Does Your Home Need Improvements?
Many homebuyers looking at older properties find themselves in a common predicament: they’ve found a property that suits them, but it needs some costly and immediate upgrades. Increasingly, buyers are adding the costs of those immediate renovations into their mortgage, instead of racking up credit card bills or selling investments to pay for the upgrades. Knows as a “purchase plus improvements” mortgage, this type of mortgage covers the sale price of the home, plus any renovations that would increase the value of the property.
It makes a lot of sense to add renovation costs to your mortgage. You get a cost-effective way to get your dream home faster. And you can then use your pre-payment privileges to pay the renovation off faster.
The process is quite simple:
- Obtain cost estimates for the upgrades
- Get your appraisal – for the value of the property “as is” and the estimated value of the property once the improvements are completed
- Renovation costs are included in your mortgage
- Complete your upgrades
- Renovation funds are released by your solicitor upon completion