Dec 15, 2020
You can include the costs of home improvements into your mortgage.
You don't have to cross a home off your list because it has pink walls and green carpet. Envision the home the way you want it to look. Have an open mind!
The Purchase Plus Improvements Mortgage helps qualified home buyers make their new home just right for them. Renovation costs are included in the mortgage with as little as a 5 percent down payment.
Here's how it works:
The process is simple when applying for a Purchase Plus Improvements Mortgage. After you find the right home, you will need to get quotes from hardware stores or contractors for the renovation costs. The quotes need to outline the work that will be completed and the cost of the renovation project. The lender and the default insurers will approve the work being proposed and the expenses involved. The renovations are started when you take possession of the new home. The work can be completed by anyone as long as it is done properly and to code.
When the mortgage advances on the possession date, all renovation costs are held in trust with the lawyer. Home buyers are responsible for paying for the improvements upfront. Once the lender has receipts totalling the improvement costs, the lawyer will write the clients a cheque. There is a time frame the work needs to be completed by and depends on the lender's guidelines. Every lender is different, but you can plan for the improvements to be completed within 60-120 days.
Some common home improvements include updating or renovating a kitchen, new flooring, painting, finishing or renovating a basement, adding a new patio or deck, installing energy-efficient windows/doors or building a garage.
It is important to have firm quotes in place. Once you take possession of the home and the Purchase Plus Improvements Mortgage advances, you cannot increase the mortgage amount.
Don't miss out on the opportunity to make changes to your home as soon as you move in. The Purchase Plus Improvements Mortgage is a great program. To see if this program can help you affordably improve your new house into the home of your dreams, contact me today!