You’re pre-approved for a mortgage! You’ve been shopping with location in mind, but unfortunately the perfect property isn’t jumping out at you. Finding the perfect property (within your price range) is a difficult task, especially for first time home buyers. So, before you go and let buyer’s fatigue set in, maybe you should consider adding the cost of renovations into your purchase. Let me introduce you to the purchase plus improvements program!

When purchasing a home, buyers can add the cost of home upgrades into their mortgage. The program is designed to allow for 10 per cent of the purchase price to a maximum of $40K to be added to the mortgage for renovations and updates. This is a great option if you can’t find something move-in ready, and aren’t afraid to do a little work!

Sounds simple enough. In all honestly, though, it’s quite the process, and there are some pretty strict rules to follow. You must provide quotes to the lender ahead of time for the work that you would like to complete. It is good to note that the renovations will have to increase the value of the property accordingly. Secondly, the lender doesn’t give you the money to do the renovations – you have to come up with that yourself. Once the work is complete, (verified by an appraiser) the lender will reimburse you via your lawyer’s trust account.

Obviously, this program isn’t for everyone. Buying a home is a stressful endeavor to begin with. The added stress of having to undertake renovations right away might not be a good idea. But then again, if you have the financial wherewithal to handle the cost of renovations, and like the idea of making it yours from the start, then this might be just the option you have been looking for!

If you would like to know more about the purchase plus improvements program, and how this program might work for you, please don’t hesitate to contact me anytime!

Customer Service Numbers:

CMHC: 1-800-668-2642
Genworth: 1-800-511-8888
Canada Guaranty: 1-866-414-9109

ATB: 1-800-332-8383
B2B: 1-800-263-8349
BMO: 1-877-895-3278
Bridgewater: 1-866-243-4301
CIBC: 1-800-465-2422
CMLS: 1-888-995-2657
Optimum: 1-866-441-3775
Equitable: 1-888-334-3313
Connect First: 403-736-4000
Chinook Financial: 403-934-3358
First Calgary Financial: 403-736-4000
First National: 1-888-488-0794
Haventree: 1-855-272-0051
Home Trust: 1-855-270-3630
HSBC: 1-888-310-4722
ICICI: 1-888-424-2422
Manulife: 1-877-765-2265
MCAP: 1-800-265-2624
Merix: 1-877-637-4911
Marathon: 1-855-503-6060
RBC: 1-866-809-5800
RFA: 1-877-416-7873
RMG: 1-866-809-5800
Scotiabank: 1-800-472-6842
Servus: 1-877-378-8728
Street Capital: 1-866-683-8090
TD: 1-866-222-3456