1. Presenters:
Irene Kiemeney & Neil Wood
Consumer Lenders,.

2. Renovation Seminar
May 1, 2013

3. 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

4. What are the benefits to renovating?
• Increased market value of your current home
• Energy savings
• Additional living space
• Easier maintenance
• Improved comfort
• Aesthetic appeal

5. 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?

6. 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

7. Financing options:
•Loan
•Line of Credit
•Refinancing your Existing Mortgage
•Mortgage and Secured Line of Credit

8. Refinancing your existing mortgage
How 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

9. 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

10. • Monthly or semi-monthly
• Bi-weekly or weekly
• Variable Rate
• Fixed Rate**
• Variable Capped**
** 90 day fixed rate guarantee
Mortgage payment options

11. $ 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!

12. 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

13. • 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

14. Winnipeg Branches
Extended Hours to Serve You
Winnipeg
1575 Lagimodiere Blvd. 204 661.1575
2100 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 Wood
ikiemeney@scu.mb.ca nwood@scu.mb.ca
204 654-8585 204 928.7854

15. Questions?

16. Thank you!