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Purchase-Plus
Improvement Mortgages

Approved mortgages that include the 
cost of future renovations...

New Purchase or Mortgage Refinance

Corporate Member

The Canadian Association of 
Accredited Mortgage Professionals

see Disclaimer

Are you purchasing or refinancing 
a home that needs renovations?

Canadian banks have come to recognize that the majority of homes that are being purchased throughout the country require varying degrees of repairs and renovations. 

These range from cosmetic fix-ups and repairs to the creation of additional living space, such as basement apartments, additions, extensions and the remodeling of bathrooms and kitchens. 

Even with current interest rates at their lowest levels in years, it is often difficult for new homebuyers to qualify for further renovation loans once they have taken possession of the home with a new mortgage.  Next...



Basic

Basic Concept: 
Approved clients can now purchase or refinance a home and add the cost of repairs and/or renovations into one mortgage. The future market value of the home with the added renovations is calculated to determine allowable maximum mortgage amount. The benefits are as follows:

*

 The borrowing costs of the proposed renovations  are at the lowest possible rate, as they are included in the mortgage.

* 

 The client will not have to apply for secondary financing for the renovations after move-in (which, as mentioned is often hard to obtain for most first-time homebuyers).

For a Fast-Track Estimate & Approval, Click Here

Example 1:
You purchase a home for $200,000. Through CMHC (or another mortgage default insurance company), you have been approved for a mortgage with 5% down, or $10,000. Your mortgage loan will be $190,000.

The home has an unfinished basement, and you want to install a basement apartment upon possession.

The cost of the basement apartment is $25,000. Upon approval, CMHC will enable you to borrow a total of $213,750 (95% of the total sum of the home purchase of $200,000 and the renovation cost of $25,000) Your down payment will be re-adjusted from $10,000 to $11,250. (a cash outlay increase of only $1,250). The renovations must be performed immediately upon closing.  For a Fast-Track Estimate & Approval,  Click Here

Example 2:
You purchase a home for $300,000. While the existing kitchen may be fully functional, the style may be old and you want to change to a more up-to-date look.

As well, you may want to change the flooring in the dining room to hardwood or ceramic tile.

The total cost of the proposed renovations will be approximately $30,000..

Upon CMHC approval, your mortgage will be 95% of the future value of the home with the renovations completed ($330,000). Instead of a down payment of $15,000 on the purchase price of $300,000 (your down payment will now increase to $16,500 (5% of the $330,000).

For a Fast-Track Estimate & Approval  Click Here 
or call 416-367-8370.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

refinance plus

Refinance-Plus
Improvements
The concept behind a Refinance-Plus Improvements Mortgage is exactly the same as a Purchase-Plus Improvements mortgage with one difference:

The Refinance-Plus Improvement Mortgage offers 1st Mortgage refinancing to 90% of the projected improved value, as opposed to 95-100% of the improved value for the Purchase-Plus Improvement Mortgage.  

Purchase-Plus Inquiry Form

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Purchase-Plus Improvements
Refinance-Plus Improvements
Inquiry Form

Will you be buying a home or
refinancing your existing mortgage?

Buying home

Mortgage Refinance
First Name:

Last Name:

Address (current):

City:

Province:

Postal Code:

Contact Phone:

-
Email Address:

Main intersection near
home to be renovated:

Type of Repair or Renovation:

Do you have a Mortgage Rep?

Yes No
If yes, please enter
rep's name:
Name of mortgage company
or bank:

Do you have a Realtor?

Yes No
Realty Company: