A Purchase plus Improvements Program combines a home improvement loan with your mortgage.  This blog is the second post in a two-part series on home renovations. You can kick-off renovations as soon as you take possession of your home. Key renovations, retrofits and upgrades will increase your home’s comfort and style. Fixer-uppers provide excellent value for your real estate dollar, as you can avoid the premium demanded by new or renovated properties.Purchase plus Improvements

Which improvement projects offer the biggest bang?

  • Creating an In-Law Suite. Income generating potential adds value!
  • Renovating the Kitchen. Fresh cabinets, lighting and appliances… after all it’s the  most important room relating to valuation
  • Remodeling the Bathroom.  Spa features, lighting, tiles and fixtures are affordable luxuries. Similarly, adding a half bath increases value dramatically.
  • Updating all Fixtures.  Recessed lights, energy efficient windows and closet organizers are your best options because it’s what people want.
  • Flooring. Hardwood beats most other choices. Install or refinish existing. For bathrooms choose tile and ceramics.

Here’s How Purchase plus Improvements Mortgage Works

Assume you find a bargain home at a desirable neighbourhood for $400,000. You simply don’t have the additional $50,000 you need for new windows and kitchen renovations.  Consider a Purchase Plus Improvements mortgage, you can add renovations into your mortgage. You can qualify with a down payment of as little as 5% of the home’s purchase price ($400,000) plus renovation costs ($50,000). In this case, that would be a down payment of $20.000 + $2,500. Your renovation costs are disbursed once the work is complete.

Maximum Property Value must be less than $1,000,000.  Properties up to 4 units are permitted with one being owner occupied. See Genworth’s program guide for more details.

Are you thinking of Buying and Renovating a fixer-upper? Consider doing the work immediately instead of prolonging it.  Any questions can be answered with the help of a qualified Mortgage Broker. Please give me a call at 613-867-8076 or send Jennifer Rossides an email at jenr@lendinghand.ca  Start today to find a Smart Mortgage Solution that’s right for you.

Share This