An avenue open on the road to home renovations
Your house hunt has been long and exhaustive. You have seen many properties that may include both new builds and resale properties that may need a little TLC. You may be reluctant to make that offer on the home that has wonderful potential but may represent a fixer upper or at the very least can benefit from an overall modern punch and face lift. What is stopping you from buying this diamond in the rough? If financing this property in addition to coming up with the funds to cover much needed home renovations is putting a hamper on your decision to buy the property, you should explore options that will make this purchase affordable.
With Genworth Canada’s Purchase Plus Improvement Program, renovation costs can now be rolled into your first time mortgage and will represent one monthly mortgage payment. No need for additional financing or waiting years to see your home renovations come to fruition.
What is Genworth Canada- can they play a role in helping you cover much needed home renovations costs?
Genworth Canada is the largest private residential mortgage insurer in the country. The main role of Genworth Canada is to provide default insurance to lenders. This offers lenders the opportunity to set up extensive default insurance through Genworth to enable their clients to cover mortgages in the event of economic difficulties. You have no doubt heard of The Canadian Mortgage Housing Corporation (CMHC).
The CMHC also plays a similar role to that of Genworth Canada in that it insures mortgages, in particular mortgages that have less than the Twenty Five percent downpayment on a given mortgage. The main difference between these two organizations is that Genworth is privately owned, while the CMHC is a government body.
Another key to Genworth Canada’s role in the mortgage market is the different programs that they are able to offer homeowners. We have discussed The Homeowners Assistance Program offered by Genworth Canada in a previous article. Another program that can provide first time home buyers financial wiggle room while offering much needed flexibility in terms of upgrading and adding touches to their new home, is the Purchase Plus Improvement Program.
This program is a wonderful option for consumers looking to purchase a home that speaks to you but may need a few changes to reach its full potential. With the Purchase Plus Improvement program (PPI) you can roll in a home improvement loan with your core mortgage.
Just how does the Purchase Plus Improvement Program work
With the Purchase Plus Improvement program (PPI) you can roll in a home improvement loan with your core mortgage. Access to these home renovation funds, enables homeowners to make any upfront renovations to their new home as soon as you take possession which will ultimately add value to your home and provide you with an oasis in which to live in designed to your personal taste. The attractive feature of PPI is that a homeowner will only face one monthly payment to cover these costs.
The Purchase Plus Improvements program allows you to make improvements immediately after taking possession of your new home and have the costs rolled into one easy-to-manage mortgage. You can put down as little as a 5% down payment and access the funds as soon as you complete the renovations.
For example: if the house you are eyeing has a listing price of 290 thousand and you calculate that any renovation and upgrade costs will come in at around 20 thousand, the mortgage you will take out will be for 310 thousand ( less the 14,500 you will need to put down ).
This means that you will only need to worry about one monthly mortgage payment. You will not be on the hook for additional monthly home renovation costs. When you look at the rate of return you will make on your biggest investment (your planned house purchase ) rolling in home renovation costs from the outset makes financial sense.
Key home renovations to add overall value while increasing the enjoyment of your new home
Now that you are aware of one avenue that allows for upgrades and provides you with funds to design your home to your specific needs without taking out an additional home improvement loan, it is important to be clear about just what changes will add value to your home in the long term.
In no particular order, here is a taste of renovations that will give you the greatest bang for your buck and make your time in your home very enjoyable
- Upgrading your home to make it more environmentally friendly and cost efficient such as adding new windows and upgrading to a more efficient heating system.
- Adding new windows and doors will give your house an instant face lift while helping to keep energy costs down.
- Tiling and bathroom fixtures will add an immediate appeal and will attract attention when it comes to time to sell your property.
- Kitchen fixtures, flooring and a modern backsplash will instantly modernize your kitchen and provide a good return on your investment when it comes time to sell your home
- Adding patio stones, new decking and railings where needed will provide for instant curb appeal and you will see a return on your investment down the road.
- Don’t overlook finishing, or upgrading the basement of your new home which will be very appealing to future buyers and will provide for endless cozy nights with your family and friends while you live in your new home.
One monthly payment and a home that is truly yours
With the Purchase Plus Improvement Program you can now look at different options when it comes to your first home. The property does not need to be modern and turnkey. You can look at more affordable options that speak to you with the knowledge that you will be able to make any upgrades and renovations that suit your needs without taking out a home renovation loan on top of your new mortgage.
One monthly payment and the money you need to fix up and upgrade your property to truly make this your dream home. PPI will allow you to make those changes to add value to your home when you decide to sell, while providing you with a wonderful oasis in which to enjoy life in your new home.
To discuss this matter further, you can contact one of our brokers here.
If you would like to read more on home renovations, check out our blog post here.
