Found the right location but not the perfect house?
A Purchase Plus Improvements mortgage allows you to buy a home that needs updates and roll eligible renovation costs into your mortgage. Instead of taking out a separate renovation loan, you'll have one mortgage, one payment, and the opportunity to turn a house with potential into the home you really want.
What Renovations Can Generally Be Included?
- Kitchen renovations
- Bathroom updates
- Flooring
- Windows and doors
- Roofing
- Painting
- Basements - completion or legal suite addition
- Energy-efficiency upgrades
- Major systems like furnace, hot water tanks, electrical etc
Eligible renovations vary by lender and mortgage insurer, so we'll review your plans before making recommendations as there are a few things that they do not like/allow to be added.
Here's what you can expect throughout the Purchase Plus Improvements process:
Step 1: Find the Right Property
Once you've found a home you'd like to purchase, we'll review your renovation plans and estimate how much you may be able to include in your Purchase Plus Improvements mortgage. This helps you understand your budget before moving forward.
Step 2: Gather Contractor Quotes
Obtain detailed written quotes for the renovations you'd like to complete. These quotes are required by the lender as part of your mortgage approval and help determine the final renovation amount that can be added to your mortgage.
Step 3: Finalize Your Mortgage Approval
We'll submit your mortgage application, renovation plans, and contractor quotes to the lender. We'll also review your final down payment requirements, as adding renovation costs increases the overall purchase price and may affect the amount of down payment required.
Step 4: Complete Your Purchase
Once your purchase closes, you'll take possession of your new home while the renovation funds are held back by your lawyer until the approved work has been completed.
Don't have cash available for the renovations? That's okay. Many homeowners use a line of credit or other temporary financing, with the expectation that those funds will be repaid once the renovation holdback is released.
Step 5: Complete the Renovations
Complete the approved renovations within the lender's required timeframe. Once finished, you'll typically provide paid invoices and arrange for a final inspection by an appraiser to verify the renovations were completed as approved. Most final inspection reports cost approximately $200, although fees can vary depending on the property, location and appraiser.
Step 6: Receive Your Renovation Funds
After the lender receives the final inspection report and confirms the required documentation, they'll instruct your lawyer to release the renovation holdback funds. This process typically takes 1–2 weeks after the inspection report is completed, depending on how quickly the appraiser, lender, and legal professionals complete their portions of the process.
FAQ - Because There are always lots of Questions with this program =)
Do I receive the renovation money at closing?
No. The renovation funds are typically held back by your lawyer and released after the work is completed and verified by the lender. This can be in the form of a report we have to order to your behalf or paid receipts from the contractors. Lenders cannot give you money upfront to add value and hope you do that. They need to see the value has been added to the home in order to reimburse you for those costs.
Do I need contractor quotes?
Yes. Detailed written quotes outlining the scope and cost of the renovations are required before final mortgage approval.
Can I complete some of the work myself?
Sometimes. This depends on the lender and mortgage insurer. We'll review your renovation plans before submitting your application.
Will my mortgage rate be higher?
Not because you're using this program. Your mortgage rate is based on the mortgage product you qualify for, not simply because you're financing renovations.
How long do I have to complete the renovations?
Most lenders require renovations to be completed within a specified timeframe after possession. Generally that number is 120 days but some lenders have some flexibility on it so we'll explain those timelines before you commit.
Can I change the scope of work after it is approved by the lender?
No, unfortunately not. The lenders, once approved, have done their assessment to confirm if they agree that the cost of the renovations will add that much value into the home. Changing the scope of work or deciding not to do something changes the perceived value that was assessed and approved. This one is very important to know upfront when getting quotes.
What if I do not complete the work in time or decide not to do all of the work that was in the quote?
If, for some reason, an extension is needed we absolutely will do our best to accommodate that as long as it makes sense. Most lenders are very reasonable but this is something we will discuss in more detail when planning with you. If a portion of the renovation does not get completed any funds not used, or work quoted not completed is generally just put back onto the mortgage balance. It is not given to you nor kept by the lender but cannot be released if the value has not been added.
Is a Purchase Plus Improvements mortgage right for me?
Sometimes the "perfect" house isn't the one that's move-in ready—it's the one with the best location, solid structure, and room to build equity through thoughtful renovations.
One of the things I help clients evaluate is whether the renovation budget makes financial sense. The goal isn't simply to buy a house that needs work; it's to buy a property where the improvements add value and still fit comfortably within your overall budget.
No judgment. No pressure. Just honest advice and a plan that fits your situation.
