How to Get the Home You've Always Wanted

What is a Purchase Plus Improvement Mortgage?
Allows you to borrow the cost of your renovations, typically up to a maximum of $40,000 and add it to the home price.

This is a great option for those who are searching for the perfect home but coming up empty handed, or if you're starting the process of renewing your mortgage and wanting to make some updates to your home. 

How it Works - From your Renovator 
·You must indicate to your broker, and real estate agent that you want to do a purchase plus improvement (this will help them understand that they can’t make the deadlines too tight.).

·Your Renovator will also need to know when they are called for a quote so they can communicate the timelines they need to prepare a quote.

·The scope of work cannot change from what was approved as the lender agreed to loan at the appraised completed value. You run the risk of being in default if you do less or change the scope of the renovation. EX: doing less pot lights than planned

·You should select a reputable contractor that has a contract, insurance, WCB, and who pulls permits.

How it Works - From Your Lender

Step 1: When you have found a property, determine what renovations need to be done and a rough idea of how much they will cost.

Step 2: The Mortgage broker will get you approved based on the house price 'as-is.' What make us different is that at this point, instead of you having to get in touch with the appropriate contractors and get firm price quotes for the work that needs to be done, we will take care of all of this for you and ultimately approve it.  

Step 3: Your Mortgage broker will then have your mortgage approval revised to include the price of renovations, as per the quotes, and help you complete your mortgage details.

Step 4: After the sale has concluded and you take possession of your new home, you can immediately start the renovations under the scope of the quote. *Any change orders would be at your cost and outside of this approval.

Step 5: Once the work has been completed, an appraiser is sent out to verify that the renovations were completed properly and as required per the quote. The cost of this inspection is approximately $150-$250 (depending on location)

Step 6: You'll receive the money to pay the contractors OR your lawyer will be instructed by the lender to release the money for the specified renovations directly to the contractor. *Time restrictions do apply. MOST work is expected to be completed within 120 days of possession.

Step 7: With the upgrades done, and all the mortgage details taken care of, you can fully enjoy your new home-sweet-home.

How it Works - From your Realtor 

Do the work in advance and have your pre-approval and budget in order before you shop for a house. 

Let us know your plans. Knowing from the start allows us to negotiate the necessary timelines to make it happen.

Know the current market and the pricing differences; the value of a new home, a re-sale home, with or without renovations, etc. We can guide you through this! 

Find the one and then decide - does a 
Purchase + make sense for this property? We We will help you ensuring the price and place makes sense with proposed upgrades for your investment.

Will will be side the entire time, working with you through the process, with the Lender and with the Renovator, to ensure we meet all of the timelines and criteria to fund your project and get you into your dream home.

Want to know more or how to take the first steps? Give us a call!

Carl Sauvé

Arlene Anderson

Kim Fox

Tammy Polley

Roxann Klepper