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20 Aug

Older home versus new? Which is the best deal?


Posted by: Leonore Claypool

If you are looking at homes right now you’ve probably noticed there are some great deals on lived in homes versus brand new.  The BC tax and GST make the brand new home a little pricey compared to the older home. It’s hard to NOT LIKE the new kitchen with granite counter tops, all the the hardwood flooring and modern plumbing in these new homes.  And there’s nothing like the smell of new – even if it does cost more in today’s market.  So what if you found the right home in the right neighborhood that was the right size and you love it but it is outdated and needs work? Well you might just have found yourself a home with an upfront equity benefit that makes much more financial sense just like you see in the the “Love It or List It” show, The Purchase Plus Improvements mortgage will actually reimburse the costs to improve your newly purchased home. All you have to do is get quotations for the work (and before you remove subjects is best) for the materials only or labour and materials.  Then complete the work within 90 days of the purchase completion date. An appraiser confirms the work is performed and then your lawyer releases the funds that were held in trust.  So that $40,000 renovation is added to your mortgage at today’s low interest rate. It’s that easy! Not all lenders will give you 90 days and $40,000 is the maximum allowed so get the details from a professional and experienced Mortgage Broker so it all goes smoothly!