YOUR CANADIAN MORTGAGE BROKER

January 13, 2010

Purchase with Improvement Mortgage

A mortgage that adds more value to your home!

What are the Benefits of Purchase with Improvements?

  • Clients save time by getting financing for renovation plans at the point of purchase for their new home
  • Clients secure low cost financing for renovation projects
  • Improve the value of the home beyond its existing market price

Who is Purchase with improvement mortgage suitable for?

  • Clients who want to purchase and renovate a home before moving in or clients who want to increase the value of their home through improvements
  • Clients with significant renovation projects that are expected to take between 3 and 6 months to complete

How does Purchase with improvement mortgage work?

  • Upon application clients will need to provide a detailed list and cost estimates of the work they wish to carry out
  • The funds required are agreed upon up front
  • Smaller advances under 10% will be released by client’s solicitor (lawyer) upon completion and approval by an inspector
  • Larger advances will be held by the Bank until the work has been completed and approved by the inspector. Advances that are larger than $50,000 will be released in pre-agreed stages

Hints and Tips...

  • The funds required are agreed in advance so any subsequent cost increases are the client’s responsibility
  • Clients will need the funds up front to pay for the work as the funds will not be released until the work has been completed and approved

Client Case Study

Clients: Jerry and Kim, married with two teenage children.

Situation: Jerry and Kim have been looking for a larger home as the kids are growing up. Their realtor found them a slightly older home that needed renovating as it was starting to show its age. Jerry and Kim decided they wanted to renovate the kitchen and bathroom to open up space, modernize the home and increase the value.

Sheldon, Jerry and Kim’s mortgage broker, suggested they apply for the Purchase with Improvement Mortgage Program so they could borrow money against the increased value of their home provided by the renovations. Sheldon helped them gather the required documentation and demonstrated how to plan a renovation project using the planning tools provided by CMHC.

The plans were accepted and after the three months the project was completed and approved by an inspector, the Bank disbursed the funds to Jerry and Kim’s solicitor and through the improvements the value of their property has increased.

 

 

 


BREAKING NEWS

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September 1, 2010
Not that there are a lot of people buying houses these days, but the answer to the age-old question of whether to go long or short on your mortgage is unclear yet again.
August 25, 2010

CALGARY - It's taking Calgarians longer now to sell their homes on the MLS market.

According to preliminary unofficial data on the website of realtor Mike Fotiou, of First Place Realty, so far this month up until Sunday the average days on the market for a single-family home to sell was 52 while it was 53 days for condominiums.

August 17, 2010
Five of Canada's major banks reduced many of their posted mortgage rates by one-tenth of a percentage point, effective today.
August 11, 2010
When investing in real estate, sometimes it’s necessary to look beyond your own backyard. The Real Estate Investment Network (REIN), a national organization of investors, has compiled what it says are the top 10 Canadian cities in which to invest.

www.mymortgage.ca

PHONE: 1.866.509.1090
FAX: 1.866.392.3672

Head Office
Unit 207, 4603 Varsity Drive NW

Calgary, AB. T3A 2V7

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