Purchase Plus Improvements Mortgage

Need to renovate? Welcome to a seamless loan experience.

Not every property is move-in ready. If you've discovered the perfect home that requires some tender loving care, this mortgage allows you to combine the purchase price with renovation costs into a single, manageable payment, sometimes with as little as a 5% down payment.

Our Axe Mortgage brokers collaborate with multiple lenders to find the best mortgage fit and rate for you, simplifying the process and saving you money.

What is a Purchase Plus Improvements mortgage?

This program lets you finance renovation costs (up to a specified percentage) by adding them to the home's purchase price, resulting in one straightforward mortgage payment. After taking possession, you can commence the agreed-upon upgrades immediately. Before finalizing, you'll need to provide detailed quotes for the planned work.

What does this mortgage offer?

• Competitive interest rates
• Financing for renovations added to the purchase price, with mortgages available up to 95% Loan-to-Value (LTV) for purchases or up to 80% LTV for refinances
• Amortization periods up to 30 years, depending on the lender

Which properties are eligible?

• Up to four units, with at least one unit occupied as the primary residence
• Both new constructions and existing properties

How does it work?

1. Identify Needed Renovations: Once you've selected a property, determine the necessary upgrades and estimate their costs.
2. Initial Mortgage Approval: Your Axe Mortgage broker will secure approval based on the property's current value. You'll then need to obtain detailed quotes from licensed contractors for the proposed work.
3. Revise Mortgage Approval: With the quotes in hand, your broker will adjust the mortgage approval to include the renovation costs and finalize the mortgage details.
4. Commence Renovations: After closing and taking possession, you can begin the approved renovations immediately.
5. Inspection: Once the work is completed, a bank representative will inspect to ensure the renovations meet the agreed-upon specifications.
6. Release of Funds: Upon approval, the lender will instruct your lawyer to disburse the funds to pay the contractors.
7. Enjoy Your Upgraded Home: With renovations complete and all mortgage details settled, you can fully enjoy your enhanced living space.

Notes:

• The interest rate you're eligible for remains unaffected by this program.
• It's essential to have firm quotes before finalizing your mortgage.
• Funds for renovations are released only after the work is completed and inspected.