Monday, February 05, 2007

CMHC Purchase Plus Improvements Program


CMHC Purchase Plus Improvements Program

This program is brought to all Canadians by the Canada Mortgage and Housing Corporation (CMHC).

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 (416) 221-2642 or www.cmhc.ca.
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

Example:
Purchase Price $100,000
Renovations/improvements costs $25,000
Total cost $125,000
Lending Value $125,000
Maximum Mortgage (95%) $118,750
Minimum 5% down payment $6,250

For more information please contact A. Mark Argentino or visit my website

A. Mark Argentino Associate Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS 905-828-3434
FAX 905-828-2829
E-MAIL mark@mississauga4sale.com
Website: Mississauga4Sale.com

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