Buy your dream home and finance the renovations all in one mortgage. Learn how to roll improvement costs into your purchase and create the perfect home from day one.
in renovations with your purchase
A Purchase Plus Improvement mortgage allows you to borrow money for both the purchase price of your home AND the cost of renovations - all in one single mortgage. This means you can buy a fixer-upper and make it your dream home without needing a separate renovation loan.
No need for separate renovation loans or lines of credit. Everything is combined into one simple monthly payment.
Mortgage rates are much lower than credit cards or unsecured renovation loans, saving you thousands in interest.
You can still qualify with as little as 5% down on the total amount (purchase + renovations).
Buy below market value and add instant equity by renovating - pay less upfront and own more later.
Finance up to $40,000 in eligible renovations through most major lenders in Canada.
Use funds for kitchens, bathrooms, flooring, roofing, HVAC, windows, and more - any improvement that adds value.
Here's how to get your Purchase Plus Improvement mortgage approved
Contact me to get pre-approved for your Purchase Plus Improvement mortgage. I'll determine your maximum budget including both the purchase price and renovation costs.
Work with your real estate agent to find a home that needs improvements. Look for properties priced below market value that you can renovate to add value and equity.
Obtain detailed written quotes from licensed contractors for all planned renovations. These quotes must be itemized and include labor and materials. The lender will review and approve them.
The lender orders two appraisals: one "as-is" (current condition) and one "as-improved" (after renovations). The lender approves your mortgage based on the improved value.
At closing, you receive the purchase funds plus the renovation money is held in a separate account by the lender. The renovation funds are released to you (or directly to contractors) as work is completed.
Complete your renovations within the agreed timeline (typically 90-120 days). Submit invoices and proof of completed work to the lender to receive your renovation funds in stages.
What improvements can you finance with this mortgage?
Note: Improvements must add value to the property and be completed by licensed, insured contractors.
What you need to qualify for Purchase Plus Improvement
Minimum 5% down payment on the total amount (purchase price + renovations). For properties over $500,000, 5% on the first $500K and 10% on the remainder.
Example: $400K home + $30K renovations = $430K total. You need $21,500 down (5%).
Minimum credit score of 600 for insured mortgages (under $1M with less than 20% down). Higher scores may qualify for better rates.
Stable employment or self-employment income that can support the total mortgage payment (including property taxes and insurance). Most lenders prefer 2+ years of employment history.
Most lenders allow up to $40,000 in renovations. Some lenders may allow more depending on the property value and scope of work.
The renovation amount cannot exceed the increase in property value after improvements.
All work must be completed by licensed, insured contractors. You'll need detailed written quotes with itemized costs for labor and materials before closing.
Renovations must be completed within 90-120 days of closing (timeline varies by lender). Extensions may be available in some cases.
Failure to complete on time may result in penalties or requirement to repay renovation funds.
Purchase Plus Improvement mortgages are only available for properties you plan to live in as your primary residence. Investment properties and vacation homes do not qualify.
Common questions about Purchase Plus Improvement mortgages
Let's discuss your Purchase Plus Improvement options and get you pre-approved. I'll help you understand your budget, find the right property, and coordinate your renovation financing.