Often times, a roof repair or a new roofing system installation will be expensive and homeowners find it difficult to pay for it. It doesn’t help that roofing systems are one the harder things to price out when it relates to home renovations and repairs. Regardless of the size of the roofing contractor, companies offering roofing services, and some offering multiple options, and even multiple different ways of putting to practice said options, price points can vary greatly when it comes to a roofing project. However, once you’ve found a reputable contractor that you’re satisfied with, the next thing you will probably ask yourself is, “how am I going to pay for this?”
How do you pay for a new roof?
Over half of Canadians have less than $10,000 set aside for emergencies, according to a recent publication by the Globe and Mail. Interestingly, according to Yahoo Finance, the lower your income, the less likely you are to pay for things on credit. So what are most Canadians doing when a problem comes up with their home’s roof? So if less than half of Canadians can come up with $10,000, and those who have lower incomes aren’t putting things on credit, the question is how are Canadians paying for most home renovations?
Some Canadians go around shopping for quotes from different roofing companies and try to save up for the cost before attempting the renovation. However, this has two different problems. The first is that if your roof is in serious need of replacement, waiting too long to fix it may lead to having a bigger problem, such as wood rot or structural damage. Second, the cost may vary. Roofing projects costs change and fluctuate a lot depending on many different circumstances, that having a fixed price to aim for is not possible, worse, you are very likely going to be short.
After saving for the roof replacement project, it is likely a homeowner will not want to accept to pay anything more above their saved amount. The problem with this is that after having waited for a long time to save, if price changes throughout the roofing industry happened or the roof developed wood rot or even structural damage, then the homeowner will not be able to find a reputable roofer that will do the work right for his/her budget. In these circumstances, typically many homeowners stick to their budget rigidly and end up choosing a contractor who sells at a lower price, risking low quality jobs, improper installation (that would void any warranty) and even low quality materials.
Consider this, you just saved $8000 of your hard earned money to pay for a roof outright because you don’t want any debt, and because you read a site like Homestars, you collect three quotes assuming they are going to be in that range. You get one quote for $5000, another quote for $6000, and another quote for $13,000. You discuss with your family, and decide you’re going to accept the $6000 quote because “that third quote was out to lunch! How could a roofing company even charge that?” The project is completed, everything seems to be fine, and you’re happy that you were able to pocket that other $2000 and put it towards another home renovation. Now your nest egg is pretty much depleted, but you feel comfortable knowing that you’re debt free from your home renovations. However, a year passes and you look up at your roof, and you see a shingle missing. Initially you’re panicked, but you remember that the company who sold you the roof gave you a 10 year workmanship warranty, so you decide to call the number they left you on the contract. The phone rings, and you explain to the contractor that a shingle must have blown off your roof, and the contractor responds “we don’t cover wind damage, sorry” and hangs up. Now you’ve just spent all of your savings and you’re panicking because your roof is completely exposed to the elements and you don’t have any money to afford emergency repairs. You might think this story sounds far fetched, but this story was far too common in 2018 during the windstorm that took place in Ontario.
The new roof is over my budget, what are my options?
So, saving up is hard and you don’t want to use your credit for a new roof. What are your options? Simply put, not many. Fortunately, in Ontario and Guelph specifically, there are several roofing companies that provide financing options. Similar to credit, but instead you have comfortable monthly payments. If you saved up some money, then you can either use it to pay part of the new roofing system, take a nice vacation or save it for an emergency.
Now, before we jump into financing everything in our lives, there are some key considerations here. The first consideration is if this company offers financing, is the loan they are giving you open ended? While not as common anymore, some companies can use closed loans that force you to stick to a term; the issue is if you get halfway through your loan and decide you want to pay it off, you’re stuck with it. An open ended loan however is set up so that at any time the borrower can pay off the full balance owing without penalty. If you decide on financing your project, it’s always smart to inquire if the company is offering closed or open ended loans.