Why would you get a mortgage for more than your house is worth? One reason would be to renovate it with a purchase-plus-improvements mortgage.
Some lenders will give you an extra 10% to enhance a property, figuring that the improvements will inflate the homes value accordingly. Note that the extra 10% is only reimbursed after you make the improvements. There are other catches as well, as this Toronto Star story explains.
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Last modified: May 1, 2007
