Tagged : renovations

Before embarking on an expensive move, consider renovating instead?

Move to a larger, more suitable home in your neighbourhood or stay put and renovate what you have? Finish the basement or build an addition? And most importantly, what would each scenario cost?

There are many Canadian's faced with the choice between moving or improving to increase usable square footage. Back in 2012, Canada Post released numbers indicating that of the 850,000 people who changed addresses, 37% moved to upgrade their home for family reasons. More recently, Altus Group measured the boom in Canadian residential home renovation spending, valuing it at $68 billion in 2014, roughly $20 billion more than what was spent on new builds.

Families grow, possessions multiply,

If you fall in love with a fixer-upper, you may find yourself in a tough spot figuring out how to pay the mortgage and cover the cost of renovations or postponing renos until you can afford them.

 Main Benefits of a Purchase-Plus Improvements Mortgage:

The little-known CMHC improvement mortgage (previously known as the purchase plus improvements program (PPIP)) allows home buyers in that scenario to borrow money to buy and immediately renovate a home with funds from their mortgage lender rather than taking out a separate line of credit that usually carries a higher interest rate and adds another layer of complication to their financial life.

PPIP is generally available with as little as five per cent down. However, buying with less than 20 per