Purchase Plus Improvements Mortgage in Ottawa
Investing in a purchase plus improvements mortgage can help you get the most out of your new home, right off the bat.
Borrowing Made Simple mortgage brokers can help you find a lender that will support your renovation goals. For professional guidance, at the very best rates, set up a consultation with one of our specialists today by calling (343) 763-2019.
What Is a Purchase Plus Improvements Mortgage?
A purchase plus improvements mortgage or a renovation mortgage is a loan that is tacked onto your home mortgage at the point of purchase. This loan is used to pay for renovations to the property. A renovation mortgage allows the purchaser to use the post-renovation value of their home, to invest in updates from the start, while enjoying the convenience of a single mortgage repayment.
Can You Add Home Improvements to a Mortgage When Purchasing?
When you invest in a mortgage plus improvements package, you will be able to add the cost of your proposed renovations to your mortgage loan. While many homeowners wait years saving for upgrades, investing in a renovation mortgage will allow you to enjoy your dream home now, and pay later.
It’s important to note, however, that you must qualify for a renovation mortgage. Once you find the perfect property, you must have the renovation costs estimated, before applying with a lender. If the lender approves the value of the mortgage plus improvements, you will be able to move forward.
What Is the Best Way to Borrow Money for Renovations?
At Borrowing Made Simple, we encourage new home buyers to inquire about a purchase plus improvements mortgage if they are moving into a property that needs immediate updates.
A renovation mortgage is the best way for qualified purchasers to finance home improvements because:
- It allows you to get started on renovations, and reap the benefits right away
- You can slowly write off the investment over the years by incorporating it into your regular mortgage payments
- Interest rates are typically lower and more favorable than that of other unsecured loans
Can You Get a Mortgage for More Than the Purchase Price?
If you are adding the cost of home improvements to your mortgage through a mortgage plus improvements program, the mortgage amount will typically be more than the purchase price of the home, depending on how much money you are putting down.
The money designated to cover the cost of renovations will not be released until the repairs are complete. Once completed, the home will need to be professionally inspected and re-appraised before the loan is provided. At which point, the homeowner can pay off contractors and other expenses.
Find the Best Rates for Your Renovation Mortgage with Borrowing Made Simple
At Borrowing Made Simple, we have been assisting home buyers with all their mortgage needs for years. If you are interested in purchasing a home that needs updating, we will work with you to find the right renovation mortgage.
To get started today, get in touch with our experts and schedule a consultation.
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