Purchase + Improvements
Renovation & Improvement Mortgages:
Opt for a Renovation Allowance Today!
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The Purchase Plus Improvements program is tailored for consumers eyeing homes with untapped potential, ripe for a little renovation magic. This initiative empowers you to enhance your new home immediately post-purchase, with renovation costs seamlessly integrated into a single manageable mortgage.
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Don't overlook that fixer-upper... A Purchase Plus Improvements Mortgage enables qualified buyers to acquire a home or condo while incorporating a Renovation Allowance, even with as little as 5% down.
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Step 1: Secure a mortgage pre-approval from MMG Mortgages to ascertain your maximum approval limit.
Step 2: Identify a property and outline the required renovations alongside their estimated costs. The combined purchase price and renovation expenditure must not exceed your maximum approval amount. Lenders will request written quotes detailing the proposed work and its costs. Chattels, dumping or waste costs, or demolition should not be included in the quotes.
Step 3: Upon offer acceptance, furnish the purchase contract, MLS Listing, and renovation quotes to MMG Mortgages. We will liaise with the lender to secure mortgage approval, incorporating the renovation costs.
Example: Purchase Price: $350,000 Renovation Cost: $35,000 Revised Purchase Price: $385,000 Mortgage Amount: $365,750 (Plus CMHC $13,167) $378,917 Required Down Payment: $19,250 (Down Payment constitutes 5% of the Purchase Price, inclusive of renovations)
Step 4: Post-possession, commence renovations. The lender will instruct the solicitor to retain the additional renovation funds until the completion of works. Upon renovation completion, inform your broker, who will arrange for an appraiser to verify the work's adherence to the provided quotes.
Step 5: The lender will review the appraiser's inspection report, confirming satisfactory completion of the work as per the quotes. Subsequently, they will authorize the release of funds to settle the contractor's dues.