Click here to login



 




<< Back

Printable
Version
 

Mortgaging a Home That Requires Renovation

You found it – your dream home in the London, Ontario Area. However, it still needs some work……..


What if it didn’t have to be this way? What if you had a choice? Well you do! Consider doing this through a Purchase Plus Improvements mortgage. No need to put off doing your renovations for a later date! No need to add them to high interest credit cards or loans! Add your renovation costs directly onto your mortgage at the same time you close your purchase. Saving you time, money, and making it convenient! 

Start enjoying your home with the Purchase Plus Improvement mortgage. 
 
You should consider this if the improvements you do will increase the market value of the property,
 
  1. Inform your mortgage specialist of your plans so that they can present your offer, right from the start, to the mortgage lender as a “PURCHASE PLUS IMPROVEMENT” mortgage. 
  1. You will be required to provide written estimates for the labour and the improvements that will be completed. It is also important that you specify when the work will be completed by and by whom. 
  1. Your lender will review your estimates and assess the total value and provide an approval for these amounts. 

The Purchase Plus Improvement Mortgage is based on the new value of the home after improvements are completed. As well, your down payment will also be based on the new value of the home. 

On your purchase closing date, the lender will advance funds to your solicitor, for the value of the home including the improvements.  The amount of the monies for the improvements, will be withheld by the solicitor, until an inspection is completed by an appraiser, verifying the work is complete.  Upon receiving a satisfactory report from the appraiser, the solicitor will release the remainder of the funds.

HOME | BUYING | SELLING | ABOUT US | ADMIN | CONTACT US | SITEMAP
519-471-8888    London, ON
Sutton Preferred Realty Inc., Brokerage
Independently Owned and Operated
181 Commissioners Rd W
London ON
N6J 1X9
Copyright © 2007 Joyce Byrne Realtor
Web Design By: SmartWebPros.com Inc.