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Why You Should Get a Big Loan for Your 2023 Home Renovation

Wed, 01/11/2023 - 15:16

The idea of renovation makes every homeowner's heart skip a beat. It's exciting to transform a home, but renovations can be super expensive.

 

That's why most dream renovations stay that way - dream renovations. Homeowners who don't have a lot of disposable income aren't willing to shell out a ton of cash to have a jacuzzi built in their bedroom, for example, or a home office fit for CEOs.

 

But, here’s the thing: saving up or getting the cash for home renovations doesn’t have to be the hardest and scariest thing in the world. There are many ways to finance your home improvement project, one of them being personal loans like our Big Loan.

 

Before we dive into Tonik Big Loan and why it’s what you need, let’s take a look at other ways you can finance your home renovation goals!

 

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Ways to Finance Your Home Improvement Plans

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There are a handful of ways to pay for your home improvement projects. Before you commit to one, it’s crucial to find out the pros and cons of each. Read about them below to make up your mind:

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Use Credit Cards

This is one of the easiest options, obviously, because all you need to do is swipe your card to get what you want. Additionally, you most likely already have a credit card if you’re reading this, so now all you have to do is go out and shop.

 

The downside is that credit cards are ideal only for small home improvement projects such as getting new appliances. This is especially true if you have a low credit limit, which can really ruin the mood of your home improvement shopping spree.

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Pay in Cash

Some people like to do it old school, and that’s totally fine. Paying in cash means you won’t have to worry about fees, repayments, and interest rates. No application forms, too!

 

Unfortunately, paying in cash may take way more time compared to the other options available. Assuming you still don’t have the cash to pay for your home renovations at the moment, you’re going to have to hustle first – maybe even get a second or third job on top of your main one!

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Refinance Your Mortgage

Refinancing your mortgage is when you replace your old mortgage with a new loan that has better terms. The amount leftover from your refinancing – which is your home equity - can then be used to fund your home improvement project.

 

This lets you do three things at once: get a better loan with better features like interest rate and terms, pay off your old one, and complete your home improvement project. But, since you’re basically applying for a new loan, getting approved is not guaranteed. It still boils down to your credit score and credit history.

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Take Out a Home Equity Loan

A home equity loan is a type of loan that allows you to use your home’s equity as collateral. This is a great choice if the equity of your home is high, and if your home renovation project is expensive and long-term.

 

However, if you fail to repay the loan, there is a high risk of foreclosure as the bank or lender may seize your property. Plus, if your plans for home improvement are small and minor, it’s best to skip this option because it typically has long installment terms, sometimes stretching up to 25 years.

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Get a Personal Loan

The beauty of personal loans is that – unlike home equity loans and mortgage refinancing – they usually give you more flexibility, and the application process is typically much simpler. Usually, the interest rate is also fixed, making it easier for you to prepare for repayment.

 

On the other hand, some personal loans may have higher interest rates compared to the common home equity loan, and with shorter terms, repaying may become a challenge later down the line.

 

The way you finance your home depends largely on how you spend and save, your creditworthiness, and other factors. If your main concern is speed and convenience of securing the amount you need, you should think about taking out a personal loan. Not just any personal loan though, but a digital one, like Big Loan!

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Why Choose Big Loan for Your Home Renovation?

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We know you won’t get a Big Loan right away. In fact, taking out a personal loan might be uncharacteristic of you but it really isn’t that daunting. So, if you’re a loan beginner, one tip we suggest is set your fears aside and let Big Loan’s features allow you to decide on how it benefits your needs.

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Big Loan’s loan amount is big – like, really big

With a maximum loan amount of PHP 2,500,000, you won’t have to worry too much about going short on cash in the middle of your repairs or home improvement project. If that’s too big for what you have in mind, you can also borrow as low as PHP 250,000.

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Our installment period is flexible

Depending on how you budget and spend, you can pay monthly for as short as 12 months or as long as 60 months. Choose your installment period wisely so you can pay the loan back with ease.

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You only need minimal requirements to apply

Aside from the very few requirements we ask for, you have to be a condo owner to get a Big Loan. If your property hasn’t been rented for a while, don’t let that sweet piece of real estate go to waste – make it work for you!

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Pre-approval in 30 Minutes, Disbursement in 7 Days

We know, we know – that sounds like such a short time for a loan amount as big as PHP 2,500,000, but it’s true! As long as you submit your requirements on time, you can get pre-approved in less than an hour and get the full loan amount in a week.

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Your spouse can be your Co-Borrower

An easy way to increase your chances of getting a high loan amount is by combining your income with your spouse. Applying with them as your Co-Borrower also means you have someone to share the responsibility of the loan with. You can learn more about it here.

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You can apply without leaving your house

Big Loan is the first all-digital collateral loan in the Philippines. You can go through the entire application process on the Tonik App anywhere, and you only need to go to the Tonik Hub once to formally sign loan and mortgage documents!

 

In addition to Big Loan, you can also check out our other lending products such as Quick Loan, Flex Loan, and Shop Installment Loan. Download the Tonik App and apply today!

 

 

 

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