Purchase Plus Improvements
Transform Your New Home Into Your Dream Home with A Purchase Plus Improvements Mortgage
Are you dreaming of the perfect home that fits your unique style and needs? With a Purchase Plus Improvements Mortgage, you can turn that dream into a reality. This innovative financing option allows you to finance not only the purchase price of your new home but also the cost of renovations and improvements. Whether you want to update the kitchen, modernize the bathroom, or add an extra bedroom, this mortgage option provides the flexibility and funds you need to make it happen.
Discover how you can transform your dream home into reality with a Purchase Plus Improvements Mortgage in Canada. Say goodbye to compromise and hello to the home of your dreams, personalized to your unique tastes and lifestyle.
A Purchase Plus Improvements Mortgage is a financing option that allows you to purchase a home and finance the cost of renovations and improvements. This mortgage option is an excellent way to finance your dream home without having to wait until you have the funds to pay for renovations. With this type of mortgage, the cost of your desired renovations is rolled into your mortgage, spreading the payments over the entire term of the loan, meaning that you can start working on your dream home from day one without having to delay the improvements you desire.
The amount of money you can borrow with a Purchase Plus Improvements Mortgage is typically based on the value of the property after renovations are complete. This means that you can borrow a larger amount of money than you would with a traditional mortgage, giving you the ability to make more extensive renovations or improvements to your new home.
There are several benefits to using a Purchase Plus Improvements Mortgage to finance your dream home. One of the most significant benefits is that this type of mortgage allows you to personalize your new home to your unique tastes and lifestyle. You can make the upgrades and improvements you want without having to compromise on your vision for your dream home.
Another benefit of a Purchase Plus Improvements Mortgage is that it can help you save money in the long run. By financing your renovations and improvements through your mortgage, you can avoid taking out separate loans or lines of credit that typically come with higher interest rates. This means that you can save money on interest and have one simple monthly payment.
To be eligible for a Purchase Plus Improvements Mortgage, you must have a good credit score and a stable income. For the most part, the qualifying process is the same and you must be able to debt servicing the additional mortgage amount. One of the differences is you must have the minimum down payment for the purchase price plus the renovation amount. For example if you purchase your home for $400,000 and would like to add $20,000 of renovations, the minimum down payment will be $21,000.
Applying for a Purchase Plus Improvements Mortgage is similar to applying for a traditional mortgage. The first step is to let your Broker know so they find a lender that offers this type of mortgage. Once you have found a lender, you will need to provide information about the property you want to purchase and a quote for the renovations you want to make to the home. The lender will then approve or decline your request for the additional funds.
Finding the right contractor for your home improvement project
When you have found a contractor you want to work with, it is essential to have a written contract that outlines the scope of work, the timeline for completion, and the cost of the renovations. This will help ensure that there are no misunderstandings or disputes during the renovation process.
It is very important to keep in mind that unless you have access to the money elsewhere, the full amount will not be released until the job has been completed and confirmed via an inspection or appraisal.
When planning your home improvements, it is essential to create a budget to ensure that you stay within your financial means. Start by making a list of the renovations you want to make to the home and getting quotes from contractors for each renovation.
Once you have a breakdown of the cost of each renovation, you can prioritize the renovations based on your budget. It is also essential to build a buffer for unexpected expenses that may arise during the renovation process.
There are many home improvement projects that you can finance with a Purchase Plus Improvements Mortgage. Some of the most common home improvements include:
- Kitchen renovations
- Bathroom renovations
- Flooring upgrades
One potential challenge of using a Purchase Plus Improvements Mortgage is that the renovations must be cosmetic in nature and not structural. This means that you cannot use this mortgage option to finance major renovations, such as adding an extra level to the home.
Another potential challenge is if the renovations are done poorly and fail either the appraisal or inspection. If the renovations don’t add the equivalent value to your home, the lender will reduce the additional amount accordingly. Be sure these get done properly.
A Purchase Plus Improvements Mortgage is an innovative financing option that allows you to finance not only the purchase price of your new home but also the cost of renovations and improvements. This mortgage option provides the flexibility and funds you need to make your dream home a reality. With a Purchase Plus Improvements Mortgage, you can personalize your new home to your unique tastes and lifestyle and avoid having to compromise.
**If you have any further questions or would like to know more about this program, please reach out or book a call below.