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Purchase Plus Mortgages

Created: 27 March 2007
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Purchase Plus Improvement Mortgages allow Homeowners to Buy and Renovate all in the Same Mortgage

March 27, 2007  Vancouver BC  With a large portion of homebuyers purchasing older homes, a Purchase Plus Improvements Mortgage allows potential homebuyers to get a mortgage that includes both the purchase price of the home plus any upgrades the new homeowner would like to do to increase the values ot the property. For example, renovating the kitchen, adding space, remodelling or finishing a basement would all be considered improvements and can be consolidated into the new mortgage without having to get separate financing.

To qualify for this mortgage you need to find a home, get written quotes from licensed contractors or stores that provide products and home renovation services to be included in the mortgage application.

  • Homebuyers can borrow to a maximum of 95% of the purchase price of the home plus an additional 95% of the costs of the upgrades OR
  • Up to 95% of the future anticipated property value after the renovations as deemed by the mortgage insurer.

When the mortgage is advanced the lender holds the allocated funds for home improvement and advances the money for the renovations once the work is complete and inspected.

The Purchase Plus Improvement Mortgage is a great financing option for clients looking to consolidate their costs into one mortgage, explains Jared Dreyer , President of Dreyer Group Mortgages Inc. It is another example of the banks, trust companies and mortgage insurers working together to provide innovative lending solutions tailored to individual client needs. We see more and more niche mortgage products being launched into the Canadian Mortgage market every year. It can only be of benefit to consumers in the long run.

For more information on these new programs, contact Jared Dreyer, Accredited Mortgage Professional 604 649-5991