Have you found a home that ticks all the boxes except maybe it has an outdated kitchen? We have a solution for you! A Purchase Plus Improvement loan is a type of loan that allows you to purchase a property and make improvements to it at the same time. This type of loan is especially helpful for people who are looking to buy a fixer-upper or a property that needs some work done before it is move-in ready.
When we apply for the mortgage, we would supply the offer to purchase along with all the quotes for the work to be done up front. The lender provides you with a loan that covers both the purchase price of the property and the cost of the renovations you want to make. The amount of the loan is based on the quotes provided and the purchase price. This means that you can borrow more than you would be able to with a traditional mortgage, which only covers the purchase price of the property. When the lender releases the funds it all goes to the lawyers, they provide funds to the seller and the improvements portion is held in trust until we can have an inspection done to confirm work is complete. Then the lawyer will release the funds to pay for the renovation.
There are several benefits to getting a Purchase Plus Improvement loan. First and foremost, it allows you to buy a property that you might not otherwise be able to afford. By including the cost of renovations in the loan, you can spread the cost of the improvements out over the life of the loan. This can make it easier to manage your finances and avoid taking on too much debt at once.
Another benefit of a Purchase Plus Improvement loan is that it can help you increase the value of your property. By making improvements to the property, you can increase its resale value and potentially earn a profit when you sell it in the future. This can be especially beneficial if you are buying a property as an investment.
A Purchase Plus Improvement loan is a smart choice for anyone who wants to buy a property that needs some work done. It can help you manage your finances, increase the value of your property, and make it easier to afford the improvements you need to make. If you are considering buying a fixer-upper, be sure to talk to your lender about the benefits of a Purchase Plus Improvement loan.
To learn more about this product reach out to Patricia 403.875.2969 or Stacey at 40.850.7738.
Visit our website at www.unbeatablemortgages.ca
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Patricia McKean, a Lead Planner with the Unbeatable Mortgage Team at Mortgage Architects in Olds, has over 20 years of experience in lending and has been successful in helping a number of our rural clients obtain mortgages in Alberta.
Mortgage Architects
Olds, Alberta
d. 403.875.2969 p. 403.637.0140 f. 866.465.2870
patricia.mckean@mtgarc.ca
PatriciaMcKean.ca