When do I receive the renovation money with a purchase plus improvement mortgage?

If you would like more information about purchasing a home using a purchase plus improvement mortgage please contact us. A lot of people think they don’t know what they want until they see something they really love. But when we look around today, most of us already live in houses that aren’t quite “our style” yet.

How does the purchase plus improvements mortgage works?

Before we go into all the details about what exactly a purchase plus improvements mortgage entails, it's important to understand why you would want to use such an option. If you're looking at purchasing a new house, then you'll likely need to qualify for a loan before going ahead with the transaction. This means getting pre-approved by a lender so they know whether or not you can afford the amount being offered.

What is a purchase plus improvements mortgage in Canada?

A purchase plus improvements loan can be used for any type of property improvement, including renovations. This includes new construction and additions as well as repairs or maintenance projects that improve your existing house. The amount you borrow depends on how much money it will cost to make these changes. You may also need to pay an additional fee depending on what kind of financing you choose.

Purchase plus improvements mortgage, what does it mean?

Purchase plus improvements mortgage is an option for Canadian homebuyers who want the flexibility of owning and living in a property while also making some renovations or additions. The P+I allows you to buy your new house at today's prices, but then make changes over time without having to pay more than one price. This can be very useful if you're planning on renovating your home after buying it.

Can I add renovation costs to my mortgage?

Yes! You may be able to include some additional expenses that aren't part of the purchase price of your house. These items would typically fall under the category of "extras" rather than "maintenance." Examples of extras include landscaping, painting, new appliances, etc. You should also consider any improvements made by previous owners before making this decision. If there's been significant damage done to the property, you may not qualify for a renovation mortgage loan.

What is a renovation mortgage?

A renovation mortgage can be used when purchasing and renovating properties that are not currently owner occupied. The purpose of this type of mortgage is to help finance the purchase price of the property while also providing funds for renovations. This allows homeowners who want to make improvements on their homes without having to sell first. It may seem like a good idea at first but there are some things to consider before taking out a renovation mortgage.

Purchase Plus Improvements Mortgage

Do you want to purchase a home that needs some TLC? Do you want to get these renovations taken care of right away? Purchase plus improvements mortgage is available for purchases up to 95% loan to value.

There is an available mortgage option that will help you pay for renovations with as little as 5% down, and you can start improving your property immediately.

Qualifying Property Types:

A property with up to 4 units, one of which must be owner-occupied.
Can be an existing property or a new construction.

How Does Purchase Plus Improvements Mortgage Work?

Find a house that you want to purchase and determine the renovations that you want to do and the approximate cost of those renovations.
The mortgage will be approved on the value of the house as it is at the time of the purchase. You then obtain firm and specific quotes for the work that you will do.
The purchase plus improvements mortgage approval will be revised to include the cost of renovations.
Take possession and start renovating!
Upon completion, the lender will send someone to inspect the work and determine that it was completed as specified or will require an appraisal.
The money for the renovations is released to you by your lawyer at the lender’s instruction.

Keep In Mind:

There must be firm price quotes for the work to be done and these must be in place before the property is in your possession.
Renovation funds are released by your lawyer only after the work is done.
An appraisal may be required.