• Kiki Berg, Licensed Mortgage Expert

Did you know you can ADD your renovation costs into your mortgage?


DId you find the home of your dreams, but the kitchen needs massive improvements and you can't afford it upfront? Is your current mortgage coming up for renewal and you want to take out money for renovations?

The Improvements Program will allow you to up to $40,000 or 10% of the value of your home for improvement money - YUP built right into your nice low mortgage rate! Some exceptions can be made on larger amounts.

This program is fantastic for both buyers and refinancing!

  • Selling? you need $ to instantly increase the value of your home with renovations

  • Buying? No need to save up first, spend then renovate and then refinance

  • Got a property emergency? (septic tank, new roof, new furnace, new water heater).

How it works:

Work with your broker directly to keep the process smooth and easy.

  1. Get quotes for all the work you want to have done. You can do this with HomeDepot or Rona. It will itemize not only each item, but labour costs as well. You can get a separate labour cost from a construction company. Remember, labour costs DON'T add value, so watch for those labor costs to not be inflated.

  • Appliances, hot tubs, pools are not allowed to be factored into the renovation costs. Only tangible and actual "value adding" upgrades.

  • The new loan is based on the LESSER of the improved property value after the renovation is complete OR the sum of the current value plus direct costs associated with the improvements.

  1. Your broker will submit an approval application with Insurer for their improvements mortgage along with all the quotes.

  2. You will need to have funds UPFRONT to cover the cost, as funds are held back at the lawyers office until the work has been approved and fully completed.

  • You can open a Home Depot / Rona Card or fund it from your own sources.

  1. Keep all receipts of paid, direct costs of your renovations.

  2. When your complete, let me know and I will submit your receipts to the lender for approval. If your costs are under $15,000 usually just receipts are required; if over $15,000 an inspection by lender certified appraisal will be required (your cost). Each lender has different protocol on how this step is completed.

  3. Once the appraisal inspection report is confirmed and completely properly, and the increased value is in place, the lender will let the lawyer know to release the money back to you.

  4. Rental properties have limited lenders.

Let's get started! Maybe you have a friend or family member that is talking about renovations...pass this along.

To your renovations success

~Kiki

#renovations #refinancing

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