Not every house you see will be your dream home… but it can be!
With the Purchase Plus Improvements Program you can turn the almost perfect home into your dream home. This program allows you to add to the mortgage the renovation cost of your new property. The program is offered to borrowers who have a minimum of a 5% down payment. The lender will require that you supply a list of work to be completed and quotes for doing so. Confirmation of the finished product will be required by way of an inspection. How does this affect your financing? Consider the following example, based on a purchase price of $450,000:
|Estimated cost of renovation:||$40,000|
|Total home value (after renovation):||$490,000|
|Required down payment:||$24,500|
|Mortgage (excluding CMHC):||$465,500|
|Monthly mortgage payment:||$2,129.58|
|(based on 2.69% interest, over 25 years)|
In this example the cost of a $40,000 renovation is $173.84 per month, added to your mortgage.