License Number 10280Agents License Number M11000098

Residential Mortgages

Purchase plus improvement is just that.  You can purchase a home that needs renovations and get the extra funds to do so included in your mortgage, with as little as 5% down!             For those people that want to add a little TLC to their home for renos like

  • Kitchens
  • Bathrooms
  • Floors
  • Anything really.

Renovations need to be done by a licensed contractor and or someone who keeps a detailed portfolio of their work online. Total amount of renos can be up to 20% of the properties existing value or $40,000.00.

Acceptable Loan Purpose

  • Purchase transactions up to 95% or refinances up to 80% LTV
  • extended amortizations up to 30 years

Eligible Properties

  • Maximum 4 units with at least 1 unit as the principal residence
  • New construction only if the property has a tarion warranty.
  • Existing properties located in markets with demonstrated ongoing re-sale demand.
  • Estimated remaining economic life of the property should be a minimum of 25 years

The Process

  • Step 1: Go house shopping and fall in love with the home of your dreams that needs that little touch a have a good idea of what renovations need to be done and rough idea of how much it will cost.
  • Step 2: Leo Ragusa will get you a quick approval based on the existing purchase price.  You then go and get firm price quotes from contractors for all the work that needs to be done.  Make sure the quotes are detailed and specifically state the work that is to be complete.  Hand written quotes will not be accepted.
  • Step 3: Once i receive all the quotes then i will then have your mortgage approval revised to include the price of renovations.
  • Step 4: On closing you take possession as per normal of your new home and the renovations can start.   Please not that all work needs to be done by a contractor and proper permits need to be used.
  • Step 5: When the work is completed the lender will require proof by way of letter or appraisal in order to instruct the lawyer to release funds.
  • Step 6: Funds are released from the lawyer to you with a 10% hold back for 45 days to make sure that their are no outstanding bills/permits that need to be paid.  After that you will get the rest of the funds.

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