What is a purchase plus improvements mortgage?
Posted by Cody Tritter on
Purchase plus improvements introduction
Purchasing a previously owned home, that hasn’t been recently renovated, can mean that the new owners want to put some work into freshening things up. Home renovations have been very popular this year as Canadians moved to larger homes and set themselves up for move favourable work from home situations.
Many of our client’s who utilize our mortgage partners use what’s called a, “purchase plus improvements” mortgage to help make sure that they were borrowing the cost of the renovations at the very best rate. Purchase plus improvements mortgages can be a super useful tool for clients but they come with a little bit of fine print as well. Let’s take a quick look at the pro’s and cons.
Pros of a Purchase…
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If you have bad credit, getting started with the process of buying your first home can seem especially difficult. There are ways of buying a home, and getting the loan that you need, even if you have a poor credit score. Bad credit home loans have been established and are available for those that qualify for them. This means that your credit score may not be as big of an obstacle that you think it is for purchasing a home.
(house, garage(s), fences, larger sheds, driveways,) as well as other elements including encroachments, easements, right of ways, etc.
Unable to sell your home? One of the biggest challenges home sellers face is the unknown, whether it's because this is your first time exploring the resale market and selling your home, or you sold it much easier in previous times, home owners can sometimes be left in the dark as to why their home may not be selling . One of the most common misconceptions in the real estate industry is that a home not selling or getting much attention translates to it being priced too high, and often sellers who have previously been on the market approach us ready to list their homes are prepared to drop price significantly to get the job done. While price can definitely be a factor in your homes ability to sell, we will always explore any other factors that could be…