomplete or incorrect information.

  • Canadian citizen – at least 20 years old
  • With the same employer for at least the last 3 months
  • Earning at least $2,000 per month for at least the last three months (We will consider income from self-employment, the Canadian Pension Program (CPP), the Old Age Security (OAS), or from various private and public pension programs).
  • Own a mobile phone and have an email address and active Canadian bank account with at least three months of transaction and banking history.

Our application process normally takes less than 15 minutes and you’ll receive our decision in minutes. Please note, you must complete the banking information section within the application form for consideration. We do not ask for proof of income when you apply, so we request statements from your bank to confirm your financial information. Don’t worry, we can only view financial transactions and your data is well-protected.

Additionally, we ask you not to use a VPN location outside of our licensed areas when you apply. Our artificial intelligence system may automatically reject your application.

If pre-approved, just review our terms and decide whether you want to move forward. If not, no problem. It won’t impact you in any way.

FlexMoney’s Restrictions

We wish we could accommodate everyone, but we can’t consider certain applications. Please don’t apply if you are currently enrolled in an active bankruptcy, consumer proposal, or credit counselling program.

We can’t approve your application if your income comes form Employment Insurance (EI), Disability Benefits, Canada Child Benefit, Student Aid or COVID-19 relief benefits either.

Find the Best Renovation Loan Now!

FlexMoney believes you will agree we offer the best renovation loan in Canada. Apply quickly without all the fuss and get the money you need in your bank account within a day.

If you have more questions or you’re ready to start the application process, please visit our website. We’ve helped Canadians with their renovations for years and we’re here to help you too.