Purchase Plus Improvements

Purchase Plus Improvements
I’m sure you and your clients often come across homes that are almost perfect, but need a little work. The Purchase Plus Improvements program is great if the clients have room in their debt service ratios (how we calculate the amount they are approved for) because they can add up to $40,000 to their mortgage for renovations. Prior to closing the clients have to have quotes from contractors or quotes on materials if they are going to do the work themselves. If the lender and insurer approves it, the funds get added to the mortgage, and sit in trust with the lawyer until the work is completed. Once the renos are completed (most insurers/lenders want them done within 3 months), the insurer often sends in somebody to confirm the work was done before instructing the lawyer to release the funds. So…. This means that your client needs to either pay for the materials or work up front with the contractor, or they can work with a contractor that is familiar with the program and will accept payment upon completion. I have a list of contractors that are familiar with the program and take payment after the funds have been released.
 
Check out the Genworth page for a quick video on the program, and let me know if you have any questions!
 
http://genworth.ca/en/products/purchase-plus-improvements-program.aspx