Picture this; you find your dream home that has everything you ever wanted. You are happy with the hardwood floors, the beautifully finished basement, and the strikingly landscaped backyard. There’s only one thing that’s really bothering you. That darn vomit green colour themed kitchen keeps you awake at night. Tossing and turning at night, you wish that there were a solution to your kitchen enigma. Well, our team here at Mortgage Winners is here to save the day with Purchase Plus Improvements!
What is Purchase Plus Improvements?
Purchase Plus Improvements is a program that enables mortgage professionals to provide more options when it comes to borrowers who want to commit to a new home, but may want to undertake small or large renovations. The costs of these home improvements are added to the total sum of the borrower’s mortgage, so you don’t have to commit to any out of pocket expenses. Purchase plus is great because borrowers can take advantage of their mortgage’s super low interest rates and renovate their home for a few extra dollars added onto their monthly payments!
How much can I put towards my renovations?
Depending on your mortgage insurer, you can utilize up to 20% of your initial home cost for the renovations that need to be done. Let’s say your mortgage is $500,000, and your mortgage insurer is CMHC who allows up to 10% of your initial mortgage. That means that you can have up to $50,000 for renovations, and perfect your new home.
How does it work?
Firstly, you need to provide a quote on the renovations that need to be done from a contractor. Before closing on the house, this quote is given to your lender for approval. The renovation amount is then advanced to your lawyer on closing day, so that they can hold onto it until renovations are complete. Once the renovations are finished, an appraiser is sent to your home to confirm the work is done. The lender will then authorize your lawyer to release the funds to you.
With our help every step of the way, you don’t have to worry about the logistics and technicalities. Our first priority is that the process is as smooth as possible, so that you’re stress free.
Give us a call or contact us through any of our social media outlets if you have any questions at all. We are happy to help!