Affordable homes are sometimes those that require major renovations. In an interview given to Le Journal de Montréal, our mortgage broker Véronique Caron explains how to incorporate these renovations into your mortgage financing from the moment of purchase.
Financing renovations with your mortgage
To finance your renovations, the idea is to target a property priced below your pre-approval amount, which allows the cost of the work to be added to the mortgage. The lender then bases their decision on the future value of the home once the renovations are completed. To do this, a detailed contractor estimate must be submitted before the purchase, and the funds are released in stages according to the progress of the project. This type of financing allows the purchase and renovation costs to be combined into a single loan, simplifying the financial management of the project.
What to plan before getting started
Unexpected issues can arise, which is why it’s important to have sufficient financial cushion to cover cost overruns or unplanned additional work. Véronique Caron also recommends a thorough pre-purchase inspection, which can help you better plan your renovations and negotiate the purchase price based on the property’s actual condition. Good preparation reduces surprises and helps you approach renovations with greater peace of mind.
The support of a mortgage broker: a real advantage
Renovating a home at the time of purchase can be a great opportunity, provided you have the right financing structure. A Multi-Prêts mortgage broker can guide you through this process, help you choose the right product, and ensure your project is realistic from start to finish. Their expertise can help you avoid costly mistakes and optimize your chances of success.