Renovation & Improvement Mortgages

Buy Now with a Renovation Allowance!

Purchase Plus Improvements is for consumers looking to purchase a home that has great potential but needs a little TLC. This program allows you to make improvements immediately after taking possession of your new home and have the costs rolled into one easy-to-manage mortgage.

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 quotes

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.

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