Feeling Inspired after the Home Renovation Expo?

Purchase Plus Improvements Mortgage - Buy Now with a Renovation Allowance!

Don’t shy away from that fixer-upper…

A Purchase Plus Improvements Mortgage, allows qualified purchasers to buy a home or condo and
include a Renovation Allowance, even with as little as 5% down.

STEP 1

Obtain a mortgage pre-approval from MMG Mortgages, to determine your maximum approval amount

STEP 2

You must find a house and have a general idea of what renovations need to be done as well as the cost of the renovations. The purchase price plus the renovation cost cannot exceed your maximum approval amount. 

*Lenders will request written quotes to be provided, detailing the work to be done, as well as the cost.
Do not include chattels, dumping or waste costs or demolition in the quote.

STEP 3

Once your offer is accepted, provide the purchase contract, MLS Listing
and the quotes for the work to be done to MMG Mortgages. We will have the
lender approve the mortgage with the cost of the renovations included in the
mortgage.

Example as follows:

Purchase Price: $350,000

Cost of Renovations: $ 35,000 

Revised Purchase Price: $385,000

Mortgage Amount: $365,750

(Plus CMHC $13,167) $378,917

Down Payment Required: $ 19,250

(*Down Payment is 5% of the Purchase Price including the renovations*)

STEP 4

Once you take possession of your home, you can begin the renovations. The Lender will instruct the Solicitor to hold the additional Renovation funds, until the lender confirms the works has been completed. Once the renovations are complete, notify your broker and they will send out an appraiser to complete an inspection to verify the work is completed as per the quotes that were provided.

STEP 5 

The lender will receive the inspection report from the appraiser, and validate that the work has been completed in a good manner and as per the quotes provided. They will instruct the lawyer that they are able to release the funds to you, to pay the contractor.

Turn that Fixer-Upper into a Head Turner. All you need is a little TLC!

Contact MMG Mortgages and let us maximize your home buying potential by taking advantage of programs such as the purchase plus improvements program.