How To Work The Cost Of Renovations Into Your Mortgage

Let’s Talk Purchase Plus Improvement Mortgages

With the tightening of the mortgage lending industry, we have noticed that buyers are qualifying for less. This might push a buyer to settle for a home that doesn’t match all of their wants. Or, you might fall in love with the area or bones of a home but want to upgrade certain things.
This is where a purchase plus improvement mortgage might be a good option to consider.

Here Are 5 Things to Keep in Mind When Considering This Option:

1) You will need to cover the initial cost of the renovations and the funds will be reimbursed once the work has been inspected and completed. (Most people consider a line of credit to finance the renovation until funds are released)

2) You must complete the renovation within a certain time frame. Usually 3 to 4 months. Extensions are granted sometimes.

3) Some lenders require you to keep and submit receipts for all work completed.

4) An appraisal is generally completed during the conditional period, prior to renovations starting and an inspection upon completion to verify renovations have been done. These inspections may be an additional cost to you.

5) Your down payment is based off the purchase price AND the improvement cost combined. (eg. Purchase price of $350,000.00 + $40,000.00 renovation = total down payment calculated on $390,000.00)

#6 3608 50 Ave
Red Deer
T4N 3Y6

Do You Have a Question?

Privacy Policy

Not intended to solicit buyers or sellers, landlords or tenants currently under contract.The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by CREA and identify the quality of services provided by real estate professionals who are members of CREA.

I am authorized to trade in real estate in Alberta pursuant to the Alberta Real Estate Act. I am publishing a list of out-of-province listings for purchase and sale on this site and this does not constitute a trade in real estate or any offer of services for those listings. Please contact listing agents directly for out-of-province listings.

REALTOR® contact information provided to facilitate inquiries from consumers interested in Real Estate services. Please do not contact the website owner with unsolicited commercial offers.  

Subscribe To Our Newsletter

Subscribe To Our Newsletter

Join our mailing list to receive the latest news, resources and updates from our team.

You have Successfully Subscribed!

Sellers Home Prep Guide

Sellers Home Prep Guide

This guide is an incredibly detailed breakdown on how to properly prepare your home for sale. Please leave me your contact information and I will deliver this to your inbox :)

You have Successfully Subscribed!

Pin It on Pinterest

Share This