Monday, 8 June 2015

Purchase Plus Improvements Mortgages

Are you dreaming of buying that "fixer-upper" and turning it into your dream home? If so, then the Purchase Plus Improvements Mortgage might be your solution.

This unique program allows you to add as much as $40,000 in Renovations/Improvements and renovations to your mortgage when purchasing a home. This can be fantastic if you love a home for it's structure and it's location, but wish you could update things like the kitchen, bathroom, or finish the basement, for example.

How Does it Work?


Your mortgage lender will lend you up to 95% of your home's "As-Improved" value, generally meaning the purchase price of the home in addition to the cost of the improvements that you have done. The mortgage is advanced to you in two stages, the first amount released will be enough to complete your purchase, and the second will be the amount of renovations you specified when you applied for your mortgage. Try my Free Calculators to see for yourself how much you can afford.

What's The Catch?

 

One important consideration is that the lender will not release the funds until the renovations have been finished completely. This means that it is your responsibility to finance the renovation while it is being done. Most people will pay for their renovations from a line of credit, or a short term loan from family while the work is being done and then immediately repay the money once the final inspection is complete. There is also usually a stipulation that the work be completed within 3-4 months of your home purchase completion.

That Sounds Awesome! Where Do I Start?

 

If you think this might be the mortgage solution for you, visit me online at www.ryanwsmith.ca and schedule an appointment today. We can review your options and create a plan that will take you from your First Home to your Dream Home in no time!

If you would like to get the most up-to-date information in Kamloops, BC on your Home Purchase, Mortgage Refinance, or Mortgage Renewal, please 'Like' our Facebook page and follow me on Twitter and Pinterest.

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