Commercial & Construction Loans
What if Renovations are needed?
Looking
for Investment Property?
CMHC Purchase Plus Improvements
Canada Mortgage and Housing Corporation (CMHC) insured mortgage loans
are available to cover the purchase price of a home as well as an amount
to pay for immediate major renovations or other improvement costs that
the purchaser may wish to make to the property.
This option eliminates the need to obtain secondary financing after
the purchase to
pay for improvements.
The homebuyer obtains a single first mortgage, makes a single mortgage
payment, and benefits from first mortgage interest rates.
Details:
The insured loan will be based on the lower of:
- The purchase price plus the actual cost of improvements, or,
- The
“as improved” market value. Prior to approval, CMHC will
determine the market value of the property after renovations/ improvements.
The lending value will not exceed the market value of the property
after renovations/ improvements.
Applicants must have the following:
- A minimum of 5% down payment of total cost (purchase price plus renovations/ improvements).
- Cost estimates for renovations/improvements.
- Qualifications to obtain a CMHC insured loan through an approved lender.
| Example |
|
| Purchase Price | $100,000 |
| Renovations/ Improvments Costs | $25,000 |
| Total cost | $125,000 |
| Lending Value | $125,000 |
| Maximum Mortgage (95%) | $118,750 |
| Minimum 5% down payment | $6,250 |
Investment
Properties
When
you are looking at purchasing a rental property, it's substantially more
complicated than financing a home that you plan to live in. Qualifications
vary, and often it is not easy to find a lender willing to give you the
funds to make your investment dreams come true.
From student
rentals, to vacation getaway destinations, our knowledge will help guarantee
your success!
Titan Mortgage Group has the expertise and the know how to finance all
property sizes, from duplexes through to full-scale apartment buildings.
No matter what your particular rental property goals
are, leverage our expertise for your project and make us your partner
of choice.