Canadian Home Renovation Plan Mortgage

Powell River Real Estate Blog-Brandy Peterson

If you are looking to buy your dream home in Powell River and are having trouble finding a property that fits your idea of perfect, here is a practical solution!  A Purchase Plus Improvements Mortgage!  Within the frame work of this kind of financing you can purchase a home with a small down payment and receive additional funds to renovate or improve the house to just the way you want it.  Sound too good to be true?  It’s not, and here’s how it works:

Find a home with good potential.  Choose a home that is the size you need and in your desired location, make sure the lot size is comfortable for you and the general construction is of good quality.  However, if it is outdated, missing that master bedroom ensuite you can’t live without, needs a shop or has some other flaw that you don’t particularly like, you shouldn’t necessarily overlook it as not for you.  You can purchase the home with a down payment of 5% and apply for up to 10% of the value of the property in extra funds to remodel.  Then the cost of the improvements are incorporated into your financing so you  make one low monthly mortgage payment and get the advantage of the lowest possible interest rates.  Additionally, you can finance the project over the life of your mortgage, up to 25 years, making it the most affordable monthly payment in Canada.

So, if you purchase a $300,000 home, you can potentially access up to $30,000 in funds to upgrade the home with only a $16,500 down payment.  You will purchase the home, organize your renovation project, pay for the work as it is completed, (or hire a contractor who is willing to wait for payment from the lender), have an appraiser come into the home to verify that the renovation is complete and successful, apply for the additional renovation funds, and then receive the money for the project!  After that you can enjoy life in your new home that is fixed up exactly the way you like it!

It’s important to remember that the improvements need to add value to your home and be structural.  So new furniture is not a possibility with this plan.  A purchaser also has to be able to pay for the renovations until the funding comes from the bank when the project is complete and ensure that all the work is finished within 90 days.  This plan though, saves you the hassle of trying to get a renovation loan after you move, you can start the work right away!

It isn’t always easy finding a home that has everything you are looking for but don’t let that make you give up the search.  Don’t waste your money on rent!  If your dream home eludes you, find a quality home in a good location and use the Canadian Home Renovation Plan to bring your dream home to reality!  Call me today to start your search or get further details on this kind of financing solution.

Brandy Peterson is a real estate professional living in Powell River, BC.  You can reach her by e-mail at brandypeterson@shaw.ca , on Twitter (@branpeterson).