Puchase Plus Home Improvement/Renovation Credit
Free Mortgage Evaluation
Helping people with bad credit from the GTA, Brampton and across
Ontario get the mortgage they deserve
Mortgage Quick Links
Latest Mortgage News
Brampton & GTA Mortgage Blog
Blog Post CategoriesGTA, Brampton, Newmarket, Mississauga Bad Credit Mortgage Refinancing (5)
GTA, Brampton, Newmarket, Mississauga Mortgage Renewals (6)
Mortgage Related (8)
Blog Post ArchivesOctober 2015 (8)
May 2015 (1)
April 2015 (1)
March 2015 (1)
February 2015 (1)
January 2015 (1)
December 2014 (1)
November 2014 (1)
October 2014 (1)
September 2014 (1)
August 2014 (1)
July 2014 (1)
Subscribe to Blog RSS Feed
Get into the dream home you always wanted to
You've decided to buy a home, and you've been searching for the right house.
Now that you found one, it is nearly perfect: decent condition, within budget, nice neighborhood.
The thing is, there’s a dreaded 1960s kitchen, with its cracked ceramic tiles, leaky taps and old cabinets - or basement is unfinished, but you were hoping ONLY if it was finished - an expensive deal-breaker that wasn't accounted for in original budget.
The first choice is walking away from it.
Second option is getting a line of credit - not necessarily the smartest way to go and definitely not easy to obtain.
Third is the purchase plus improvement - renovation credit. This program does not only get you this home and the dream kitchen, but it also saves you from a second loan by allowing you to add the renovation cost to the purchase price - you can benefit from a low mortgage interest rate and make only one payment.
The bank can lend up to 95% of the improved value of the house.
The improved value should be maximum 10% of the original price or $40 000, whichever comes first.
Example: the house is priced at $350,000 but it needs another $25,000 in renovations. You can add in the renovations cost to the purchase price and bank will lend against the total value.
> Purchase price $350,000
> Renovations $25,000
> Total cost $375,000
> Lending value $375,000
> Max. Mortgage $356,250 (95% of $375,000)
> Min. down payment $18,750
With the Renovation credit program, the down-payment is $18,750.
Your usual down-payment would have been $17,500. The difference of ONLY $1000, BUT now you would have to find $25,000 to do renovation.
If you have any questions as to how we can help you with this please feel free to contact us today for a free no hassle quote