Purchase Plus Improvements
How It Works
Purchase Plus Improvements
This program lets you roll the cost of planned renovations directly into your mortgage — so you can buy and improve in one step, based on the home's after-improved value.
You Fund the Improvements Upfront
The cost of renovations is paid by you at the time of completion. The lender includes the improvement amount in your mortgage, but those funds are not released until the work is fully completed. You front the cost — the mortgage reimburses you once everything is done.
Proof of Paid Invoices Required
Before the lender releases the improvement funds, you will need to provide proof of paid invoices from your contractor or supplier. These must confirm the work has been completed and costs have been settled. Keep all receipts and documentation organized from the start.
A Completion Appraisal May Be Required
Depending on the lender and the scope of work, a completion appraisal may be ordered once renovations are finished. This confirms the improvements have been made as agreed and that the property value reflects the improved value the mortgage was based on. Appraisal costs are typically the borrower's responsibility.
Everything Is Based on the Improved Value
Your down payment, mortgage amount, and default insurance premium are all calculated on the total improved value — the purchase price plus the cost of improvements. For example, a $250,000 purchase with $10,000 in improvements means your mortgage is structured around a $260,000 value.
Good to Know
Lender requirements can vary. Some lenders cap the improvement amount, require quotes before approval, or have specific rules around the type of work eligible. Reach out and I can walk you through what applies to your situation.
Mortgage Tool
Purchase Plus Improvements Calculator
Estimate your mortgage payment including renovation costs and default insurance. All figures are estimates — contact me for an exact quote.
25-year amortization — standard default insurance premiums apply.
Your Mortgage Estimate
Default insurance premiums are based on current guidelines and apply to all three Canadian insurers (CMHC, Sagen, and Canada Guaranty). Canadian mortgages compound semi-annually. 30-year amortization carries a 0.20% surcharge on insured mortgages. At 20% down, no default insurance is required. Always verify rates and premiums with your lender.