Purchase Plus Improvements Mortgage – Pre Purchase Renovations

The Purchase Plus Improvements Mortgage lets you apply mortgage funds to a renovation right at the time of purchase.

How A Purchase Plus Improvements Mortgage Works

With a Purchase Plus Improvements Mortgage you’ll be able to iron out all those little imperfections that come with every home, even a dream home.

You can use the funds you receive to complete improvements or upgrades immediately following the purchase of a home, thereby truly creating your perfect home, ready for your enjoyment.

Providing you meet all lender mortgage application qualifications, you may qualify for up 20% of the purchase price, or $40,000 (whichever is less), for improvements or upgrades, thus increasing the value of the property.

These funds must be used for improvements to the property, as opposed to general use such as appliances (i.e. chattels).

Best place to live Canada

An Example Of The Process

  • You must provide a list of planned improvements, with quotes, at time of the mortgage application.
  • Lenders then value the home based on the value of the planned improvements, as determined by the quote(s) you provide. Because this is the number the lenders work with, the amount of the required down payment is now based off of the new, post-renovation value of the home.
  • The initial advance of funds will be up to 95% of the approved value of the property, minus the cost of improvements.
  • The money to be used for improvements is held at the real estate lawyers office until the work is completed.
  • The work can be done by yourself or by a contractor, but sweat-equity labor cannot be factored into the quote, only the cost of the materials (i.e. funds are only released for materials).
  • Once the work has been completed, an inspection report from a certified appraiser is required to confirm that the work was completed, and is of acceptable quality.
  • Once the lender approves the report, then the lawyer is advised to release the funds.
  • If the final costs are less than expected then the remaining funds are applied back against the mortgage.


We’re ready to get you into home ownership by finding you the best mortgage rate that fits your lifestyle. Take the next step and get your mortgage application started.