Here is how the program works:
-you send a quote to myself during the offer stage or shortly after (must be provided no later then three weeks prior to your closing date)
-the lender and/or mortgage insurer will review the quote and determine if they will support the items in the quote (not all quotes are approved)
-after closing the items from the quote need to be completed with a company/corporation by a professional WITHIN 120 days of your closing date
-once ALL the renovations are complete you let me know (multiple payouts/access to the improvement funds are not allow)
-an inspector will go by and see if the items from the quote were completed (if any items were not competed, you will not receive the funds for those items)
-they will send the inspection to the lender for the lender's review and approval
-the lender will payout ONLY the amount from the quote(s) as ONE total amount only (multiple payouts/access to the improvement funds are not allow)
-the renovation funds will also require a down payment at the same percentage down as your purchase price (i.e. $400,000 price plus $20,000 renovation would require a down payment of $21,000 if putting 5% down)
The maximum improvement funds allowed is $40,000 however in some cases an exception can be made for more.
No self completed renovations will be allowed. The renovations must be completed with company/corporation by a professional.
The quote(s) needs to be submitted and approved by the lender and/or mortgage insurer (ie CMHC) during your financing condition period.
There is only ONE advance of the improvement funds and it is ONLY once ALL the work is complete. There are no exceptions to this.
The funds cannot be provided in multiple advances.
An appraiser needs to go by the property, at your expense, to confirm the work from the quote(s) was finished.
You have a MAXIMUM of 90 days to complete the improvements.
If the renovation total goes over budget, you WILL NOT be given additional funds. The additional amount will be your responsibility.
Any specific item(s) cost more than the original quote, regardless of the total of all the renovations being less, more or as per the quote, you WILL NOT be giving additional funds for the individual item(s). The additional amount will be your responsibility.
It's important to have access to savings or credit to cover any additional costs that may arise during the renovation that was not part of the original quote.
Your real estate lawyer may have a cost to release the improvement funds to you once the work is complete. Please see your real estate lawyer to determine the amount of this cost.
If any work was done that was not on the quotes, you WILL NOT be given the funds for that work. For example, the quote was for new windows and you did flooring instead.
You are charged interest on the improvement funds from the date your mortgage advances.
What will not be considered:
-removal of UFFI or hazardous materials or asbestos
-removal of knob and tube wiring or aluminum wiring
-painting on it's own
-installation of UV filtration
-removal of Kitec plumbing
There are NO EXCEPTIONS WHATSOEVER to the information noted above.
Andrew Thake is a seasoned mortgage broker with over 15 years of industry experience. He’s assisted more than 2,200 clients in finding their ideal mortgage solutions. Recognized for his excellence, Andrew has received high honours and awards, including the National Rookie of the Year from TD Canada Trust and recognition as a Top 10 Ottawa Mortgage Broker in 2023. He has also been inducted into the Hall of Fame at Dominion Lending Centres and has consistently received their Platinum Award during his tenure as a mortgage broker.
Andrew’s dedication lies in serving his clients and prioritizing their needs with an empathetic approach. Throughout the application process, he provides tailored, informed, and efficient services to ensure the best mortgage solutions for his client’s unique circumstances. The best part of Andrew’s job is when he gets to see the joy on his clients’ faces following their mortgage approval.