Canadian Mortgage Rates
| Term | Rate |
| Prime Rate (P) | 3.00% |
| Line of Credit (LOC) | 3.50% |
| 5 Year Closed Variable | P -0.15% |
| 5 Year Open Variable | P +0.75% |
| 6 Month Closed | 2.89% |
| 1 Year Closed | 2.79% |
| 2 Year Closed | 2.89% |
| 3 Year Closed | 2.89% |
| 4 Year Closed | 2.99% |
| 5 Year Closed | 3.19% |
| 7 Year Closed | 3.89% |
| 10 Year Closed | 3.89% |
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.
Mortgage Process
In Other Languages
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Breaking News
More News
December 2, 2011; MCAP has announced an agreement to acquire the residential mortgage operations and certain related assets of ResMor Trust Company (ResMor). The transaction is expected to be completed in the first quarter of 2012 and is subject to regulatory approval and other customary closing conditions. [ Read more... ]
October 25, 2011; The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent. [ Read more... ]
October 19, 2011; Since 2008 the government of Canada has made mandatory changes to reduce the maximum amortization period from 40 years down to 35 and now down to 30 years for any insured mortgages.
Insured mortgages (also known as high ratio mortgages) are mortgages that require less than 20% of the value of the home for the down payment or for refinancing, less than 20% in equity. The government backs these mortgages for the protection of the lenders. Currently with these mortgages the maximum amortization period is 30 years.
The media has covered how the amortization has been reduced to 30 years in depth, but they have failed to mention that this is not the case with other mortgage options. Mortgages that are often referred to as conventional or uninsured mortgages, which entail a 20% or greater down payment or equity, still offer amortization periods of up to 40 years. [ Read more... ]
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.
Mortgage Process
In Other Languages
Breaking News
More News
Insured mortgages (also known as high ratio mortgages) are mortgages that require less than 20% of the value of the home for the down payment or for refinancing, less than 20% in equity. The government backs these mortgages for the protection of the lenders. Currently with these mortgages the maximum amortization period is 30 years.
The media has covered how the amortization has been reduced to 30 years in depth, but they have failed to mention that this is not the case with other mortgage options. Mortgages that are often referred to as conventional or uninsured mortgages, which entail a 20% or greater down payment or equity, still offer amortization periods of up to 40 years. [ Read more... ]