Committed to making your mortgage approval process stress free and efficient for over 25 years, Sunlite Mortgage is one of Toronto, Canada’s leading mortgage brokerages.
Finding the perfect home for your family can be challenging, especially when prices exceed your budget. If you’ve been searching for months without success, the Purchase Plus Improvement mortgage could be your solution. This innovative mortgage option allows you to buy a home, renovate it, and include the renovation costs in your mortgage, reducing your immediate out-of-pocket expenses.
A Purchase Plus Improvement Mortgage enables homebuyers to finance a home’s purchase price and the cost of planned renovations through a single mortgage. This option is ideal for those looking to buy a house that needs improvements, as it allows for immediate upgrades and increased property value. At Sunlite Mortgage, our Purchase Plus Improvement Mortgage is designed to help you seamlessly buy and renovate your new home.
Consider the Johnson family of six searching for a spacious and functional home. They need four bedrooms, an office, and additional living space, but the move-in ready homes within their budget are priced between $1.1M and $1.4M. After much searching, they find a four-bedroom house with an unfinished basement for $900,000. This house is within their budget but needs an extra bedroom, bathroom, office, and rec room for the kids.
The Johnsons estimate the renovation cost to be $95,000.00. To keep their expenses under $1M, they plan to pay 10% of the renovation cost out of pocket. The rest is added to their mortgage. Their down payment would be $65,000, including 5% of the first $500,000 and 10% of the remaining $400,000. With an additional 10% of the $95,000 renovation cost, they would pay $74,500 upfront. If approved, the remaining $85,500 (90% of the $95,000) would be added to the mortgage, making the total mortgage amount $985,500.
Here’s a step-by-step guide to how this mortgage works:
At Sunlite Mortgage, we are dedicated to helping you achieve your homeownership dreams with innovative and flexible mortgage solutions. Our team of experienced mortgage brokers will guide you through every step of the process, ensuring you understand your options and feel confident in your decisions. We take pride in offering personalized service tailored to your unique situation, making the journey to your dream home smooth and stress-free.
If you’re considering purchasing a home that needs improvements or have questions about our Purchase Plus Improvement Mortgage, contact Sunlite Mortgage today. Let us help you transform a promising property into the perfect home for your family.
