Trusted Tips and Resources

Trusted Tips & Resources

Your Mortgage Now your Trusted Saskatoon Mortgage Experts share a tip on adding Home Renovations to your Mortgage

Buying a home is one of the most important and exciting steps in your life.... now that pesky financing! Deal with people who can offer you and your family the best options for you with Your Mortgage Now! Devin Cristo and Wes Will are your Saskatoon Mortgage Experts and they have years of experience helping individuals and families finance their dreams by offering mortgages from a variety of lenders for people from all walks of life.

They are your Trusted Saskatoon Mortgage Experts!

Here they share a tip on adding Home Renovations to your Mortgage:

Are you having problems finding the right home? Maybe you have found a great home but the kitchen was outdated. You can stop overlooking these properties. There are mortgage programs available that can help you move into a home with a new kitchen or beautiful hardwood flooring.  

Both CMHC and Genworth Insurance offer a program called “Purchase Plus Improvements” which allows you to purchase a home, renovate it and incorporate the cost of the renovation into your new mortgage - for as little as 5% down payment based on the improved value of the home.

These improvements must be permanent to the home or property. For example, new windows, roofing, a new garage, bathroom renovations and kitchen renovations would all apply. A new washing machine or refrigerator would not because it is not a permanent part of the home. Although, a built in range or dishwasher would be eligible because they are permanently attached to the home.  

How It Works

Let’s say you were to purchase a home for $200,000 and wanted to do $30,000 worth of improvements, CMHC/GE will insure a mortgage based on 95% of the “improved value”. In this example, your down payment would be 5% of $230,000, or $11,500. This can only be approved if the renovations you make add value to the home. For this example, the insurer and lender would have to agree that the renovations increase the value of the home by $30,000.

When making an offer on a house, make the offer conditional for a longer than normal conditional period, if possible. Borrowers must provide a quote from a contractor, before closing on the house, which is then submitted, my your Mortgage Associate, to both the mortgage lender and CMHC/Genworth for approval. 


On closing day, the lender will submit the total mortgage amount to your lawyer. The improvement amount is held by the lawyer until the renovations are 100% completed and the added value of the home is confirmed by an appraiser. Since the funds will not be released to you until the work is complete, we recommend that our clients apply for an unsecured line of credit so the initial costs can be paid and work can begin. You also may be able to find a contractor who is willing to be paid for the work upon completion. 


The advantages of utilizing the Purchase Plus Improvement Programs are that the cost of the renovations are incorporated in a low interest mortgage.



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S & E Trusted Online Directories Inc
129 21st St E #400
Saskatoon, SK   S7K 0B2
Ph: 306.244.4150


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