With the average cost of a home in Canada continuing to rise, more people are buying homes in need of updates and/or renovations. With traditional mortgages buying this type of house can be difficult. First you save for the down payment then, after you purchase a home, qualify for some type of financing for the improvements. The Purchase Plus Improvements program may be the answer.
The Purchase Plus Improvements program helps qualified homebuyers make customized improvements right after purchasing the home. The need for improvements is built into the mortgage. The Purchase Plus Improvements program lets qualified buyers borrow up to 10% of the post-renovation value of a house for the improvements.
One of the restrictions of the program is the improvements can’t be structural. They would include improvements such as new paint, flooring or windows as well as kitchen or basement renovations. Some people may even consider getting a home security camera design drawn up.
How does the Purchase Plus Improvements program work?
Step 1:
Find a home that fits your needs and that is in your budget keeping in mind a rough idea of what kind of improvements you would like to do.
Step 2:
Contact Vertuity for an approval on the purchased property. We can get it approved “as is” and then make the proper adjustments to the mortgage amount once you finalize your renovation quotes.
Step 3:
Go out and get firm quotes for your renovations. *Please ensure they are reasonable and done by a professional.
Step 4:
Provide us with the quotes and we will go back to the lender to make the appropriate changes to your mortgage to include the improvements.
Step 5:
Take possession of your new home and let the renovations begin!
Step 6:
Once the renovations are completed, the lender will send out an inspector to review the work done and ensure it is 100% complete.
Step 7:
Once approved by the lender, the funds will be advanced to your lawyer and they will release the renovation money back to you