Over the past two and a half years, Canadians have faced unprecedented times with the onset of a pandemic, a record-high real estate market, natural disasters and inflation. As per the finding of our 2022 Reno Report, the rising cost of materials has forced almost 41% of Canadians to postpone their projects. Among these, 75% of people said they planned to go ahead with the projects in 2022. As pros operating during this economic downturn, you may be facing such conversations where clients are unsure of projects because of financial constraints. That’s why HomeStars has partnered with Perch, a tech company that is helping project-ready homeowners financially support their dream renovation.
You can leverage this partnership to convert leads into opportunities, and here’s everything you need to know in order to do so!
How Can I Convince Homeowners To Continue Their Projects?
During an economic downturn, homeowners may shy away from home renovations. However, there is much that they can benefit from when they take on a home project. Here are some ways these projects can help homeowners:
- Return on investment: A recent Royal LePage survey found that renovating key areas such as bathrooms and kitchens can yield up to 100% return on investment. For those unwilling to spend as much, simply putting a fresh coat of paint on their walls, can increase the value of the home by 12%.
- Upgrading living conditions: Regular maintenance jobs can not only keep the home in proper condition but also prevent future problems. And these smaller projects can be spread throughout the year while upgrading the current condition of the home.
- Preparing for selling: If homeowners are gearing up to sell their homes, it is a good time to bring in the pros to put the house in its best shape for the most value.
- Adding an income suite: Spending now and converting a basement or any other area into a separate unit, can help build an income suite which can generate rent, thus adding to the household income.
- Make homes accessible and older-generation friendly: With the pandemic, more and more seniors are choosing to stay put in their homes. Whether the older generation has a separate unit or coming to stay with the children, renovations can help build inter-generational suites and also make the home more senior-friendly.
- Make homes more energy efficient: Older homes can often incur more bills owing to outdated home fixtures. Updating home fixtures and switching to smarter and greener home solutions can help bring down the cost of utilities.
- Make homes safer: Older homes or even new ones can have faulty wiring or exposed wiring, which can be dangerous for the residents. Apart from this, one must also look into things like the basement and drainage to avoid flooding. All of these regular up-keeps can help make the home safer for all the inhabitants.
How Is Perch Different From The Traditional Methods?
Unlike traditional methods that initiate a new loan, Perch helps existing homeowners leverage their available equity for funding home renovations. Here’s how they do it:
- Refinancing: This means paying off the existing mortgage and replacing it with a new mortgage. This new mortgage may have a bigger amount with a different rate and term.
- Perch gives customers a quick estimate of how much they can borrow for a home renovation along with details of the new mortgage amount and the monthly payouts.
- They also share tips on how to increase borrowing power or become eligible for one.
The HomeStars-Perch partnership is giving Canadians the power to borrow with confidence. With transparent insights, breakdown of payments and continuous support from the team, this partnership stands to benefit homeowners who are looking for ways to finance their home renovations.
How Can You Help Homeowners To Use Perch To Finance Their Projects?
Perch offers a Home Renovation Calculator, which homeowners can use to find out more about how much they can borrow for renovations. This calculator works by taking into account the home equity and giving an estimate of how much homeowners can borrow from the equity to finance their home renovation. Depending on the home valuation and mortgage rates, the calculator will generate the new mortgage and monthly payments.
When homeowners are planning & budgeting their renovation project and receive a quote from a pro like you, they can use the calculator to find out if they are eligible for financing the project. By knowing the borrowing power, homeowners can hire a community-reviewed pro on HomeStars with confidence, after reviewing the project and its cost.
What Are The Benefits Of Using The HomeStars-Perch Partnership?
It is possible that during your conversation with the homeowner, you may need more pointers on why homeowners should leverage the HomeStars-Perch partnership when it comes to borrowing money for financing a home renovation.
Here’s a complete breakdown of how Perch helps homeowners:
- Tracks home value with monthly property estimates
- Can be used to view mortgage balance and how much home equity they can access
- Offers alerts when there’s an opportunity to save money by switching lenders
- Free tools and calculators
- Offers a mortgage approval in less than 48 hours
- Dedicated 1:1 support with a qualified Perch mortgage advisor, 7 days a week
So the next time you come across a project-ready homeowner who had to turn down a project for financial reasons, make sure you inform them about this opportunity to refinance their project. This will help them to continue their project and earn you an excellent business opportunity. Educating your potential clients on the benefits of refinancing can lead to a better chance of converting the business. This HomeStars-Perch partnership with its unique offering stands to benefit both pros and homeowners by helping you close opportunities and renovate their homes without breaking the bank, respectively.
If you want to know more about the HomeStars-Perch partnership, a dedicated account manager can help you. Sign up with HomeStars today to make the most of your online business profile.
