A Mortgage to Fix-Up A Home in Ottawa

Are you in the market for a new Ottawa home? Perhaps you’ve been keeping an eye on the real estate market and have noticed a few homes that have been listed for longer than the average time. These homes may offer you the best opportunity to not only maximize value but also to get a home that matches your style and taste. Homes that have been on the market for longer than usual can be a great opportunity for buyers. Here’s why.

Many homes that have been on the market for a while need a little bit of TLC. But did you know that you can add the cost of improvements you plan to make on your home to your mortgage? That’s right! Lenders offer what they call a Purchase plus Improvements program. They will lend to you not only on the value of your home now, but also on the value you will add to the home with your renovation.

To be eligible for the program, the renovations must add value to the home and stay with the property if you were to sell it. So, a new bathroom works, but a new wine cooler or portable hot tub probably doesn’t. The maximum amount you can qualify for is $40,000, which is perfect for those who are looking to make moderate improvements.

Typical improvements that qualify for the program include roofs, finished basements, pools, garages, landscaping, painting, and of course, electrical heating and air, windows, and flooring. You can qualify for up to 95% of the value of the home after renovations, with a minimum down payment of just 5%.

In a slower-paced market, this program is fabulous. However, in a faster-paced market, it can be more challenging because you need to provide plans, including estimates from contractors or retailers for mortgage authorization.

Once you take possession of your new home, you will have 90 to 120 days to complete your renovations. This gives you ample time to make the changes you want to your new home before you settle in.

If you’re interested in learning more about the Purchase plus Improvements program, feel free to reach out to me and I can put you in touch with my favourite lender partners. This is a great opportunity for buyers, and I’m excited to help you take advantage of it!