Two step mortgage example – renovation tips from Alair Homes on Vimeo.
David: “Hi this is David with Alair Homes. We are here today with our friends from Xeva Mortgage, Bernadette, and Veneesh. We are at a home that’s having a massive renovation and addition, and a home that was lifted off its foundation to make the basement usable. What’s unique about this, aside from lifting it, is that to make it happen and to create the financing for these clients who had lots of equity and had owned it for a long time, you guys had to structure a sort of a two-phase mortgage so the first phase was like a line of credit to allow them to have the working capital to pay for all of the drawings and the engineering and all of that frontline work.”
Veneesh: “Yeah so initially we had to get them the line of credit because they needed some capital to get the process started. So to get the process started they needed to come up with drawings like you just said, but also they needed some time as well. They needed five months or so to pick out all their finishings, go in detail with you guys so they could create a firm budget. So that’s why we needed the 2 phases. That was phase 1, phase 2 was the actual renovation mortgage.”
Bernadette: “That’s right. So that will then cover all the costing all the everything that you needed in order to finish the project. So in terms of this, you could own your home for quite awhile and then have the money to renovate it.”
“Yeah and just do it through a 2 step mortgage like that and it works. There’s a tip for the day on how to finance your big renovation project.”
Watch Our Other Renovation Tip Videos:
HOW TO FIND A BUILDER YOU CAN TRUST
HOW TO STAY ON A BUDGET WHEN RENOVATING
MORTGAGE TIPS FOR FIRST-TIME HOMEBUYERS
TO BUILD NEW OR TO RENOVATE YOUR HOME?
TWO-PHASE MORTGAGES TO FINANCE YOUR BIG HOME RENOVATION
MORTGAGES TO BUY AND RENOVATE HOMES
MAKE MONEY WITH YOUR HOME RENOVATION
WRONG FINANCING FOR YOUR RENOVATION? HERE’S HOW TO FIX YOUR MORTGAGE
WRONG FINANCING FOR YOUR RENOVATION? HERE’S HOW TO FIX YOUR MORTGAGE