Did you know that you can secure financing for up to 95% of the ‘as improved’ value of the home? A Purchase Plus Improvements Mortgage allows those who have qualified for the program to borrow as much as 20% of the post-renovation home value, with as little as 5% down. The program is available for:
- Small- and large-scale improvements and new home construction.
- Projects where improvement costs are equivalent to or below 10% of the improved value of the home.
- Homes valued at less than one million dollars.
- Repairs that will improve the value of your home, such as the kitchen, bathroom, and basement.
The Purchase Plus Improvements Mortgage Process
First, secure your mortgage pre-approval from our team and determine your maximum approval amount.
Then, find your dream home and determine the cost of renovations you would like to do (this cost cannot exceed your maximum approval amount).
Next, assuming your offer has been accepted, you will send the accepted offer and the renovation work quotes to your broker, who will work with the lender to approve the mortgage with the renovation costs included.
Now, you can take possession of your home and start your renovations! When the renovations are complete, you need to let your mortgage broker know so they can set up an appraisal and a work inspection based on the quotes you initially provided.
Finally, the appraiser will provide the lender with the inspection documents and confirm that the work has been completed in line with the quotes, at which point the funds will be released to you and you can pay your contractor.
To determine your maximum approval amount, reach out to The Woollam Mortgage Team!
You obtain quotes for planned renovations, the lender adds the approved amount to your mortgage, and you complete the upgrades after possession. Funds for the renovation portion are typically released once the work is inspected and approved.
Yes. Lenders require detailed quotes outlining the cost of your renovations. This ensures the improvements are feasible and the added mortgage amount is justified.
Renovation funds are generally released after the upgrades are completed and inspected. This ensures the improvements match the planned work and budget.
Some lenders allow DIY work, but many prefer licensed contractors for quality and liability reasons. Your broker will confirm which options your lender supports.
