How to Utilize The Home Depot Project Loan
Utilizing The Home Depot Project Loan for you next Substantial Renovation or Do It Yourself (DIY) Renovation Project
With both professional and personal experience using the Home Depot Project Loan, we can honestly say that it is a great option for Fully or partially financing Home renovation projects
BVM Contracting almost exclusively shops at The Home Depot for many of our managed renovation and home building project needs. More often than not we have found that their product selection and services are unmatched compared to their other big box competitors. Only recently have we found use in their financing services that they provide, and having recently completed a personal project utilizing The Home Depot Project Loan we can give honest feedback about our experience using the financing. Below we plan to answer the following questions:
What is the home Depot Project Loan?
How much can I access in financing from The Home Depot Project Loan?
What can I purchase with The Home Depot Project Loan?
Am I able to pay off the loan before the 12/60 month period is over without penalty?
What types of projects would benefit from The Home Depot Project Loan?
Before we begin, it is important to note that we are not being compensated for the information in this article and links to The Home Depot website. We found a lot of value in using The Home Depot project loan and wanted to share our insight and experience to others looking to complete a home renovation or home addition project.
What is the home depot Project Loan?
The Home Depot Project loan is a service provided by The Home Depot through Financeit Canada Inc. that allows home owners to shop for renovation materials and utilize select home depot services for a 6 month period. During the 6 month period you are paying interest only on the amount of spend you are making, which is paid monthly throughout the 6 month period. Once the 6 month period is over the amount of money you spent gets turned into a term loan of fixed monthly payments divided over 60 months with a minimum spend of over $1,000, or 12 months with a spend of $999.99 or less. This allows home owners to spread out their renovation project spending into manageable monthly payments after their renovation is completed.
How much can I access in financing from The Home Depot Project Loan?
The amount of financing you have access to depends on your credit and income, much the same way that any other type of financing is determined and approved. The maximum approval amount for a project loan is $50 000 on approved credit. To determine what you can afford you would need to fill out their financing application and submit it for review. Once submitted they give you the amount that they will be able to lend to you. Note that in order to approve you for the loan they will need to pull your credit report.
What can I purchase with The Home Depot Project Loan?
With the Project Loan, you can purchase any items in-store, any online-only products that would ship directly to you, as well as select services like Home Depot Equipment Rentals. Note that the Local Pros services provided by The Home Depot is not included. To learn more you can review the Frequently Asked Questions for The Home Depot Project Loan, or talk with your local Home Depot to confirm you understand the terms of the loan.
Am I able to pay off the loan before the 12/60 month period is over without penalty?
Yes! You can pay the loan off in full at anytime after the 6 month shopping period without penalty. This is the major reason why we recommend the product.
What types of projects would benefit from The Home Depot Project Loan?
In our opinion, there are two major categories of projects that would benefit from The Home Depot Project Loan:
Do It Yourself (DIY) Renovation Projects such as bathrooms, kitchens, outdoor projects, and basement projects. Like we said the product selection is second to none compared to other big box stores, so you would have to be very picky to not find 90% of what you need from The Home Depot if you include their online shopping.
Substantial Renovation Projects, including Home Additions, for spending on finishes like plumbing fixtures, flooring, tile, lighting, and other items.
For DIY Renovations, the amount you can get financed for could potential cover all of the spending for your project, which would be a benefit for you because you would have 6 months time to buy everything you need and finish your project.
For Substantial Renovation Projects, we have seen it where our clients choose to take out the loan to buy most of their project finishes from Home Depot. Since a substantial renovation takes less than 6 months to complete and home additions usually just over that amount of time, it would make sense to take out the loan at or near the start of the project so you can buy all of your finishes when your General Contractor needs them.
Conclusion
We hope that you find as much value in this type of financing as we did, but it is not the only type of financing available to you. Make sure you do your due diligence when figuring out what avenue of financing will work for you so you can feel comfortable with whichever choice you make. We wish you best of luck in your DIY project, or if you are looking to have your project managed by a General Contractor please schedule a free consultation.
About BVM COntracting
BVM Contracting is a full-service General Contractor or Home Builder located in Toronto. We provide home renovation and building services for major home renovations (kitchen renovations, bathroom renovations, basement renovations, full interior renovations, home additions, lot severances, and new home construction). Our goal is to help guide our clients through the process of renovating their home, from concept to completion.
Further than providing General Contracting and Project Management for major home renovations, we also offer value-added services such as renovation financing, renovation rebate consultations and services, building permit and design services, smart home installation services, and real estate investor services.
To learn more about our offering by visiting our services page.