Renovation Mortgage – CMHC Improvement Program for New Construction/Renovations Whether you are thinking to renovate your existing home or purchase an older home with an intention to renovate it, right now is the right time to do it as it is now made possible with a new program from CMHC. All you have to come up with is as little as 5% of “as improved” value and let the bank finance the rest by giving you a manageable mortgage with one low monthly payment. The insured mortgage will be based on the lower of either the purchase price plus the actual cost of improvements or the "as improved" market value. Listed below are the examples of the renovations that add and do not add value to your home. Make sure to have a qualified contractor prepare a detailed description and a cost estimate for the proposed renovations/repairs to be submitted to your mortgage consultant. Renovations – what renovations add value? What types of renovations add value to your home?
- Improving the kitchen
- Adding/remodeling a bathroom
- Creating a master bedroom with an en suite bath and/or walk-in closet
- Adding a family room, especially on the main floor
- Creating a sun room
What types of renovations do not add value to your home?
- Adding a swimming pool/sauna/hot tub
- Installing a central vacuum system
- Reducing the number of bedrooms to fewer than three
- Installing paving stones in the driveway
Contact us today for more information on this program. |