Mortgage Program

Purchase Plus
Improvements

Buy the home. Fund the renovations. Do it all in one mortgage — based on the home's after-improved value, not what it looks like today.

1
Application
1
Mortgage
$0
Reno Line of Credit
After
Improved Value
Book a Strategy Call
One Closing — No Separate Construction Loan
Insured & Conventional — Both Available
Quotes Required — Before Condition Removal
What Is It
The Basics of
Purchase Plus Improvements

Purchase Plus Improvements lets you roll planned renovation costs directly into your mortgage. Instead of using a line of credit or draining your savings after closing, the renovation amount is built into the mortgage from the start — based on what the home will be worth once the work is done.

Built Into One Mortgage

No second loan. No construction financing. The purchase price and improvement costs are combined into a single mortgage with one rate, one payment, and one approval process.

Based on Improved Value

Your mortgage is structured around the home's after-improved value — not just what you paid for it. This means you can borrow more, based on what the property will be worth once renovations are complete.

You Front the Cost

Renovation funds are not released at closing. You pay your contractor when the work is done and submit proof of paid invoices. The lender then releases the improvement portion to reimburse you.

Quotes Before Approval

You'll need firm contractor quotes before your condition removal deadline. These must be submitted as part of your mortgage file — I'll coordinate the timing with your realtor to make sure nothing is missed.

Step by Step
How It Works

Four things happen in a specific order — here's exactly what to expect.

01
Get Contractor Quotes

Before your condition removal deadline, you need written quotes from licensed contractors outlining the scope of work and costs. These are submitted as part of your mortgage file. No quotes, no PPI — so timing matters.

02
Approved on Improved Value

The lender approves your mortgage based on the total improved value. An appraisal confirms what the home will be worth once work is complete. Your down payment percentage is calculated on this combined number.

03
Close & Begin Renovations

You take possession and begin the work. The improvement portion of your mortgage is held back — not released at closing. You pay your contractors directly as work is completed.

04
Submit Invoices & Get Reimbursed

Once renovations are done, submit proof of paid invoices. The lender may order a completion appraisal to verify the work. Once confirmed, the holdback funds are released to reimburse you.

Good to Know
Lender requirements vary. Some cap the improvement amount, require specific types of work, or have rules around who can perform the renovations. Reach out and I'll walk you through what applies to your specific file and lender.
Program Details
At a Glance

Key details to know before you apply.

Max Improvement
$40K–$80K
Varies by lender. Most cap at $40,000 for insured mortgages; some conventional lenders allow more.
Down Payment
5%+
Calculated on the total improved value — purchase price plus renovation costs combined.
Appraisal
Required
An as-improved appraisal is required before approval. A completion appraisal may also be required after.
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.

$100K$1.5M
$0$200K
1%10%

25-year amortization — standard default insurance premiums apply.

Purchase Price—
Improvements—
Total Improved Value—
Down Payment—
Base Mortgage—
Default Insurance Premium—
Total Insured Mortgage—
Total Interest Paid—
Monthly Payment—

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.

Is This You?
Who Purchase Plus
Improvements Is For

This program works best when you've found a home that needs work and you'd rather not drain your savings or carry a separate line of credit after closing.

The Fixer-Upper Buyer

You've found a great home at a good price but it needs updating. PPI lets you finance the renovation as part of the purchase — no separate loan, no tapping your savings after closing.

The Strategic Buyer

You want to buy in a neighbourhood you love but can't afford move-in ready. PPI lets you buy the entry point and improve it into the home you want — at one blended rate.

The Practical Buyer

You'd rather not carry a high-interest home equity line or personal loan. PPI rolls the renovation costs into your mortgage at your mortgage rate — often much lower than alternative financing.

First-Time Buyers

You're buying your first home and it needs work. PPI is available on insured mortgages with as little as 5% down — calculated on the improved value, not just the purchase price.

Not Sure If It Applies?

Reach out and I'll walk you through whether PPI makes sense for your specific purchase — lender requirements vary and I'll match you to the right fit.
Ready to Talk
Through Your Purchase?

Book a free 30-minute call and I'll walk you through whether Purchase Plus Improvements is the right fit for your situation.

Book a Strategy Call Start Your Application
Information provided is for general guidance only and is subject to change. Program eligibility, lender requirements, and improvement caps vary. Always verify details with your mortgage professional.
Associate #509140 · Brokerage #315872 · TMG The Mortgage Group · 306-351-2024 · info@jennahall.ca