If you're a homeowner in Ontario looking to make some renovations to your property, but don't have the funds readily available, you may want to consider getting a mortgage with additional funds for renovations. This type of mortgage is known as a purchase plus improvement mortgage and can provide you with the money you need to make your renovation dreams a reality.

Here's what you need to know about getting a purchase plus improvement mortgage in Ontario:

What is a Purchase Plus Improvement Mortgage?
A purchase plus improvement mortgage is a type of mortgage that allows you to borrow additional funds, usually up to 10-20% of the purchase price of the home, to make renovations or improvements to the property. This type of mortgage is available to homebuyers who plan to make renovations or upgrades to their new home.

How Does it Work?
To get a purchase plus improvement mortgage, you will need to provide the lender with detailed quotes or estimates from licensed contractors for the work you want to have done. The lender will then determine the value of the improvements and add this amount to the total mortgage amount.

For example, if you purchase a home for $500,000 and plan to make $50,000 worth of renovations, the lender may offer you a mortgage of $550,000 to cover both the purchase price of the home and the cost of the renovations.

Benefits of a Purchase Plus Improvement Mortgage
One of the biggest benefits of a purchase plus improvement mortgage is that it allows you to finance the cost of renovations or improvements without having to take out a separate loan or line of credit. This can be a more cost-effective way to fund your renovation project, as mortgage rates tend to be lower than rates for other types of loans.

Contact us today for more information or to be matched with one of our mortgage specialists to get you started!