With a booming real estate market, low-interest rates and the rise of the home improvement trend, we decided to start a new blog series to help navigate this unprecedented time. Wading through a plethora of information can be overwhelming, we know! So we’ve asked Mortgage Consultant Meghann of The Mortgage Minds Inc. to walk us through various options when it comes to homeownership and home renovations.

Our first sit-down (virtual, of course) resulted in chatting about a good option for first-time homebuyers, or even as a buyer purchasing a secondary property as an investment or rental property. Enjoy our first foray into what we are now calling our Mortgage Moment.

Photo by Jacquie Troy Carter

The sunnier days of Spring may very well be here….or it could be Fool’s Spring….who knows in this Edmonton climate.

We know that with Spring, the real estate market usually starts to gain momentum. However, this year it’s already been hot for some time now, even in the face of a global pandemic.

Because of the pandemic and its lockdowns, industry restrictions and increased ‘work from home’ scenarios, we’re all forced to evaluate our living space and surrounding areas. Need more space? Want an outdoor retreat? Have you been driving around your ideal neighbourhood looking at inventory? Has your HGTV binge-watching fuelled the need to take on a construction project?

Whatever the motivation, it’s a seller’s market out there these days. More buyers are looking to buy than there is inventory to sell, which means the competition in the marketplace has increased.

This demand puts pressure on housing prices resulting in homes being:

• on the market for fewer days,

• going for above the asking price, and

• in some cases, facing a multiple offer situation.

That’s a tight real estate market. And because the demand is far outweighing the supply, it’s a fast market too. As if the idea of buying a home isn’t stressful enough, right?

Well, there’s good news. Mortgage interest rates are at historic lows across the country. So what does this mean? If you are looking to move and can afford to, now’s the time to take the plunge into the real estate market and lock in a reasonable rate.

The idea of purchasing can be intimidating (especially for first-time homebuyers). Still, there’s one way to ease the situation and get what you want: which is to purchase a house with potential in an ideal neighbourhood and turn it into your dream home.

Archive Project: Rhatigan Ridge Bathroom Renovation

How?
With a Purchase Plus Improvements mortgage.

What’s that?
The Purchase Plus Improvements program allows qualified home buyers to renovate their new home and include the improvements into their mortgage. Improvements can be up to $40,000 or 10% of the purchase price, whichever is greater.

Where can it be used?
New homebuyers can use this money for several renovations. However, they have to remain with the property.

This can include:

• a new kitchen or bathroom install,

• windows and doors upgrade,

• a flooring upgrade, or

• basement refinishing.

Archive Project: Holyrood Basement Development

Who does the work?
You must obtain a quote from a qualified contractor (this is where Archive comes in!) and provide it upfront with the Offer to Purchase. Once your mortgage lender approves the work, they will commit those funds to you at the same rate as your mortgage.

Is there a timeline?
Typically the work needs to be completed 90 days after the day of possession.

When do I get the money?
When the work is complete…which means you have to figure out how to pay for the improvements up front. In other words, only after the job is finished and an appraisal performed are the funds released.


More info please…
You probably have a lot of questions, so this is where we hand it off to the expert. Meghann is more than willing to talk about options. She can easily be reached on both Facebook and Instagram (@wendellmortgages) and is ready to answer all of your burning mortgage questions.

There IS one glaring question that we will answer in an upcoming blog post, though: What if I don’t want to move but want to improve? 

Don’t miss our April Mortgage Moment, where we tackle the options surrounding how to finance home improvements for current homeowners.