CMHC’s Purchase Plus Improvements Program

We had a chance to catch up with Riverside Mortgage broker Paul Hudson yesterday who shared with us a program that is becoming very popular for first time home buyers who want some of the benefits that come with a new home while paying the price for a property a little older.The program is called CMHC’s Purchase Plus Improvements Program.  A couple of great examples of people using this program are:

1) Spending $30,000 on upgrades to a $400,000 home with the type of kitchen and bathroom that you could have only purchased if you bought a $500,000 home

2) Spending $40,000-$50,000 in turning a home into an additional source of generating income by adding a suite

Overall, if you are looking for a product that offers a greater financing choice for you and your family by building a new home or undertaking a small or large scale improvement to an exisiting home where the improvements will increase the value of the property, this is the product for you!

Some of the features include:

  • Available for new home construction and purchase or refinance with improvements.
  • CMHC-insured advances during construction or improvement period with flexible advancing options to meet financing needs.
  • Loan-to-Value (LTV) ratios for purchase transactions: up to 95% for 1–2 unit and 90% for 3-4 unit owner-occupied properties based on as-improved value.
  • LTV ratio for refinance transactions: up to 80% for 1-4 unit owner- occupied properties.
  • No additional fees or premiums for progress advances.
  • CMHC offers mortgage loan insurance premium refunds for homeowners who make energy–savings renovations to an existing home. See CMHC Green Home for more information.For more detailed information we recommend getting in touch with Paul Hudson and he can explain the technical aspects of this program and fit to your needs.

For more information on construction costs, contact us for a free consultation.

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