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Purchase + Improvements/Renovations

Finding the 'perfect' home sometimes meaning buying 'less-than-perfect' and making the improvements to make it perfect!

 Purchase + Improvements/Renovations

You've found a home you want to buy however it needs some updating. It could be an old bathroom, tiny kitchen, flooring or even a new roof BUT you don't have the extra cash on top of down payment and closing costs.

We can help you get the funds for the improvements included in your mortgage!

Here's how it works

Once you have found a home you will need to get quotes from a contractor for the work being done. These quotes are then added to the purchase price and this becomes the new value of the home. Your minimum down payment is then based on the new value.

The quotes are sent to the lender along with the offer to purchase for approval. The lender and mortgage insurer must review the quotes to ensure they will add dollar for dollar to the value of the home. Sometimes an appraisal is necessary to determine this.

On closing the funds are sent to your lawyer who will then hold them in trust until the work is complete. Once the work is finished we will order an inspection from an appraiser who will complete a report and send it to the lender. Once the lender reviews and is satisfied with this report the lawyer will be instructed to release the funds to you.

Don't Forget These Important Documents!

Under the current rules, you can add up to 20% of the purchase price to a maximum of $40,000 into your mortgage.

One important note is that you cannot change the type of work being done after funding. In other words you can't supply a quote for a new roof and decide to finish the basement instead.

Here's an example:

Purchase price of home $260,000
Upgrades $15,000
New Value $275,000
Minimum down payment $13,750 (5% of new value)
Mortgage Amount $261,250 (plus CMHC/Genworth)

Top 10 Reasons to Use a Mortgage Broker

Ready to make your perfect house?

We know that each situation is a bit different, which is why we look for specific solutions for each purchase. We have the experience to guide you through your 'purchase plus improvements' mortgage and we would be happy to help you find out if this is the right solution for you.

Get In Touch
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Trust Kingston Mortgage Solutions to work hard on your behalf to find the best mortgage option and rate solution for your new home, debt consolidation/refinance, renewing mortgage, commercial mortgage or whatever your mortgage need is.

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Full service Mortgage Brokerage providing custom mortgage solutions for your purchases, renewals and refinances. 613-507-5626 (LOAN). FSRA Lic#12248

YGKmortgages
ygkmortgages YGK mortgages @ygkmortgages ·
26 Jan

Three things you may not know about the mortgage process!

1) We can do everything virtually

2) We work with 60+ lenders but there are 6-10 lenders that we work with closely

3) A pre-approval is a preliminary review by the lender but the property must also be approved

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ygkmortgages YGK mortgages @ygkmortgages ·
25 Jan

Following the recent Bank of Canada announcement today of a .25% increase in the overnight lending rate, the Prime rate will increase again. This will affect anyone in a variable or adjustable rate mortgage.

Any questions about fixed, variable or adjustable rates, reach out!

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200 - 654 Norris Court
Kingston, ON K7P 2R9

613.507.LOAN (5626)
1.877.366.3487
info@kingstonmortgagesolutions.com

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