Capital Mortgages opened in January 1999 and has since serviced thousands of clients and arranged several billion dollars in mortgages in Ottawa area.

Home Renovations That Can Increase Your Property’s Value

Thinking of selling your home? Lucky for you, Ottawa is currently experiencing a resounding seller’s market, with the average price of homes sitting at a historical all-time high. To generate even more income from the sale of your property, why not consider some of the following renovations to increase its total value?

Finish your basement

This is a great way to add more heated square footage to your home and increase your home’s value by about $50,000 on average.

Open up your floor plan to create space

Today’s buyers prefer open concept living spaces that combine the kitchen, living room and dining room. Invest in knocking out the walls between these spaces to create a wide-open, inviting room that will attract potential buyers.

Increase closet space

Living in Canada with four seasons, extra closet space for seasonal wardrobes is always welcome! 

Modernize kitchens and bathrooms

You don’t necessarily have to completely overhaul your home’s kitchen and bathrooms, but a minor remodel that will modernize them by incorporating new cabinet fronts or hardware will instantly boost your home’s value.

Improve your home’s curb appeal

A new front door, clean landscaping and nice outdoor lighting fixtures are just some of the ways that you can wow potential buyers when they first see your home. These are quick, easy improvements that greatly boost your home’s physical appearance upon first glance.

Replace carpets with hardwood floors

Carpeted floors are a thing of the past! Modern buyers are interested in hardwood floors throughout the house and will add in their own accent rugs to warm up a space.

Redo the roof

If your home is due for a new roof, replacing yours can recover 107% of its cost at the time of resale and will set your property apart from similar homes for sale in the neighbourhood.

Install a smart thermostat

These types of thermostats can adjust your home’s energy consumption and lower your utilities costs. They’re currently ranked as one of the three most-wanted home technologies by prospective buyers.


Follow us on Twitter, LinkedIn and Facebook!

Capital Mortgages opened in January 1999 and has since serviced thousands of clients and arranged several billion dollars in mortgages in Ottawa area.

What You Should Know Before Flipping A House

If you’re considering flipping a house, chances are you’ve watched a couple of HGTV episodes and figure the process is fairly straight forward. Buy a fixer-upper, give it some tender loving care and before you know it, you’ve made a sizeable chunk of change!

While the concept might seem simple, know that you aren’t necessarily guaranteed to turn that much of a profit – even if you’ve put a lot of money into the house. That being said, there is definitely money to be made in flipping homes, when done correctly. Here are some of our top tips for finding success:

Don’t skimp on location​

Your goal is to sell this property fast once you’re done flipping it. Buy in an area that you know people want to live in, and avoid speculating about which neighbourhoods are up and coming, or buying in an undesirable location purely because of the low cost of the property.

Expect the unexpected

You don’t truly know a property until you start peeling away at its layers. Always mentally and financially prepare yourself for the unknown, whether that’s mold in the bathroom or a foundation in need of repair.

Your time is worth money

​Keep in mind that all the time you spend communicating with contractors or doing the upgrade work yourself is valuable. That’s time you could be spending earning money elsewhere. It should be factored into your planning when deciding how much you’re willing to spend on a property, or sell it for once it’s flipped.

Have plenty of cash on hand

​Many new investors get ahead of themselves and buy a property without a sizeable down payment or money in the bank for repairs. It’s a dangerous game to rack up repairs on credit cards and rely on the notion that your home will soon sell and pay everything off. If you’re not adequately financially prepared, you could be in over your head before you know it.

Work with a contractor you trust

​Think of your contractor as your partner on this project. You’ll spend lots of time together and will be in constant communication. Their work directly contributes to the success of your flip, so be sure to work with someone you trust and that you know you can work efficiently with.

Follow the 70% rule

Experienced flippers follow the 70% rule when figuring out how much they want to spend on a house. ​The concept is that you should pay no more than 70% of the after-repair value of a property, then subtract the cost of your repairs. If the home is worth $200,000 and needs $30,000 in repairs, you should pay no more than $110,000 for it. ($200,00 x 0.70 = $140,000 – $30,000 = $110,000)

Stay neutral

​Try not to let your emotions cloud your judgement when flipping a home. Your goal is to sell this property, not live in it – try to look at everything objectively and from a financial perspective!


Do you have additional questions about securing a mortgage to flip a home? Give us a call at 613-228-3888 today.

Capital Mortgages specializes as a service-oriented brokerage that prides itself on integrity and maintaining a service level second to none in the industry.

What is a Purchase Plus Improvement Mortgage?

When you are preparing to purchase a new home, you will be introduced to plenty of new jargon related to your mortgage. Purchase Plus Improvement is one of the important ones – because understanding this term could end up saving you lots of money in the long run.  

Are you interested in purchasing a new home that requires renovations? Do you intend to do those renovations? Are these renovations capable of truly transforming the structure of your home (i.e. a new kitchen, bathroom, roof, flooring, windows or doors)? Do you need access to funds to complete those renovations right now? If you answered yes to any of these questions, then perhaps a Purchase Plus Improvement Mortgage is for you.  


How it Works: 

If you are certain that you will be fronting the bill for some home renovations in the new home you are purchasing, you can actually roll all of those dreaded renovation costs directly into your mortgage. The CMHC Purchase Plus Improvement Mortgage enables buyers to borrow as much as 10% of the estimated value of their home, post-renovation. If you believe you can renovate and improve the value of your home by $30,000, then you will be considered for a mortgage approval that tacks that amount onto your initial pre-approved mortgage amount. That means that all of those expenses are held and managed in one place.  

  • First off, you must outline what renovations are required and the estimated cost of these renovations. 
  • Next, you submit your mortgage application on the house as it currently is, and receive a pre-approval from your mortgage broker.  
  • Now is the hard work – you have to go and get specific quotes (with the exact renovation work that will be done).  
  • Present these quotes to your mortgage broker and your mortgage will be reassessed to include the cost of the quoted renovations. 
  • Now you have your new home and renovations can get underway immediately by a professional contractor or, yourself (but only material costs, not your labour, would be covered)! Do not go over the allotted maximum amount you were approved for. 
  • To confirm the completion of the renovations, a bank representative / appraiser will visit your home and cross reference the work with your initial documents.  
  • Your renovation funds will be released. 



Here is a real-life example of a purchase plus improvement mortgage situation after a 5% down payment is paid (which includes the renovation cost):

Home Purchase Cost: $350,000 

Cost of Renovations: $35,000 

Revised Purchase Price: $385,000 

Mortgage Amount: $365,750  

CMHC: $13,167 

Total Mortgage Amount: $378,917 

It is without a doubt that this Purchase Plus improvement Mortgage is the most effective and affordable way to finance big home renovations. If you are interested in learning more about this mortgage option, contact our team at Capital Mortgages today for more information. 


Capital Mortgages Inc is an independent brokerage in the Mortgage Centre Canada Network and one of Ontario’s leading real estate mortgage brokerages with offices in Ottawa and the valley.

6 Home Renovations to Boost Property Value

Whether they have just moved into a new property and it requires some TLC or you they are looking to make some updates to their current family home, the majority of homeowners will usually undertake some kind of renovation on their property while they live there. But did you know that there are some renovations that will not add value to your home? To help you avoid losing money on renovations that won’t give you a sufficient return on your investment, we’ve gathered together the top six home renovations that are guaranteed to boost the value of your property:


1) Manufactured stone veneer

Increase your home’s curb appeal, and reel in potential buyers, by updating your unsightly old vinyl or siding with manufactured stone veneer. This attractive update will give a huge facelift to your home and is almost guaranteed to recoup costs when selling.


2) Garage door

Consider replacing your current garage door with a modern-looking one with galvanized steel tracks. This update offers another boost to your home’s curb appeal while also providing a practical investment.


3) Deck

A well-made and good looking deck is certainly a worthwhile investment to your home. Often, a nicely installed deck will make you back the dollars spent on it. If you have a small yard, a deck will make especially good use of your outdoor space.


4) Front door

Potential buyers often make up their minds within the first 30 seconds of visiting a house. Make sure your home packs a punch with an attractive front door. Other things to consider are a nice-sounding working doorbell and a covered entryway or awning. Nobody likes the thought of getting drenched with rain (or snow!) when fumbling for their keys at the front door!


5) Floors

Floor renovations don’t need to cost a lot of money. Do you have hardwood floors that squeak? A few nails can take care of that. Do your wood floors need a refresh? Consider refinishing them. Are your floor tiles cracked or chipped? Replace them. Avoid wall-to-wall carpeting as this is not popular with potential homebuyers.


6) Walls

A fresh lick of paint on your walls is one of the easiest and most affordable investments you can make in your home. Neutral colours are most appealing to potential buyers so you might want to consider painting over any bright or bold colours. Before you put your home on the market, make sure to fix any holes, marks, or chipped paint on your walls.


You can also save money by choosing the right mortgage for your needs. At Capital Mortgages, we have the knowledge, experience and network to find you the most favorable financing now and for future terms. Contact us today to learn more.