Mortgage Intelligence

Oshawa's Mortgage News Desk!


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This is how to buy and renovate

Many homebuyers looking at older properties find themselves in a common predicament: they’ve found a property that suits them, but it needs some costly and immediate upgrades.  Good news. We’re got a mortgage that will keep you financially afloat!

A “Purchase Plus Improvements” mortgage adds the cost of those immediate renovations into your mortgage, so you don’t have to rack up credit card bills or sell investments to pay for the upgrades.  This mortgage will cover the sale price of the home, plus any renovations that would increase the value of the property, up to $40,000. This way you can spread your payments over the life of the mortgage and have a cost-effective way to get into your dream home. You can then use your pre-payment privileges to pay the renovation off faster.

Here is an overview of the process:

  1. Obtain cost estimates for the upgrades.
  2. An appraisal with two separate values will be required: first the value of the property “as is” and the estimated value of the property once the improvements are completed.
  3. Your lender will add the estimated costs of the renovation into your mortgage.  The committed amount of the mortgage will be advanced to your solicitor, who will be instructed to hold back the renovation funds until the work has been completed and inspected.
  4. Complete your upgrades; funds are released upon completion.
  5. There are options we can discuss for carrying your expenditures until the funds can be released.

 So if you find a home with “great bones” that can be renovated into the home of your dreams, get in touch with the experts at MiMortgage.ca early. We’re here to make sure your homebuying journey has a happy ending.


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Home Ownership Strategies

Tips for Buying a Fixer Upper Home

Are you looking to buy a home but faced with budget constraints on how much you can afford on payments? A solution to this dilemma maybe a fixer upper home in the neighbourhood that you would like to live in.

Once you have your eye on a potential fixer upper home, getting a home inspection on the property and hiring a contractor to get an indication of any structural issues, repairs and renovations that maybe required and to get quotes on the costs involved is a smart way forward. Be sure to add an additional 30% or so to the estimated amounts for any other unexpected costs that may incur. Expensive renovations and upgrades include full kitchen, bathrooms, electrical, plumbing windows and repairs to the roof.  All renovation costs can be added on to your mortgage at the time of purchase.

To view video:

http://www.theglobeandmail.com/report-on-business/video/video-how-much-house-can-you-afford/article20465454/?videoembed=true

Read the article by Globe and Mail for more information.

If you have found the right home but need a fixer upper to make it your dream home, contact the team at mimortgage today. To get pre-approved today, apply now through our secure online website or speak to one of our agents at (866) 452-1100.