Here are some mortgage options available in Ontario for fixing up a home:

1. Purchase Plus Improvements (PPI) Mortgage: This mortgage allows you to add renovation costs to your mortgage when buying a home. For example, if you purchase a home for $400,000 and need $30,000 for renovations, you can take out a mortgage for $430,000, provided you have the required down payment. This option is suitable for minor to moderate renovations and typically requires:

    - A minimum down payment of 5% based on the improved value.

    - Detailed quotes from licensed contractors.

    - Lender approval before starting renovations.

    - Completion of renovations within a specified timeframe, usually 90 days.

2. Construction Draw Mortgage: This mortgage is ideal for extensive renovations or complete rebuilds. It releases funds in stages as the work progresses. Key features include:

    - Up to 80% financing of the property’s post-renovation value.

    - Requirement of a licensed contractor and detailed renovation plans.

    - Periodic inspections before each fund release.

3. Refinancing Your Existing Mortgage: If you already own a home and have built up equity, refinancing can provide funds for renovations. You can borrow up to 80% of your home’s appraised value, minus any outstanding mortgage balance. This option offers:

    - Potentially lower interest rates compared to other financing methods.

    - Extended repayment terms.

    - The ability to consolidate renovation costs into your mortgage.

4. Home Equity Line of Credit (HELOC): A HELOC allows you to borrow against the equity in your home, providing flexibility for ongoing or future renovations. Features include:

    - Revolving credit with variable interest rates.

    - Interest-only payments during the draw period.

    - Flexibility to borrow as needed.

5. Private or Alternative Lenders: For properties that don’t qualify under traditional lending criteria, private lenders offer more flexible options, albeit at higher interest rates. Considerations include:

    - Higher interest rates and fees.

    - Shorter loan terms.

Useful for properties requiring significant repairs before qualifying for conventional financing:

4. Home Equity Line of Credit (HELOC):

A HELOC allows you to borrow against the equity in your home, providing flexibility for ongoing or future renovations. Features include:

- Revolving credit with variable interest rates

- Interest-only payments during the draw period

- Flexibility to borrow as needed

5. Private or Alternative Lenders:

Private lenders offer more flexible options for properties that don’t qualify under traditional lending criteria, albeit at higher interest rates. Considerations include:

- Higher interest rates and fees

- Shorter loan terms

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