Understanding Mortgages

Our lending specialists can provide you with more information on the following topics, and answer any additional questions you may have:

Pre-approved Mortgages

We can pre-approve your mortgage, in writing, to make house buying easier. When you're ready to buy, you've got the solid financial backing of Kawartha Credit Union. All our pre-approved mortgages come with a 90-day protected interest rate-guaranteed!

Take Your Mortgage With You When You Sell

If you choose to sell and are moving within Ontario, you can take your existing mortgage balance, rate and term to your new property, or you can choose a blended rate to finance your new home.

Protect Yourself

Buying a home is one of the biggest investments you'll ever make. Let us help you protect yourself and your family from life's uncertainties with mortgage insurance.

High-Ratio Mortgage

If your down payment is less than 20% of the property value, you’ll require mortgage default insurance offered by either CMHC, Genworth Financial Canada, or Canada Guaranty.

Mortgage Prepayment

If you choose to pay off your outstanding mortgage balance prior to your closed term maturity  date, or choose to pay an amount greater than the prepayment privileges outlined in your original mortgage documents, you will incur a Mortgage Prepayment charge.

Purchase Plus Improvements Program

Canadian mortgages insurers, Sagen and CMHC (Canada Mortgage and Housing Corporation) offer insured mortgages that include the added benefits of funding for home improvements. The Purchase Plus Improvements Program helps qualified home buyers add home improvement costs to their mortgage with as little as a 5% down payment. This feature allows borrowers to make improvements to their home immediately after taking possession.

Whether you need a new roof, a state-of-the-art kitchen or a backyard sanctuary, your mortgage will be based on the purchase plus the improvement costs up to the qualified percentage of the purchase price.

WHAT DO YOU NEED TO PROVIDE?

  • Offer to purchase
  • Contractor’s estimated costs for Kawartha and your insurer to review 
  • Pre-approval from the insurer and Kawartha 

HOW DOES IT WORK?

  • Funds will be held in a renovation account and will be disbursed as needed. You will be required to submit receipts for the construction work or repairs.
  • An appraisal may be required before and after the repairs.
  • A timeline to complete renovations/improvements must be provided (usually a 3 month timeframe.)

WHAT ARE THE BENEFITS?

  • Upon approval, a Purchase Plus Improvements mortgage allows you to buy a home, renovate it to your liking, and pay for it all in one mortgage payment. This flexible product enables you to not only buy a home that's more affordable because of the updating required, it also allows you the freedom to customize your renovations.
  • One payment under your mortgage without the need for additional lending solutions such as a line of credit or credit cards to fund the renovations.

WHY CHOOSE THE PERFORMANCE PLUS PROGRAM?

  • Easier access to home ownership and home equity
  • Purchase and upgrade a home to meet your unique needs 
  • Add renovation costs into the mortgage for one easy, manageable payment

THINGS TO CONSIDER

  • Are you planning on making your home energy-efficient?
  • What would your dream home include?
  • Are you planning on making renovations to your home?
  • What upgrades would you like to make?
Types of improvements possible:

  • Flooring upgrades
  • Kitchen and/or bathroom updates
  • Windows and doors
  • Basement finishing
  • Roof replacement
  • Family room upgrades
  • Energy-efficient upgrades

THE PURCHASE PLUS IMPROVEMENTS PROGRAM TURNS A HOUSE INTO A HOME!

Make an appointment with us today and we’ll help make your dreams a reality.

 Keys being passed