In Canada a mortgage is considered to be non-conventional or non-conforming if the buyer does not put down at least 25%For many first time home buyers, 25% down represents thousands of dollars and many people do not have the luxury of having that much money in savings before purchasing a home. We work with lenders that may be willing to loan up to 100% of the value of your new home with a few requirements: Your credit history must be good, with a credit score above 600 and 3 years of history on your credit report.You must have verifiable and stable income and employment for at least the past 2 years. There must not be any late payments reported on your credit report for at least 12 months. The mortgage principal, interest, property taxes, heating and condominium fees (if applicable) should not exceed 30% of your gross monthly income. Your housing costs and any other debts (ie. Car loans, credit card or student loan payments) must not exceed 45% of your gross income. The property must be close to a major urban center and must be completed. If you have had a past bankruptcy, it must be at least 2 years since being discharged. It is also important to have re-established your credit. 100% financing is what is considered a “high-ratio” mortgage because you essentially do not have any equity in the home. In order to offset this, you will be charged a fee and insurance fee from either CMHC, GE Capital or directly from the lender. Keep in mind that with any property purchase, you will be expected to have approximately 1.5% of the value of the property in cash to be able to pay for closing costs (ie. Lawyer fees etc.)What factors determine what a renovation is worth?
With Bad Credit, part of the mortgage approval process will involve the lender looking at the prospective property before making their decision. If you fall into this category, you may need to put an Offer to Purchase a property with the condition that you obtain financing. Once we have the Offer of Purchase & Sale, we can discuss your situation with a lender. It is very likely that we’ll be able to help you obtain financing through our network of alternative mortgage lenders.
We work personally with the lenders to get your application approved!
Don’t let past mistakes keep you from buying a home. Sometimes circumstances arise and you find yourself struggling to pay the bills. Your credit report only tells part of the story. Take control of your credit and work with your Calgary Mortgage Broker and get the home you deserve.
Even if you have had credit difficulties or a bankruptcy, this won’t automatically disqualify you from owning a home. There are that will look at your situation on an individual basis and we’ll be able to obtain a mortgage approval for you.
What It Is Worth to You
The value of Calgary home renovation projects has two components. The first is the value of the renovations to the homeowner. The value of having a jetted bath tub or play room in the basement is worth something to you, the homeowner.
One factor that determines the value of the home’s renovation is how the renovated home measures up to the norm of the community. Adding a pool, extra bathroom, and other features only significantly increase the value of your home when they raise it up to the standard of the rest of the community. Building a sunroom, adding a mother in law suite and other additions won’t have a good ROI if this isn’t commonly done in your community. When the renovation makes your home the most expensive one on the block, the rate of return on the renovations drops.
The community norms also affect renovations that might bring down a home’s value in other places. For example, a chain link fence around your yard decrease’s the home’s value unless other homes in the community also have a chain link fence.
Calgary home renovations firms should be able to tell you what renovations are keeping up with the Joneses and the neighborhood norms, as well as which projects won’t add much to the value of your home because no one else has what you want to put in.
Know What the Renovation Is Worth Compared to the Options
Upgrades in the bathroom and the rest of the house to allow someone to age in place are certainly worth the money if it means you can stay in your home a few more years. Renovations in lines with “universal design”, so that the home can be used by the elderly and disabled as well as everyone else, allow the home to appeal to a much broader demographic. Turning a basement into new bedrooms or a mother in law suite increases the home’s value by increasing the amount of livable space, but you should consider the cost of adding new rooms compared to finishing the basement or attic.
Not all renovations are worth it when compared to your options. The changes that make a kitchen restaurant grade are appreciated by the chef in the family, but it may not raise the home’s resale value. Its value is even worse when you consider how often the average family eats out. If your family is constantly gathered around the dining room table to socialize, consider renovating your living spaces so that they are better utilized instead of revamping the kitchen. Do not engage in a $15,000 kitchen renovation with the hope of raising the house’s sale value that much – it won’t.
Another factor to consider before you renovate is the cost of a comparable home to your own that already has the features you want to add. If the renovation costs $20,000 but buying a new home with that mother in law suite or fancy kitchen costs $35,000 more, renovating makes sense. If renovating your home to add two more bedrooms costs $50,000 and you can buy a home with more bedrooms for only $40,000 more, it is probably worthwhile to move.
Don’t neglect the option of making a number of small improvements instead of a large renovation. You could dramatically improve a bathroom by replacing the mirror, faucets, vanity and shower head instead of ripping out plumbing and walls to build essentially a whole new bathroom. Look at ways you could improve the lighting and décor of a room to give you more breathing room before you plan on ripping out a wall. Research ways that you could change the layout of your kitchen to improve the utilization of space before you give up the breakfast nook to make the kitchen feel bigger.
Discuss your options with a Calgary home renovations firm like http://www.corefront.ca/. You may find that a series of smaller changes will yield the home improvements you want for a fraction of the standard rehab project’s cost.