Purchase Plus Improvements Mortgage
A purchanse plus improvements program is a CMHC insured mortgage loan for up to 95% LTV to cover the purchase price of a home as well as an amount to pay for immediate major renovations or other improvements that the purchaser may wish to make to the property.
This option eliminates the need to obtain secondary financing after the purchase to pay for improvements. The homebuyer obtains a single first mortgage, makes a single payment, and benefits from lower interest rates.
Purchase Plus Improvement Details
The insured loan will be based on the lower of:
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The purchase price plus the actual cost of improvements, or,
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The “as improved” market value. Prior to approval, CMHC will determine the market value of the property after renovations / improvements. The lending value will not exceed the market value of the property after renovations / improvements.
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A minimum of 5% down payment of total cost (purchase price plus renovations/ improvements).
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Cost estimates for renovations/improvements.
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Qualifications to obtain a CMHC insured loan through an approved lender.
Applicants must have the following:
Example:
| Purchase Price | $100,000 |
| Renovations or Improvements Costs | $25,000 |
| Total Cost | $125,000 |
| Lending Value | $125,000 |
| Maximum Mortgage Allowable (95%) | $118,750 |
| Minimum Down Payment Required (5%) | $6,250 |
Call today or apply online for more information on purchase plus improvement mortgage in Ontario.