Ontario Purchase Plus Improvement Program: Upgrade Your Home

Imagine finding your ideal home in your favourite neighbourhood, only to realize it needs some upgrades to become perfect. Whether it’s a modern kitchen, a luxurious bathroom, or a finished basement, funding these renovations on top of a mortgage can feel overwhelming. Fortunately, the Purchase Plus Improvement Program offers a smart solution that lets you customize your new home from the start without added financial strain.

What is the Purchase Plus Improvement Program?

The Purchase Plus Improvement Program allows you to roll the cost of home improvements into your mortgage, enabling you to finance both the purchase of your home and the renovations in one simple package. This means you get a single loan, often with a lower interest rate than personal loans or credit cards, giving you the freedom to transform your house into your dream home from day one.

Why Choose the Purchase Plus Improvement Program?

1. One Simple Payment: Simplify your finances with a single mortgage payment that covers both the purchase price of your home and the renovation costs. No need to juggle multiple loans or credit lines.
2. Lower Interest Rates: Benefit from mortgage interest rates, which are generally lower than those for personal loans or credit cards, helping you save money in the long run.
3. Increase Home Value: Renovations can significantly boost your home’s market value, making this a smart investment for your future.
4. Personalize Your Space: Customize your new home to perfectly suit your lifestyle and needs, without the hassle of moving again later.

How It Works: A Step-by-Step Example

Take Sarah and John, for instance. They’re excited to buy their first home but discover that the kitchen and bathrooms need updates. They don’t want to exceed their budget by paying for renovations out of pocket. Here’s how the Purchase Plus Improvement Program benefits them:

1. Pre-Approval: Sarah and John get pre-approved for a mortgage that includes renovation costs. They work with their lender to outline their renovation plans and determine how much they can borrow.
2. Finding the Perfect Home: They find a house listed for $400,000. After getting contractor estimates, they determine that the kitchen and bathroom renovations will cost $50,000.
3. Appraisal and Approval: The lender appraises the home’s post-renovation value at $450,000. The mortgage is approved for this total amount.
4. Closing the Deal: At closing, the funds for the purchase go to the seller, while the renovation funds are held in escrow by the lender.
5. Starting Renovations: Contractors start the renovations, and the lender releases the funds from escrow as the work is completed and inspected.
6. Moving In: Sarah and John move into their newly updated home, with all costs rolled into one manageable mortgage.

Tips for Success

• Detailed Planning: Create a clear renovation plan and obtain accurate quotes from contractors to avoid unexpected costs.
• Professional Guidance: Work with experienced real estate agents and mortgage professionals to smoothly navigate the program.
• Contingency Fund: Set aside extra funds for any unforeseen expenses that may arise during the renovation process.
• Timeline Management: Understand the renovation timeline and coordinate your move-in date accordingly.

Why This Program is a Game-Changer

The Purchase Plus Improvement Program empowers you to make your new home truly yours from the moment you move in. By incorporating renovation costs into your mortgage, you benefit from lower interest rates and the simplicity of one payment. Moreover, this program not only enhances your living experience but also boosts your property’s value, making it a smart investment.

If you’re ready to turn a good house into your dream home, the Purchase Plus Improvement Program can help you get there. Our team of experts is here to guide you through every step, ensuring a smooth and rewarding path to homeownership.

For additional benefits and options, don’t forget to explore Ontario’s First-Time Home Buyer Programs, which offer various incentives to help you on your journey.

Useful Resources:

• Canada Mortgage and Housing Corporation (CMHC) – Purchase Plus Improvements
• Sagen (formerly Genworth Canada) – Purchase Plus Improvements

Transform your new home with the Purchase Plus Improvement Program and make every corner truly yours!