Purchase Plus Improvements

Thinking of building your dream home, or renovating a fixer-upper? Conexia Mortgage can help make financing those projects a reality.

Renovation Mortgages

Renovation mortgages allow you to renovate a newly-purchased or refinanced home – or build a new one – and roll the cost of any improvements into the balance of the mortgage. You’ll benefit from the low interest rate associated with a mortgage and the simplicity of one mortgage payment, while putting down less than 20% of the home’s ‘as improved’ value.

So, how do you qualify?

1. Make your offer conditional on a renovation mortgage program such as CMHC’s Purchase Plus Improvements program
2. et at least three quotes from contractors, on the renovation costs.

CMHC will approve a loan of up to 95% of the ‘as improved’ value of the home (or the value of the newly constructed home) if the money you’re putting into the home improves the value. Newly constructed homes can receive up to four monetary advances before the home is completed.

That means you will need to finance the renovations and improvements up front and submit your receipts. You will be reimbursed after the renovations are complete and the lender has had time to evaluate the as-improved value.

In the following example, you are able to renovate and improve the value of your home, without waiting until you could afford to do so.

Usual way of financing:

Purchase plus Improvements:

* The CMHC/GE premium used in these calculations is for a 25 year amortization. 0.20% will be added to the CMHC premium for every 5 years of amortization beyond 25 years.

If you’re thinking about renovating a new home but you’ve put down more than a 20% down payment, consider a Home Equity Line of Credit (HELOC) – a low-interest line of credit that is secured against your home.

Apply online or contact Conexia Mortgage to discuss your 100% financing options.