Purchase Plus Improvements
Have you fell in love with a home but it needs some upgrades? Do you have your eye on a fixer-upper, or thinking about building your dream home, financing your endeavors is something we can set up. Fort McMurray has a lot of great real estate for sale with basements that need finishing or you may want to upgrade the style of your new home in Fort McMurray. Call our Fort McMurray Mortgage Brokers to start the process and discuss your Mortgage Options. We can offer these amazing products with low mortgage rates. We get you the best mortgage rates in Fort McMurray while giving options. That is what makes us your trusted mortgage brokers and specialist. Call Jodi Whalen to discuss 780-715-7533. We are your Local Fort McMurray Trusted Mortgage Broker!!
“Renovation Mortgages” allow you to renovate a newly purchased home or refinanced home, or build a new one, and roll the cost of the improvements into the balance of the mortgage. This will benefit you and you get the low interest rate associated with a mortgage, and the simplicity of one mortgage payment, while putting down less than 20% of the home’s ‘as improved’ value.
To acquire this type of mortgage, the first thing you must do is make the offer conditional on a renovation mortgage program such as CMHC’s ‘Purchase Plus Improvements’ program. The next step is to acquire a quote from a contractor, to determine the cost of the renovations. CMHC will approve a loan of up to 95% of the ‘as improved’ value of the home — or the value of the newly constructed home — provided the money you’re putting into the home does, in fact, improve the value. This mortgage is to improve the home not to rectify existing immediate concerns that may hinder the home such as foundation cracks or a roof that has leaks due to being over used and not repaired in time. These type of fixes need to happen prior to a mortgage advancing as the risk associated with them will scare any lender and cause your offer to collapse. Call me today to discuss your future home in Fort McMurray and we will find the right mortgage solution for you!
While newly constructed homes may receive up to four monetary advances before the home is completed, with refinanced or newly-purchased homes, CMHC only advances up to 95% of the original value. You must finance the renovations and improvements up front, keep all your receipts, once complete get an inspection to show work is done and await reimbursement after the renovations are complete then the lender will advise the lawyer to release the improvements funds to you.
If you’re thinking about doing renovations on a new home but you’ve put down more than a 20% down payment, consider taking advantage of a Home Equity Line of Credit (HELOC) — a low-interest line of credit that is secured against your home.
|Usual way of financing:|
|Less 5% down payment||$15,000.00|
|Plus 3.15% insurance premium||$8,977.50|
|Mortgage payment @ 3.5%||$1,467.74/month|
|Purchase plus Improvements:|
|AS IMPROVED VALUE OF HOME||$320,000.00,/|
|Less 5%of as improved value||$16,000.00|
|Plus 3.15% Insurance premium||$9,576.00|
|Mortgage payment @ 3.5%||$1,565.59/month|
In this example the you are able to personalize your Fort McMurray home to suit your needs and improve the value of your home, without waiting until you could afford to do the changes.