Purchase Plus Improvements Mortgage
When a new home buyer is looking at a home they likely find a few things that they want to fix or renovate. A purchase plus improvements mortgage can help them do that. This is a mortgage where the lender will loan the money to make that happen. This program is applicable to a principle residence purchase up to 95% loan to value for a new or existing property. The interest rate you secure is not affected by using this program.
What can you use this product for?
Improvements that increase the equity of the home will be considered. Typically, these are items like new windows and doors, new flooring, electrical panel upgrade, new roof, and finishing an unfinished space. Renovations like kitchens and bathrooms may also be considered eligible but the purchaser will have to keep in mind that the renovation needs to increase the value of the home, not just appeal your preferences. Eg. A new bathroom renovated from a 40 year old bathroom would be eligible but one from 5 years ago with different finishes because brass is now more popular than chrome would not.
The process
You find a home that requires a renovation.
We have an appraisal of the home that will included both an as-is value and an improved value for the renovation that we are planning to fund.
We get quotes of how much the renovation will cost and provide them to the lender.
When your home closes the mortgage will be advanced and the renovation funds will be held in trust by our lawyer.
You complete the renovation on your home funded by your own sources (we can actually help you put this on a credit card where you will get 5% of the funds back in cash!)
When the work is completed we do another appraisal and submit your receipts.
The funds are released to you from the lawyer.
We have several experts to help you through this process, our contractors are licensed, insured and know exactly how this program works. We help you through the process every step of the way so that your renovation goes smooth. This may be your first time renovating and going through this process but it is not ours!
