Renovation Loans

Transform Your Home with the Purchase Plus Improvement Program

Imagine stepping into a house in your favourite neighbourhood, already picturing the perfect kitchen, a sleek new bathroom, or a cozy finished basement. But the reality of funding these upgrades on top of a mortgage feels daunting. Enter the Purchase Plus Improvement Program – a revolutionary solution that allows you to tailor your new home right from the start, without financial stress.

What is the Purchase Plus Improvement Program?

The Purchase Plus Improvement Program enables you to combine the cost of home improvements with your mortgage, letting you finance both the purchase and the upgrades in one convenient package. This means a single loan often with a lower interest rate than other borrowing options, giving you the freedom to make your new house feel like home from day one.

Why Choose the Purchase Plus Improvement Program?

1. One Simple Payment: Manage your finances easily with a single mortgage payment that covers both your home’s purchase price and the cost of renovations. No need to juggle multiple loans or credit lines.
2. Lower Interest Rates: Enjoy the advantage of mortgage interest rates, which are typically lower than personal loans or credit cards, saving you money over time.
3. Boost Home Value: Investing in renovations can significantly increase your home’s market value, making it a smart financial decision.
4. Personalized Living: Customize your new home to perfectly suit your needs and style, all without the hassle of moving again.

How It Works: A Real-Life Example

Meet Sarah and John, a couple eager to buy their first home. They find a charming house in their dream neighborhood, but the kitchen and bathrooms need updating. They don’t want to exceed their budget to cover immediate renovation costs. Here’s how the Purchase Plus Improvement Program works for them:

1. Pre-Approval: Sarah and John get pre-approved for a mortgage that includes renovation costs. They outline their renovation plans with their lender and establish how much they can borrow.

2. Finding the Right Home: They discover a house listed for $400,000. Contractor estimates for kitchen and bathroom renovations come to $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 purchase funds go to the seller, and the renovation funds are held in escrow by the lender.

5. Starting Renovations: Contractors begin the renovations, with funds released from escrow as work is completed and inspected.

6. Moving In: Sarah and John move into their newly updated, customized home, all under one mortgage.

Tips for Success

• Detailed Planning: Develop a clear renovation plan and obtain accurate quotes from qualified contractors to avoid unexpected costs.
• Professional Guidance: Collaborate with experienced real estate agents and mortgage professionals to navigate the program smoothly.
• Contingency Fund: Reserve extra funds for unforeseen expenses during the renovation process.
• Timeline Management: Understand the renovation timeline and plan your move-in date accordingly.

Our Thoughts

The Purchase Plus Improvement Program is an empowering tool for homebuyers looking to tailor their new homes to their tastes and needs from the start. By integrating renovation costs into your mortgage, you benefit from lower interest rates and a single, manageable payment. This program enhances your living experience and boosts your property’s value, making it a wise investment.

Ready to turn a good house into your dream home? Discover how the Purchase Plus Improvement Program can work for you. Our team of experts is here to guide you every step of the way, ensuring a smooth and rewarding journey to homeownership.

Useful Links:

• 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 of your house truly yours!

Back to Ontario’s First-Time Home Buyer Programs: Your Ultimate Guide.