Buy a Home—and Make It Yours
Finding your dream home can be tough, especially if the house that fits your budget doesn’t quite meet your standards. Maybe the kitchen is outdated, the floors are worn, or the backyard lacks charm. This is where the Purchase Plus Improvements program becomes a game-changer for homebuyers in Canada.
What Is the Purchase Plus Improvements Program?
The Purchase Plus Improvements program is a mortgage option that allows homebuyers to borrow additional funds—on top of their home purchase price—to cover eligible renovation costs. These funds are rolled into your mortgage, meaning you benefit from one convenient and affordable monthly payment.
With as little as a 5% down payment, you can purchase a home that needs work and make it your own. The best part? You don’t need a separate renovation loan or personal line of credit. It’s all under one roof, literally and financially.
Who Can Benefit?
This program is ideal for:
-
First-time homebuyers looking to personalize an affordable property.
-
Families who want to move into a great neighbourhood and improve a dated home.
-
Buyers looking to increase a home’s future value with smart renovations.
-
Investors planning to buy and upgrade a rental property (with lender approval).
If you’ve found a house in the right location but with the wrong layout or design, the purchase plus improvements program gives you the flexibility to make it work.
How the Purchase Plus Improvements Program Works
It’s easier than you think. Here’s a simple step-by-step guide:
- Find a home you love that needs a few updates.
- Get written quotes from licensed contractors for the renovations you plan to do.
- Apply for a mortgage that includes the purchase price and the renovation costs.
- Get approved by your lender for the full amount (home + improvements).
- Close the deal and move in (or wait until work is complete, depending on scope).
- Renovations are completed after closing, typically within 90 days.
- Lender inspects the work, and then releases the improvement funds.
Everything is managed in a structured, secure way to protect you and ensure the funds are used appropriately.
Advantages of Purchase Plus Improvements
-
One Affordable Payment: Bundle your mortgage and renovation costs.
-
Lower Interest Rates: Access better rates than typical renovation loans or credit cards.
-
Increased Home Value: Boost your property’s resale value and equity.
-
Custom Living Space: Move into a home that feels just right for your family.
The purchase plus improvements program gives you the power to make your home functional and beautiful from day one.
Things to Keep in Mind
While the program is flexible, there are a few important notes:
-
Renovations must be completed after closing.
-
Quotes must be provided before mortgage approval.
-
You are responsible for covering the renovation costs upfront; the lender reimburses you after verifying the work.
-
Timelines are tight—most lenders require improvements to be finished within 90 to 120 days.
Work with a mortgage professional who understands the ins and outs of this program. This ensures smooth communication between you, your contractor, and the lender.
Real-Life Example
Let’s say you find a home for $450,000, but you want to renovate the kitchen and floors—estimated cost: $25,000.
Here’s how the numbers could look:
-
Purchase Price: $450,000
-
Improvements: $25,000
-
Total Mortgage: $475,000
-
Down Payment (5%): $23,750
Instead of paying for renovations out-of-pocket or taking a high-interest loan, the purchase plus improvements program lets you include the extra $25,000 in your mortgage, with one manageable monthly payment.
Why Work With a Mortgage Professional?
Navigating mortgage options like purchase plus improvements can be overwhelming without guidance. A licensed mortgage broker can:
-
Help you find lenders who offer this program
-
Ensure your contractor quotes meet lender criteria
-
Walk you through approval, closing, and reimbursement
-
Keep the process simple and stress-free
Contac Us to find out more about of this program.
Frequently Asked Questions
❓ What is the Purchase Plus Improvements Program?
It’s a mortgage option that lets you finance home renovations as part of your mortgage. The cost of improvements is added to your loan, so you make one monthly payment covering both your home and upgrades.
❓ How much can I borrow for renovations?
The maximum amount you can finance through this program depends on several factors, including the mortgage insurer involved, the property’s value, and the lender’s specific guidelines.
You’ll need contractor quotes to verify the exact amount.
If you’re considering a Purchase Plus Improvements mortgage, it’s advisable to consult with a mortgage professional who can provide guidance tailored to your specific situation and help navigate the requirements set by different insurers and lenders.
❓ Do I need to complete renovations before I get the funds?
Yes, you must cover renovation costs upfront. Your lender will reimburse you after the work is done and inspected.
❓ Can I do the renovations myself?
Usually, no but is possible. Most lenders require licensed contractors to perform the work and provide itemized quotes.
When you want to do the renovations yourself, normally, the bank will finance the cost of materials but no the labour.
❓ Is the program available for first-time buyers?
Absolutely! The program is ideal for first-time homebuyers looking to purchase an affordable home and customize it to their liking. It is also available for refinancies and more.
Talk to us to see if your project can be financed!
❓ What types of improvements are eligible?
Common upgrades include kitchen and bathroom renovations, flooring, windows, roofing, and energy-efficient improvements. Luxury items like pools or hot tubs are typically excluded.
❓ How long do I have to complete the renovations?
Most lenders require that all renovations be completed within 90 to 120 days after the closing date.
Make Your Homeownership Dreams a Reality
If you’ve found a home that almost checks all the boxes, don’t walk away—fix it up! With the Purchase Plus Improvements program, you don’t have to settle. Instead, you can transform a house into a home with upgrades that fit your style and lifestyle—all without separate loans or extra paperwork.
Ready to Get Started?
Let’s talk! Book a free 30-minute consultation today and learn how the purchase plus improvements program can help you unlock the potential of your next home. It’s fast, simple, and you’ll be one step closer to living in a space you love.
