Mortgage options for fixer-uppers

Extra funds for upgrading landscaping are available

It can be tough to get your foot in the door of a new house, but many lenders have come up with a variety of ways to help home buyers.

“Generally the lender will allow 10 per cent of the purchase price up to $40,000 (for home improvements). So, for a purchase price of $250,000, they will lend an additional $25,000 for improvements. Purchase price of $600,000, they will lend an additional $40,000 for improvements,” said Invis – Beyer Mortgage Services mortgage broker Paul Macara.

Macara grew up in Oak Bay and knows what it takes to get into the market here.

“There are a lot of fixer-uppers in Oak Bay, and having the funds to throw up a suite or do a kitchen reno – even though they don’t allow suites, but that’s what people are doing – makes a difference,” he said.

Extra funds for upgrading landscaping are also available. “I had one recently where they asked for $20,000 for landscaping and (the lender) estimated it would only add about $16,000 to the value, so that’s what they got.”

“There are so many house deals in Oak Bay where the people have been living in the home forever, so the house needs a little work,” said DFH realtor Cassie Kangas.

“A lot of people looking for homes really don’t know where the money is going to come from to fix them up. If you move to Langford you can buy a brand new house, but if you want to live in Oak Bay, you might have to do a little renovation,” said Kangas.

“Across the board, (most lenders) offer similar products,” Macara said.

In these cases, the buyer or contractor will have to pay for the improvements up front, then get their money back after the work has been done.

The process:

1. Obtain cost estimates for the upgrades.

2. Get your appraisal (done by lender) for the value of the property “as is” and the estimated value of the property once the improvements are completed.

3. Renovation costs are included in your mortgage.

4. Complete your upgrades.

5. Renovation funds are released by your solicitor upon completion/inspection.

Just Posted

VicPD honours seven citizens for their courage and dedication

Civic Service Awards presented at ceremony in Hall of Honour

Oak Bay volunteer fair aims to sow seeds of giving time

Oak Bay Volunteer Services hopes to attract the next generation

‘It’s just hair:’ Central Saanich woman chops her locks for Wigs for Kids

Wigs for Kids BC will receive two 12-inch braids from Brentwood Bay resident Liza Glynn

New orca calf in Salish Sea ‘healthy and active’

Birth cause for celebration but things still dire genetically, expert says

POLL: Should people have to license their cats?

The Victoria Natural History Society has sent letters to 13 municipalities in… Continue reading

Second fatal crash occurs in Alberni Valley

Traffic on Highway 4 is being re-routed as investigators are en route

Indigenous energy summit includes session on pipeline ownership options

Steven Saddleback of the Indian Resource Council says a session will feature presentations on financing models

Japanese grand champion Kisenosato retires from sumo

The 32-year-old Kisenosato was the first Japanese-born wrestler in 19 years to gain promotion to sumo’s highest rank

UPDATE: Accused B.C. high school killer found fit to stand trial

Gabriel Klein is accused in the 2016 stabbing death of Letisha Reimer at Abbotsford Senior Secondary

Right-wing, neo-Nazi, white supremacist groups an increasing concern: Goodale

Ten people died in April 2018 when Alek Minassian allegedly drove a rental van down the busy stretch in Toronto

Canadian stock exchanges to conduct lottery for ‘POT’ ticker amid high demand

The symbol became available after fertilizer Potash Corp. officially merged with Agrium Inc. in early 2018

VIDEO: Mattress fire at Cowichan Hospital under investigation

The Cowichan District Hospital was locked down on Tuesday afternoon due to… Continue reading

Most Read