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Don't Wait to Renovate!

By Jim on Sep 30, 2013

Don't you just love these home renovation shows that magically turn those run-down, out dated houses into unbelievable show homes? The renovations take place in a blink of an eye and every homeowner just happens to have an extra 50K on hand to facilitate the renovations. The one missing piece of the puzzle that they do not address is how can anyone actually afford to complete these renovations?

In the past, many people would buy "fixer uppers" with the plan to complete renovations over time with cash/savings that they would eventually consolidate into the home by refinancing the mortgage. Well, those days are behind us.

With the barrage of changes that we have seen in the mortgage industry over the last two years, the ability to upgrade/renovate your home is a casualty that has not received much attention. The inability to refinance your home for more than 80% of it's value has made it nearly impossible for many homeowners to complete renovations or to consolidate the costs of such renovations into their mortgage. As a result, if people are buying with the intention of renovating they would be wise to plan to renovate right away and take advantage of the Canadian Home Renovation Plan and the Purchase Plus Improvements Programs offered by the major mortgage insurers in Canada.

The process is as follows:

  1. Find the right home
  2. Get a detailed quote for the work to be done
  3. Get mortgage approval for the purchase plus the work to be done
  4. Purchase funds are transferred at possession
  5. Complete the improvements
  6. Completion of the improvements confirmed via inspection
  7. Improvement funds are released by the lawyer

 

As easy as the process sounds, it can be very time sensitive and can benefit greatly from choosing the right people to be involved. This is where the Canadian Home Renovation Plan comes into place. As a CHRP Professional I can help you make sure that the right players are involved from the Real Estate Agent, lender, lawyer and contractor all the way to the final inspection.

Contact us today for your own personal Strategy Session including your Mortgage Pre Approval with your CHRP Renovation Credit.

Call Jim Henheffer today!

Suite 200, 1212 9th Avenue SE
Calgary, Alberta, T2G 0T1
Phone : 403–837–7542
Fax : 1–888–837–9133
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Canada Mortgage Direct Jim Henheffer

VERICO Canada Mortgage Direct Inc. Each Verico Broker is an independent owner operator.