CMHC - Lana Watier

CMHC Purchase Plus Improvements Program

CMHC Purchase Plus Improvements

Program

Canada Mortgage and Housing Corporation (CMHC) insured mortgage loans are available to cover the purchase price of a home as well as an amount to pay for immediate major renovations or other improvements that the purchaser may wish to make to the property.

This option eliminates the need to obtain secondary financing after the purchase to
pay for improvements. The homebuyer obtains a single first mortgage, makes a single mortgage payment, and benefits from first mortgage interest rates.

Details

The insured loan will be based on the lower of:

The purchase price plus the actual cost of improvements, or,
The “as improved” market value. Prior to approval, CMHC will determine the market value of the property after renovations/ improvements. The lending value will not exceed the market value of the property after renovations/ improvements.
Applicants must have the following:
A minimum of 5% down payment of total cost (purchase price plus renovations/ improvements).
Cost estimates for renovations/improvements.
Qualifications to obtain a CMHC insured loan through an approved lender.
For more information call CMHC at (705) 523-2900 or www.cmhc.ca.

EXAMPLE:
Purchase Price	$100,000
Renovations/improvements costs	$25,000
Total cost	$125,000

Lending Value	$125,000
Maximum Mortgage (95%)	$118,750
Mimimum 5% down payment	$6,250

CMHC Purchase Plus Improvements Program

Questions or Comments?

Courtesy Of Lana Watier