14 Feb

Purchase Plus Improvements


Posted by: David Lloyd

Imagine you have found the home you want in the perfect neighbourhood all at a great price. The problem is… After the 5% down payment and other closing costs you will be unable to afford the improvements needed to make the house your HOME. 

We may have your solution!


A Purchase Plus Improvement mortgage may be for you.

What is a Purchase Plus Improvement mortgage you ask?

This is a mortgage where you will get the funds required to purchase the property AND the fund required to make the improvements need as well.

How does it work?

Example: Home Price – $275,000 | Improvement Cost – $25,000 | Total $300,000

1. You must qualify for the full $300,000 mortgage

2. Together we provide the lender and CMHC (if less than %5 down payment) with a professional estimate of the improvements to be done.

3. On the day of closing the full $300,000 will be forwarded from the lender to your Lawyer. Your Lawyer will send $275,000 to the sellers lawyer and hold the $25,000 for the improvements in his/her trust account.

4. You then have approximately 90 days (exceptions to 90 days can be made) to have the improvements complete. You will be responsible for the any costs incurred until the improvements are complete.

5. When the improvements are complete an appraiser will sent out to your property to confirm for the lender that the improvements have been completed as laid out in the original estimate.

6. The appraiser will notify the lender that the improvements are in deed complete.

7. The lender then notifies your lawyer that your $25,000 can be released. Your lawyer will contact you and either you will go pick up your cheque or the lawyer will mail it to you.



A) Although you will need a professional quote for the lender to get the approval, a professional contractor is not required to complete the work. If you are handy and want to take on all or some of the project(s) yourself, you can.

B) The improvements have to increase the value of the property by the same or more than the amount of money required to do the work. The lender and/or CMHC have complete control over estimated increase in value to your property. If the lender or CMHC believe the improvements are of a lesser value than the quote we will simply get a reply stating that you will only have for example $20,000 instead or the $25,000 in the quote. The decision to continue or not is yours

C) The maximum value of the improvements can not exceed 20% of the purchase price. 


If you have any questions as to what improvements will bring value please contact me and also ask your realtor.

David Lloyd



5 Jul

New Mortgage Rules and my Thoughts


Posted by: David Lloyd

New CMHC Rules as of July 9th 2012.


The sky will not be falling on the Kingston Housing Market any time soon. The New rules will likely slow the market somewhat and may stall home value increases but will not stop most people from buying. They rules all in all are not a bad thing for the market. Also… Don’t forget, if needed i’m sure the 30, 35, and even the 40 year mortgages could return. But I wouldn’t hold my breathe.


Here are the High-lights:


Maximum Amortization Period

  • The maximum amortization has been reduced to 25 years from 30 years.

Refinance Maximum Loan to Value

  • The maximum loan to value for 1-4 unit residential properties will be reduced to 80% from 85%. 

Introducing a new Maximum Purchase Price

  • The maximum purchase price or as-improved value for purchase plus improvement loans cannot exceed $999,999.99 (must be less than $1 Million).


Maximum Debt Service Ratio Limits


For clients with beacon scores less than 680

  • The maximum Gross Debt Service ratio (GDS) cannot exceed 35%.
  • The Total Debt Service (TDS) cannot exceed 42%


For clients with beacon scores equal to or greater than 680

  • The maximum Gross Debt Service ratio (GDS) cannot exceed 39%
  • The Total Debt Service (TDS) cannot exceed 44%


GDS = [(Principal+Interest+Heating+Municiple Taxs + 1/2 condo fee) / Gross income] * 100

TDS = [(Principal+Interest+Heating+Municiple Taxs + 1/2 condo fee + all other debts) / Gross income] * 100


These rules are subject ONLY to CMHC insured mortgages. For those with more than 20% down or in Equity we still have 30 year mortgages.


Any questions please feel free to ask

24 Jun



Posted by: David Lloyd

Thanks for visiting. 




19 Jun

Fitness Evaluation


Posted by: David Lloyd

Thank you for your intersest in our Complete Financial Fitness Evaluation.

25 Apr

Budgeting Tips


Posted by: David Lloyd

1. Focus yourself on Savings

        Use the 10% rule – Put away 10% of your earnings

2. Use Cash for all spending outside of bills.

         Take out cash at the beginning of each week and that’s all you get.
3. Reduce bad habits
          Smoking, Alcohol, Gambling, etc.
4. Share Responsibliity
          You want EVERYONE in the household on board
5. Paydown debt
           Debt is like an anchor!

6. Keep all receipts

            Coffee, Groceries, Gas, etc…

7. Analyze your spending

            Prioritize your purchase

8. Consult a Certified Financial Planner- CFP

            A CFP will help you build wealth based on your goals

9. Be Flexible – Don’t get frustrated

            Life is unpredictable. Costs will pop up that didn’t see coming


17 Jan

Refinance scenario 3


Posted by: David Lloyd



This is taken from a mortgage that I closed recently.

These Clients are now saving $620 monthly!

In this case the clients were smart and shopped around instead of simply renewing with thier current lender at the end of the term. We were able to beat the rate offered by 0.25% and save the clients hundreds per month.