This site uses cookies.

The types of cookies we use, and the way we use them, are explained in our Privacy Policy. By clicking "Accept" or continuing to use our site, you agree to our use of Cookies.
More information


Clarence Maquito, Real Estate Broker

Sutton Group-Admiral Realty Inc, Brokerage

Direct: 416-930-2021

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 you, as a buyer, may wish to make to your newly-acquired home.

This option eliminates the need to obtain secondary financing after the purchase to pay for improvements. You can obtain a single first mortgage, make a single mortgage payment, and benefit from first mortgage interest rates.

 

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, please call CMHC at (416) 221-2642 or visit www.cmhc.ca

 

EXAMPLE:

Purchase Price

$500,000

Renovations/Improvements Costs

$25,000

Total Cost

$525,000
 

Lending Value

$525,000

Maximum Mortgage (95%)

$498,750

Minimum 5% Down Payment

$26,250
Powered by Lone Wolf Real Estate Technologies (CMS6)