What is it? You can borrow additional money above the purchase price to cover renovations or upgrades to your new home, like finishing a basement or upgrading the kitchen. How to get it? You work with your bank or mortgage broker to get pre-approved for the total amount you’ll need (purchase price + estimated improvement costs). For example, say you are purchasing a home for $500,000, but it needs a new roof, or you’d like to finish the basement, and that will cost $50,000, and say that means the home would therefore be worth $550,000 instead of $500,000. Therefore, instead of borrowing $500,000, you borrow $550,000 and your basement is finished. You get all that extra finished sqft without having to come up with that $50,000 out of your own pocket. Instead, it’s in your mortgage. Why it’s exciting: Instead of saving up separately for renovations, you can roll everything into one mortgage with a lower interest rate than using credit cards or personal loans! Your mortgage broker can help find the best deal and guide you through submitting improvement estimates. This makes buying and upgrading your dream home easy and affordable from day one!
BASEMENT ESTIMATE
Available Upon Request.
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