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Loan for renovation worth it?

Featured Replies

My home is in a state which requires renovation. I have savings to do it, but is confused whether to spend it all on the renovation or to take a mortgage to do the same. At the same time I am also thinking whether it is worth or not to take a loan for mortgage. My mortgage broker is encouraging me to take it, but I am not convinced. Please share your opinion. Thanks!

Renovation loan interest is very high at around ~5%. Home loan interest is ~1% so better to take the home loan rather than the renovation loan.

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