Can an Independent Mortgage Broker Get Me a Mortgage for a Former Grow-Op? (Updated August 28, 2024)
The short answer is yes—but the long answer? It’s no easy task. Securing a mortgage for a former grow-op property involves jumping through several hoops, but with the right guidance, it’s possible.
How Can You Get a Mortgage for a Former Grow-Op?
While it can be difficult, securing financing for a former grow-op property is achievable if the property has been fully remediated. The key to success is ensuring that all the necessary certificates and documentation proving remediation are available.
Most mainstream lenders, including big banks like CIBC, have strict requirements. The process starts with proving that the home has undergone full remediation. You’ll need documentation showing that every step of the remediation process has been completed according to municipal and provincial standards.
How Does Buying a Former Grow-Op Affect Property Value?
Financing a former grow-op in the mortgage broker channel is extremely limited. In Alberta, for example, only one lender typically finances such properties, leaving most buyers with a cash-only option.
This limited financing creates challenges for future resale value. Why would you buy a property that may be nearly impossible to sell later? The only reason that comes to mind is that buyers intend to make it a rental property or a forever home.
What Other Concerns Should You Have?
Beyond financing and property value, a home that was once involved in criminal activity, like a grow-op, can come with risks. These properties are often on the radar of criminals, increasing the potential for home invasions or break-ins.
Still Interested in Buying a Former Grow-Op?
If you’re determined to buy a former grow-op property, you’ll need the right team to navigate the complexities. I can connect you with a realtor experienced in these types of transactions and ensure you meet all the lender guidelines before you go shopping.
Call or text me at 403-807-8779, and let’s discuss your options.
