Friday 16 November 2007

Real estate continues to climb

Canada's real estate scene is showing no sign of the weakness sweeping through the U.S. market, as sales and prices continue to rise.

Saturday 3 November 2007

CMHC Purchase Plus Improvements

CMHC Purchase Plus Improvements Program Canada Mortgage and Housing Corporation (CMHC) insured mortgage loans are available to cover the purchase price of a home as well as an amount to pay for immediate major renovations or other improvements that the purchaser may wish to make to the property. This option eliminates the need to obtain secondary financing after the purchase to pay for improvements. The homebuyer obtains a single first mortgage, makes a single mortgage payment, and benefits from first mortgage interest rates. Details The insured loan will be based on the lower of: The purchase price plus the actual cost of improvements, or, The “as improved” market value. Prior to approval, CMHC will determine the market value of the property after renovations/ improvements. The lending value will not exceed the market value of the property after renovations/ improvements. Applicants must have the following: A minimum of 5% down payment of total cost (purchase price plus renovations/ improvements). Cost estimates for renovations/improvements. Qualifications to obtain a CMHCinsured loan through an approved lender. For more information call CMHC at (416) 221-2642 or www.cmhc.ca. EXAMPLE: Purchase Price $100,000 Renovations/improvements costs $25,000 Total cost $125,000 Lending Value $125,000 Maximum Mortgage (95%) $118,750 Mimimum 5% down payment $6,250

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