Purchase plus improvement (PPI) mortgages are mortgages where the lender will advance a mortgage loan based on the expected value of the home after it has been renovated. For example, if a home is being purchased for $1,000,000 and it will cost $100,000 to renovate, they will advance a mortgage based on a value of $1,100,000 versus just $1,000,000, even if the home will be worth more. The major benefit of this program is that it allows the purchaser to complete home renovations right away instead of waiting years to save up or build additional equity in the home.
This program is very attractive to individuals who have found the perfect home but need to make some improvements to it for it to suit their needs. For example, we have recently helped a younger couple with a new-born who both work from home obtain this type of mortgage to finish an unfinished basement (where their offices now are), and build the perfect nursery for their baby.
Book a free consultation with us to discuss whether this mortgage can be the right fit for you.
