Mortgage Agent based in London and Windsor, Ontario
One of the most popular options for new homebuyers is the Renovation Mortgage, where you assume the costs of the renovations into your mortgage.
There are two types of Renovation Mortgages:
Financing the renovation at time of home purchase
For borrowers who want to make improvements to their home immediately after taking possession of the purchased property, the Purchase Plus Improvements Program allows them to do so with one manageable mortgage.
If you are planning major renovations to a home you are about to buy, you can add the cost to your mortgage. You will pay a lower interest rate than with a credit card or loan.
Essentially, at the time you apply for your mortgage, you will also estimate all of the costs associated with your renovations and add those to the mortgage. For first-time homebuyers this can be an extremely smart option as they may not have enough saved up to purchase the house and then immediately take on a huge renovation project.
Renovating an existing home
Since your home is likely your most important asset, renovations can be a great way to increase your property value and also make daily living more comfortable.
Many homeowners also use the home equity they have built up over time to help finance renovations. Your home equity – your home’s value minus the balance of your mortgage – is available for you to use for your home renovations. You can access up to 80% of your home equity by increasing the amount of your mortgage through a refinance.
A Renovation Mortgage can help make your dream home a reality!