Buying and Renovating a Home in Vancouver
Good news for prospective homebuyers! According to Mortgage Broker Katherine Martin, it is possible to buy property in Vancouver and have additional money available for home renovations!
This new mortgage program allows homebuyers to purchase property in the Lower Mainland while receiving additional funding for home improvement projects. This program is great for projects such as kitchen and bathroom renovations that can update and add value to a home.
According to Martin, the mortgage would be based on the purchased plus improved value of the house. The client would pay for the renovation upfront (through a line of credit) and then would be reimbursed once the work is complete. The homebuyer can borrow up to 20% of the initial value of the property (up to $40,000). A detailed list of the improvements is required including a copy of contracts outlining the scope of the work and cost estimates. A copy of the building permit is required if improvements are structural.
Martin also states that all work must be completed in 90 days. If the improvement is more than $15,000 an appraisal must be done to prove completion. If the improvement is below the value of $15,000 only paid invoices or receipts are needed.
This new program is excellent for giving prospective homebuyers the extra help they need in buying and improving a home. However proceed with caution: I would be happy to give you an idea of what renos make sense…..and where to minimize expenses when you buy and then renovate. For those interested in Vancouver real estate, please feel free to contact me with any questions you may have. As a third generation REALTOR®, I have strong knowledge of Vancouver’s housing market and renovations. I was raised on buy, reno and flip and have also renovated most of the homes I have lived in (well not me personally but I know how to call up contractors!) For more information on the new mortgage program for purchasing plus home improvements, please contact Mortgage Broker Katherine Martin.