It seems like renovations are on everyone’s minds these days, fueled by an endless selection of home-improvement and flipping shows on television. I have to admit, watching home makeovers gives me the sudden urge to run to the nearest Home Depot. Most Canadians don’t have a ton of cash lying around, so refinancing your home to take out some equity is a great solution, especially given the rock-bottom interest rates that we see today.
The new mortgage rules limit homeowners to refinancing up to only 80% of the value of their home. However, a problem arises when there isn’t a ton of equity to take out. Most of the time, the 80% calculation is based on the value of your home the way it is now, before the renovations. Thankfully, there is a program called a Refinance Plus Improvements Mortgage that will allow a homeowner to refinance up to 80% of the value of the home, after the renovations. This means an additional 10% of the home’s value, up to $40,000, can be added to the mortgage!
Want to know more about this program? Give us a call at 647-684-8888. We are the best mortgage brokers in Mississauga at helping you with your mortgages!