PROGRAM

The Purchase Plus Improvements Program provides mortgage borrowers the opportunity to do improvements in conjunction with the purchase of the home. The purchase and the improvements are combined into one mortgage and a single advance.

Transaction Eligibility

• Purchase, Business For Self (Fully Qualified & Alta A), Family Plan, Second Homes
• New to Canada, Rental Property Program (2 – 4 units), Owner-Occupied Rentals
• Flexible Down Payment Program

Transaction Information

• Purchase a home with as little as 5% down payment, 10% for Business For Self Alt A Program
• Existing requirements related to income, down payment and credit worthiness apply
• Gifted Down Payment from immediate family can be used
• Government Grant may be considered if pre-approved by insurer
• Credit Scores below 680 have lower affordability ratio requirements
• Lending Value is based on the lesser of the improved property value of the sum of the purchase price plus direct improvement costs
• Improvements cannot exceed 20% of the initial property value or $40,000.00
• Required Down Payment is the percentage of the total purchase price plus cost of the improvements
• Detailed Quotes for the improvements are required up front, prior to the mortgage application being submitted to a lender
• Improvements must be completed within 120 days of the purchase closing date, though some lenders may cap this at 90 days
• An Inspection Report is required to confirm the improvements have been 100% completed prior to funds for the improvements being released by the lender
• An Inspection Report may be waived in particular circumstances. An example would be improvements under $15,000 and then receipts would be required. Lenders differ on this aspect so ensure these requirements are understood upon receipt of the mortgage commitment.
• The proposed improvements must add value to the home to qualify
• Improvement Funds are Single Advance Only

Further requirements and/or qualifications may be applicable. Contact Chris Stewart to further discuss this mortgage program regarding your specific circumstances.