Is Renovation On Your Mind?
In the past 4 years many changes have occurred in the mortgage industry. So many lending guidelines have restricted how lenders will approval a client, how much they are willing to lend based on the value of home last but not least how is a client’s income derived. This has restricted borrowing for renovation
The refinance ceiling on residential homes is now 80% of the value. In other words if your home is worth $200,000 the maximum mortgage amount that you can be approved for at re-finance is $160,000.
Renovation Financing under the new Mortgage rules is quite restricted.
This is where the old adage, “where there’s a will there’s a way” comes into play. Canada’s Mortgage Insurers, CMHC, Genworth and Canada Guaranty have approved a mortgage option called Refinance and Improve.
Using this very simple option allows you to re-finance to the “Improved Value” thus raising the ceiling on the amount of equity you can take from your home to renovate.
We have created a brief video to explain just how it works. Don’t let the tighter mortgage guidelines of the past 4 years stop you form making the improvements that allow you to enjoy your current home even more!