× Our work Why it's free Our clients About us Our calculators Our tips & tricks Our rates Application Contact us Alert Career
Mark A. Barbieri

Mark A. Barbieri

Mortgage Broker

Language(s):
French
English

mbarbieri@planipret.com
(514) 984-8182

1, Ave Holiday , 530
Pointe-Claire, QC
H9R 5N3

Buying a property needing major renovation? Careful planning will bring big savings!

For some years, you can no longer refinance* a mortgage for more than 80% of the market value of a home. We have noticed that many of our clients return to our offices seeking mortgage refinancing in order to consolidate their debts. Sometimes this would occur only months after the initial purchase of the home. Often, this was due to the fact that the new owners had updated their homes, installing new hardwood floors, finishing the basement, putting in a new kitchen or bathroom. However, they made these improvements using their credit cards or personal lines of credit.

It could bedifficult for homeowners to refinance their home, especially if they only made a 5% down payment. It can take up to 8 years to accumulate enough equity to be eligible.

Because no one wants to pay high interest rates on credit cards (11%-19%) or even 7% on a personal loan, future homeowners must plan their renovations carefully before buying the property.

The purchase & renovation program offered by the Canadian mortgage insurers (CMHC, Sagen, Canada Guaranty) allows you to add the renovation costs to your mortgage.

Here is an example: You have just visited a beautiful home in a great neighborhood. It’s close to schools, has a beautiful yard and is in overall good condition. However, the kitchen and bathroom are very outdated and ruin the look of the home. The solution is simple, you get an estimate for the work and that amount will be added to the mortgage. Just be sure to have the estimates done before buying the home and signing the mortgage. You must inform your mortgage broker of your intention to renovate so we can inform the bank ahead of time. If you don’t, then you have to refinance, and all the aforementioned rules apply.

*Refinance: to negotiate a new mortgage on your property in order to access the accumulated equity.

The content of the present website is protected by copyright which is the exclusive property of Mortgage Planners – Mortgage Brokering Firm.

Subscribe to Newsletter

RATES OF

2024-03-28 00:00:00

TERMS BANKS MORTGAGE PLANNERS
6 months Fixed 7.94% 7.55%
1 Year Fixed 7.89% 6.79%
2 Years Fixed 7.49% 6.14%
3 Years Fixed 7.14% 5.09%
4 Years Fixed 6.99% 4.94%
5 Years Fixed 6.84% 4.79%
5 years Variable 7.65% 6.25%
Refinance Fixed or variable 10.40% 5.09%
3 year closed Variable 8.60% 7.20%
7 Years Fixed 7.10% 4.94%
10 Years Fixed 7.49% 5.79%
HELOC 8.20% 7.70%

Sign up for our alerts and receive one of the following:

  • Our Tip of the week, and/or
  • Our Monthly summary of our tips, and/or
  • 2-4 emails a year on major changes in the field, and/or
  • Renewal; 3 emails 8 months, 6 months, 3 months before the end of your mortgage loan, and/or
  • Tips and tricks for buyers; sequence of 24 emails over 24 weeks

In addition to receiving the information, you will have access to our calculators, our rates and our contact information.

Let us orchestrate the details of your mortgage!