What to do when your nest suddenly isn’t as empty as you’d planned

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Say HELOC to unexpected home renovations

Here are two real-life situations where homeowners have faced unexpected expenses or home improvement projects.“As soon as COVID-19 breakouts in nursing homes hit the news, Mum got out sooner than we planned,” says Jen, a client who lives in South Surrey. “And then we went to work renovating our basement suite.”

Marjorie is mobility challenged and has osteoporosis, so renovations required more than a quick fix. Dan installed a big walk-in shower. He repositioned and widened all the doorways, and built drawers into the wall so she would have a straight path from the kitchen to the living room. Jen didn’t know at the time that the renovation costs would skyrocket to more than $30,000. “Luckily Dan did most of the work, but had to use a regular line of credit to pay for the materials,” says Jen. “Luckily it worked out, as we didn’t think there was time to get financial advice.”Clients Val and Robb had to dip into their savings when their daughter Holly and son Nic returned home after their schools closed.

“We want to make our home more welcoming and have more space for them regardless,” adds Val. “That would require borrowing money, soa call to our bank may be sooner than later.”Article content continuedIn addition to accessing a regular line of credit, homeowners can consider using the equity that has accumulated in their homes. This can be done through a Home Equity Line of Credit or HELOC.

 

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