Looking to buy a home that needs just a little TLC but don’t have the cash to complete the needed updates? No problem! We have lenders who offer a purchase plus improvements product that allows you to purchase the home, and add a little extra to the mortgage for the cost of the renovations.
A few things to keep in mind*:
1. improvements must improve the value of the home (ie: bathrooms, kitchens, new flooring, etc.)
2. the maximum amount of improvements is $40,000 or 20% of the purchase price
3. estimates are required up front, along with the mortgage application
4. most lenders will do only a single advance of the improvement funds, once the improvements are completed. So that means, you may need to make arrangements in the short term to carry the cost of the improvements until they’re fully completed. That may be in the form of a personal line of credit, a credit account at the local building centre, personal savings, or a combination of all three.
5. an inspection will be done to confirm the project is complete, and the subsequent funds will be forwarded to you. At this point, you would be able to pay back any of the accounts/funds you used to carry the cost during the renos.
*this list is a guideline only, and may vary from lender to lender. It may also vary, depending on client qualifications.
As always, I’m happy to answer any questions you may have! Also, feel free to share or tag someone you think may benefit from this information.
Sylvia Reimer, Mortgage Broker
Cell: (204) 392-6750