irene and neil slideshow renovation seminar
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TRANSCRIPT
Presenters:
Irene Kiemeney & Neil WoodConsumer Lenders,.
Renovation SeminarMay 1, 2013
Everything you need to know about financing your renovation
• What are the benefits to renovating?• What’s involved in setting a renovation plan?• Debt ratio• Financing options• The SCU advantage
What are the benefits to renovating?
• Increased market value of your current home
• Energy savings
• Additional living space
• Easier maintenance
• Improved comfort
• Aesthetic appeal
Get a quote:
• Two reputable renovators, or• A supplier/installer regarding construction materials
Make allowances in your budget:
• Upgrades and Features• Appliances• Moving expenses for extensive renovations• Window coverings or furniture
What’s involved in setting a renovation plan?
Debt ratio
The affordability rule:
Mortgage payment (principal & interest)
+
Property taxes + utilities =
32% or less gross household income
+
Other debt payments =
40% or less gross household income
Financing options:
•Loan•Line of Credit•Refinancing your Existing Mortgage •Mortgage and Secured Line of Credit
Refinancing your existing mortgageHow much equity do I have?
$350,000 (Current market value of home) x 85 % (Maximum advanced ratio available)$297,500
$297,500 (Maximum financing available)-$200,000 (Less outstanding mortgage balance) $97,500 Available equity for the renovations
How much is my mortgage?
$200,000 Outstanding mortgage balance +$ 97,500 Available equity for renovations$297,500 $ 5,206.25 CMHC insurance premium (1.75%)$ 364.44 (RST Fee must be paid in cash)$ 302,706.25 Total mortgage amount
• Monthly or semi-monthly• Bi-weekly or weekly • Variable Rate• Fixed Rate**
• Variable Capped**
** 90 day fixed rate guarantee
Mortgage payment options
$ 97,500 Available Equity
+ 200,000 Outstanding Mortgage
Total Mortgage required$297,500.00
$ 97,500 Available Equity
+200,000 15% equity
$ 297,500+ 5,206.25 CMHC Premium
$ 364.44 RST (paid cash)
Total Mortgage Required$302,706.25
Uninsured SCU Mortgage CMHC Insured Mortgage
Did you know…You only need 15% equity!*
You just saved yourself $5,206.25 with an SCU Mortgage!
Mortgage and Home Secured Line of Credit
$350,000 Current market value of home x 80 % Maximum advanced ratio available$280,000
$280,000 Maximum financing available-$200,000 Less outstanding mortgage balance $80,000 Available equity for the renovations
Benefits:• Multiple advances• Interest charged only on amount borrowed• Additional funds are made available at a later date without having to refinance
• 15% down* (without CMHC premiums)
• Competitive Interest Rates• Flexible payment options• Fast, Efficient, Local Decision-Making• Personalized Service with Attention to Detail
The SCU Advantage
*Subject to qualifications
Winnipeg Branches Extended Hours to Serve You
Winnipeg1575 Lagimodiere Blvd. 204 661.15752100 McGillivray Blvd. 204 222.2100
Extended Hours: Thursday Evenings ‘til 8:00 pm & Saturdays ‘til 3:00 pm
Applications and questions can be submitted via email, by phone, or in person
Irene Kiemeney Neil [email protected] [email protected] 654-8585 204 928.7854
Questions?
Thank you!