Your home is your most important asset, meaning any additions or renovations made to your house are an excellent investment, not to mention the extra-comfortable living environment.
But before you start dusting off your sledge hammer, you should think about the financing options for your remodeling or building project. A complete renovation through a contractor may saddle you with additional debt. Renovations on a line of credit may also become a slippery slope - once you've renovated one room, it's tempting to consider updating other rooms accordingly.
If you know going into the homeownership journey that you'll be making renovations, repairs, or additions to your new property, renovation & construction financing options are available to simplify the renovation process, and save you money on the project.
Sherwood's Purchase-Plus Improvements Program
Our Purchase-Plus Improvements Program (PPIP) covers the sale price of your home, as well as the renovations you'd like to add to enhance the value of the property.
PPIP's have historically-low interest rates attached to the mortgage, helping homebuyers save significant amounts of money on their home renovations. After getting quotes from a contractor, the Canadian Mortgage and Housing Corporation (CMHC) will review a loan of the 'as improved' value of the home.
Compared to a line of credit which will be up to 80 per cent of the property's market value, a construction mortgage provides an alternative for homeowners who only have 5 per cent of the down payment to buy the home they want, along with the improvements they need.