metronews.ca THURSDAY, JANUARY 19, 2012
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Kitchen looking dated? Need a new Bathroom? Windows need replacing? Flooring worn out? The 11th Annual Showcase of Home Renovation and Building Solutions
Make your reno dollars PAULINE ANDERSON FOR METRO
Financing can be the first major hurdle in any home improvement project. To give you a head start, David Terry, associate VP, TD Waterhouse Financial Planning, has these useful tips: Don’t use credit cards: “There’s the old saying, don’t buy it if you can’t pay for it,” says Terry. “Credit cards are great vehicles for cash management, but they’re not great vehicles for borrowing.” Interest rates: If borrowing is unavoidable, get as low an interest rate as possible. Check into getting a line of credit secured by your home.
Grow Savings
If you are saving for a major renovation, a tax-free savings account may be your best bet. The interest you gain is tax free, as is the amount you withdraw. Adults can deposit $5,000 annually into such an account. But the costs and benefits of a high-interest savings account may make it a wiser choice.
“That’s going to bring the interest rate down compared to an unsecured line of credit,” says Terry. Being able to obtain a secured line of credit will depend on factors such as your previous payment histo-
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ry and your “credit worthiness” based on your relationship with your bank, he says. Save: If you can, save up for the renovation, and “stage this out with a clear goal,” says Terry. Get advice: Whether you are saving or borrowing, talk to a professional in the financial services industry who can give you the best advice and suggest the best “vehicle,” says Terry. For example, if you want to save up for an addition to your house, the adviser could help determine a workable “ time horizon,” and might recommend an automatic monthly contribution, a sort of “set it and forget it” type of approach, says Terry. Accounts: Decide along with your adviser which type of savings account — tax free or high interest — is best for you. Investigate rebates: “If your renovation involves replacing a hot water heater or a furnace or other high-energy consuming products, there may be some rebates available there,” says Terry. Talk to your local utility companies for more information.
at the new
CE Centre 4899 Uplands Dr., Ottawa
Talk to renovators, designers, and contractors • Kitchens & Bathrooms • Windows & Doors • Flooring • Building Materials • Heating & Energy… and so much more! • 125+ unique companies • 1,000s of great products & ideas! • Helpful seminars • More than $10,000 in great prizes!
HOURS: Friday: 12 noon - 9 pm Saturday: 10 am - 6 pm Sunday: 10 am - 5 pm General admission: $10 per person Children under 17 are FREE Owned and Produced by
Proud member
For advance tickets and more information, go to: www.HomeRenovationsShow.com