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Purchase Plus Improvements Mortgages


A Purchase Plus Improvements mortgage in Canada is a financing option that allows homebuyers to borrow additional funds on top of their mortgage to cover the cost of renovations or improvements to a property they are purchasing. This type of mortgage is designed to help buyers purchase a home that needs work and immediately finance the upgrades.

Did you find the home of your dreams, but the kitchen needs massive improvements and taking on additional monthly payments is to much?

The Improvements Program will allow you to up to $40,000 or 10% of the value of your home for improvement money - Built right into your nice low mortgage rate! Some exceptions can be made on larger amounts.

How it works:

Work directly with me to keep everything smooth and easy. It isn't complicated, however lenders vary on their submission process and their completion times. I make it easy to do complete. 

  •  Get Pre-Approval:

    •  Contact ME, your mortgage broker or lender to get pre-approved for a mortgage.

    •  Discuss your intention to apply for a Purchase Plus Improvements mortgage.

  • Purchase the Property:

    •   Complete the purchase of the property.

    •   Ensure funds for renovations are secured (upfront funding required).

  • Initial Planning:

    • Determine the scope of your renovation project.

    • Find a property you want to purchase that requires improvements.​

  • Obtain Quotes:

    • Get detailed quotes for the renovation work from contractors or stores like Home Depot or Rona.

    •  Ensure quotes itemize each item and labor costs.

  • Submit Quotes:

    • Your mortgage broker will submit the renovation quotes to your lender for approval.

    • Ensure the improvements are value-adding and approved by the lender (no appliances, hot tubs, or pools).

  • Loan Approval:

    • The lender will approve a mortgage based on the lesser of:

    • The improved property value after renovations.

    • The sum of the current property value plus the direct renovation costs.​

  • Renovation Funds Holdback:

    •  The lender holds back the renovation funds in trust until work is completed and approved.

  • Complete Renovations:

    • Use your own funds, a Home Depot/Rona card, or other financing to start and complete the renovations.

    • Keep all receipts and documentation of paid expenses.

    • You usually have between 90 and 120 days to complete the renovations. 

  • Final Inspection:

    • Notify your mortgage broker or lender when renovations are complete.

    • If renovation costs are under $15,000, submit receipts for reimbursement.

    • If renovation costs are over $15,000, arrange for a lender-certified appraiser to inspect the completed work (at your cost).

  • Release of Funds:

    • Once the final inspection and appraisal report confirm the increased property value, the lender will instruct the lawyer to release the holdback funds to you.

  • Rental Properties (if applicable):

    • Note that there are limited lenders for rental properties.

    • Confirm with your lender about the availability and conditions for rental property improvements.


Share Information:

  If you know someone planning renovations, share this process with them to help them navigate the Purchase Plus Improvements mortgage.

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