Clarence Maquito, Real Estate Broker
Sutton Group-Admiral Realty Inc, Brokerage
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
Maximum Mortgage (95%)
Minimum 5% Down Payment