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:
- 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.
- 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.
- Make your offer and negotiate your purchase – remember to include a subject-to-financing clause!
- 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.
- 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
Leave a Reply