Purchase Plus Improvements Mortgage

Every home holds potential, but some just need a touch of magic to truly shine. Tammy and her team will help you navigate the Purchase Plus Improvements Program, guiding you towards seamlessly buying and revamping your new home, wrapping it all into one convenient mortgage.

Imagine stumbling upon a house with character but realizing it needs a fresh coat of paint or a kitchen overhaul. Here’s where the Purchase Plus Improvements program becomes invaluable. Transform spaces with new flooring, modernize with a bathroom remodel, replace the furnace, or even lay down a new driveway. However, keep in mind that removable items like window coverings, appliances, or hot tubs aren’t part of this transformative package.

The process is transparent and straightforward:

1. Initial Exploration: Recognize homes that resonate with your vision but require the Purchase Plus Improvements touch.
2. Mortgage Flexibility: Secure a mortgage with as low as 5% down, incorporating the costs of enhancements.
3. Improvement Budget: Depending on the lender, you can budget improvements between 10-20% of the property’s value. There are cases where substantial value-additions allow for exceptions.
4. Detailed Quotations: Once you’ve decided on improvements, obtain clear quotes from reputable contractors. These should be furnished at the time of loan application.
5. Stick to the Plan: Deviating from the planned renovations, post-possession, can complicate fund release. Hence, it’s crucial to follow the plan.
6. Self-funding and Reimbursement: Be prepared to finance improvements yourself. However, once 100% of the work is done and validated, lenders reimburse the spent amount.
7. Timelines: Renovations must conclude between 90 to 120 days post-closing, depending on the lender’s policy.
8. Verification and Release: After completion, an inspection verifies the work. Some lenders may request contractor payment proofs before releasing the funds.

If your mortgage falls under insurable categories or if your down payment is below 20%, it will typically be insured by one of three major entities: CMHC, Sagen (Genworth), or Canada Guaranty. Each has its nuances and perks for the Purchase Plus Improvements program.

So, if you’ve set your heart on a property but it’s just shy of perfection, let Tammy Wandzura be your guiding hand through the transformation journey.