Tag Archive for: Purchase Plus Improvements

More Options

One of the benefits of dealing with a mortgage broker is that we have more financing options for our clients from more diverse lenders. Yes I know the other side of the debate and the multitude of products available at the big banks. However more products from the big bank may not help you when all you need is financing for your new home. Who cares if they have a great rate on savings accounts if they are unable to help you finance your property.

This brings me to the new lender to my portfolio. They have just started lending her in the maritimes and are registered with all three high ratio mortgage insurers. They have a rather unique product that you need to hear about. There are many lenders who have purchase plus improvement mortgage and these are proving a required element in today’s tight housing market due to the fact that the perfect home is now longer available so you must now make it perfect.

So back to the new guy, the typical purchase plus program allows you to increase your purchase price by 10% or 40K which ever is less. The new lender allows you to go to 20% or up to 100,000. This is incredible as with the recent spike in property prices and the cost of renovations, there is not much you can accomplish with 10% or 40K.

If the house that you plan on buying requires some work, and most do in today’s market then this is definitely a program to check out.

I look forward to hearing from you in regard to your mortgage needs.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

p.s.s- I should tell you that I am licensed in Nova Scotia, Ontario(M18001555) & in British Columbia(BCFSA #504098).

p.s.s.s You can download my new mortgage app here

Purchase Plus Improvements

In this age of highly competitive real estate market, sometimes you just have to jump and offer on the next available decent house in your price range. However since the homes are going for well over asking price and sometimes with interiors that have not been touched since Justin Trudeau’s father was Prime Minster, a purchase plus improvement mortgage may be something that you want to consider.

With this mortgage program it allows you to purchase an as is home ( not one that is not livable) and make some improvement to make it your own. The improvements are limited to structural and permanent fixtures ( paint, flooring, cupboards, roofing or furnace / AC etc) rather than appliances.

Depending on the lender programs can be the purchase price of your home + up to 10% or 40K whichever is less or some lenders are now doing the purchase price + 20% of the purchase price as improvements.

Here is an example, you were the successful bider on a home that you are buying for 500K. You still have room in your debt service ratios and want to improve the house to make it your own. So depending on the lender in some cases you can add 40K in improvements and others you can go up to 100K.

Don’t forget that if your purchase required high ratio mortgage insurance (CMHC,Sagen or Canada Guaranty) your down payment will now change. You will need to put down 5% for for 1st 500K and 10% of the improved value. So that would be 25K on 500K and 4K for 40K or 10K more if you were getting 100K worth of work done.

“When you are good at something, you will tell everyone. When you are great at something, they will tell you.” Walter Payton

I look forward to hearing from you in regard to your mortgage needs.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

p.s.s- I should tell you that I am licensed in Nova Scotia, Ontario(M18001555) & in British Columbia(BCFSA #504098).

p.s.s.s You can download my new mortgage app here