Often we are approached by buyers who are looking to acquire property but can’t commit to a home if there are aesthetic concerns with out-of-date rooms. The underlying concern is that renovations and improvements will have to be paid for out of pocket or on credit afterwards – quite a daunting problem.
So what’s the solution?
Mortgage insurers Genworth and CMHC offer a unique solution to this dilemma with their “Purchase-Plus Improvements” Mortgage option. This product allows us to provide a Mortgage to our clients to move in on their Purchase Contract Closing Date and occupy the property while renovations are completed by a qualified Contractor. This means no out of pocket expenses. Renovations can include anything from window installation, interior painting, finish carpentry, flooring modifications and exterior landscaping.
After the improvements have been completed and inspected by an Appraiser, the renovation invoice is paid to the Contractor. This invoice sum is added onto the original Mortgage amount and remains under the same interest rate as the Purchase price. Most importantly, this Mortgage option allows buyers to re-work their new living space while adding significant value to their home.
For additional information on the Purchase-Plus Improvements program or for information on Improvement Mortgages for existing homeowners, please contact us.