What Is a Purchase Plus Improvement Mortgage?
A Purchase Plus Improvement Mortgage allows you to finance both the cost of buying a home and the cost of renovations with a single mortgage. It’s an excellent option for buyers who see the potential in a property that needs a little work.
- One mortgage with renovation costs included
- Ideal for fixer-uppers or homes needing upgrades
- Funds for renovations are released after the work is completed and inspected
- Popular with buyers looking for affordability and customizability
This mortgage, including home improvement, gives you the power to turn a good house into your perfect home, without needing multiple loans or credit lines.
Why Choose This Option?
A purchase renovation mortgage makes the most of your investment from day one.
- Upgrade your home right after purchase, no delays
- Avoid the need for separate renovation financing
- Increase the value of your home immediately
- Keep your payments manageable with a single mortgage
It’s a practical and popular option for Canadians looking to buy and renovate a home on a budget.
Who It’s Best For
This type of mortgage is ideal for:
- First-time home buyers who find a great home that needs some TLC
- Investors or house flippers looking to increase property value
- Buyers seeking homes in older, established neighbourhoods
- Anyone interested in a mortgage for a fixer-upper in Canada
If you’re someone who sees potential where others see problems, a first-time home buyer renovation mortgage could be the perfect fit.
How It Works
Getting a purchase plus improvements mortgage is easier than you think. Here’s how:
- Get quotes for your planned renovations before you apply
- Get approved for a mortgage that includes the purchase price and renovation budget
- Complete the renovations after your mortgage closes
- Funds for improvements are released once the work is finished and inspected
Our team will guide you through every step to make sure your project stays on track and within budget.
Frequently Asked Questions
- What types of renovations are eligible?
Generally, improvements that add value to the property—such as kitchens, bathrooms, flooring, roofing, or windows—are allowed. Cosmetic upgrades may also qualify. - Can I do the renovations myself?
Most lenders require a qualified contractor to complete the work. Some may allow self-managed projects with approval and proper documentation. - How are improvement funds released?
Funds are advanced after the renovations are completed and inspected, based on the original quotes provided. - Do I need a contractor quote before applying?
Yes. Lenders typically require a detailed quote upfront to include the renovation budget in your mortgage approval.
