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Purchase + Improvements

Find the 'almost' perfect home and make your own improvements, making it your kind of perfect!
Purchase + Improvements

You've found a home you want to buy however it needs some updating. It could be an old bathroom, tiny kitchen, flooring or even a new roof BUT you don't have the extra cash on top of down payment and closing costs.

We can help you get the funds for the improvements included in your mortgage!

Here's how it works

Once you have found a home you will need to get quotes from a contractor for the work being done. These quotes are then added to the purchase price and this becomes the new value of the home. Your minimum down payment is then based on the new value.

The quotes are sent to the lender along with the offer to purchase for approval. The lender and mortgage insurer must review the quotes to ensure they will add dollar for dollar to the value of the home. Sometimes an appraisal is necessary to determine this.

On closing the funds are sent to your lawyer who will then hold them in trust until the work is complete. Once the work is finished we will order an inspection from an appraiser who will complete a report and send it to the lender. Once the lender reviews and is satisfied with this report the lawyer will be instructed to release the funds to you.

One important note is that you cannot change the type of work being done after funding. In other words you can't supply a quote for a new roof and decide to finish the basement instead.

Here's an example:

Purchase price of home $260,000
Upgrades $15,000
New Value $275,000
Minimum down payment $13,750 (5% of new value)
Mortgage Amount $261,250 (plus Insurance)

Ready to make your perfect house?

We know that each situation is a bit different, which is why we look for specific solutions for each purchase. We have the experience to guide you through your 'purchase plus improvements' mortgage and we would be happy to help you find out if this is the right solution for you.

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