Buying a ‘Not Quite Perfect’ Home? Consider a ‘Purchase Plus Improvements’ Mortgage!

Found a great home in a great neighbourhood, but you wish it had a newer kitchen, finished basement, and bigger bathroom? Did you know there’s a program that allows you to buy that home AND provide up to $40,000 for renovations all in one mortgage?

Here’s how it works, step-by-step:

  1. Meet with me, your local mortgage broker to review your budget – you’ll walk away with a pre-approval that lets you and your Realtor know what you’ll qualify for.
  2. Work with your Realtor to find a home that fits within your budget, including estimated renovations – your total cost cannot exceed your pre-approved amount.
  3. Make your offer and negotiate your purchase – remember to include a subject-to-financing clause!
  4. Submit your accepted offer along with written contractor quotes for your desired renovations to me – I’ll work closely with lenders to get you a final approval. Remember, your additional borrowing power is limited to the lesser of $40,000 or 20% of the post-renovation home value. Your minimum down payment will be calculated on the total amount of your purchase and your renovation costs.
  5. When your purchase completes, approved funds for renovation will be held back by your lender. After taking possession, finish your approved renovations then notify me. I will arrange a follow-up appraisal to confirm your renovations have been completed – your lender will then release the remaining funds to pay your contractor.

It’s that easy! Want more info? Talk to me for all the details!

Marla Daniels, Mortgage Insight – The Mortgage Centre

marla@mortgageinsight.net – 250-661-6673


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