Ask the Expert - Julie Sheremeto - Mortgage Broker
High school math teacher turned mortgage broker! A new calling and career that began a decade ago has become one of the largest passions in my life and is something I am thrilled to do every day. I have always had a strong desire to be able to help people and this role is a wonderful opportunity to make a difference in people’s lives. Solving problems has always been a passion and a part of my job – I’m thrilled to be able to continue to do so by helping clients with their home’s financing. After completing my B.Sc., a move to Ottawa for my B.Ed. quickly turned in to 14 years of running a small business and teaching high school mathematics. I graduated with a MMT (Masters in Mathematics for Teachers) in the spring of 2017 and have been mortgage brokering since then! I am a dual-province license holder in both B.C. and ON as I am able to share my time between Ottawa and Kelowna.
The Purchase Plus Improvements Mortgage
Have you been searching for your dream home but struggling to find something that fits your vision or budget? The Purchase Plus Improvements Mortgage might be the perfect solution for you. This program allows buyers to borrow up to $100,000 above their mortgage to fund renovations and upgrades, enabling you to turn an affordable house into your ideal home. Whether it’s a new kitchen, bathroom renovations, finishing a basement, replacing a roof, installing updated windows, or even adding ductwork and a furnace, this program gives you the flexibility to customize your new home to meet your needs.
A Purchase Plus Improvements mortgage is arranged the same was as a typical mortgage, during the financing period on your purchase offer. The added components to the regular financing process are: secure detailed quotes from licensed contractors for the proposed improvements & submit this to your mortgage broker. The lender can then approve the total loan amount based on your purchase price + the improvements less your downpayment. Once approved, the full amount being borrowed will be advanced to your lawyer on closing day: the seller gets what they are owed and the lawyer keeps the money for the improvements in trust. Once you take possession & complete the work, you provide your broker with the invoices & they arrange for an appraisal/inspection to confirm the work is done. This authorizes the lawyer to release of the balance of the funds to you (so that you can pay your contractor).
An added advantage of this program is that some lenders allow future rental income from a legal secondary suite to be factored into your mortgage qualification, increasing your borrowing power. This is particularly beneficial for those planning to create a legal rental unit, as it boosts eligibility and offers the potential for long-term income. They also allow for you to take draws as the work is completed, up to a maximum of 3! The Purchase Plus Improvements Mortgage is an excellent opportunity for buyers to maximize their investment, customize their home, and achieve their vision of the perfect living space.