Purchase Plus Improvements Mortgage in Canada: Buy and Renovate with One Loan

Turn a Good Home into Your Dream Home — Right Away

Found a home you like… but don’t LOVE yet?

With the Purchase Plus Improvements mortgage program, you can buy a property and finance renovations at the same time, combining everything into one mortgage. This allows you to upgrade your home immediately instead of waiting years to afford improvements.

By using the property’s “as-improved” value, lenders may approve additional funds to cover eligible renovation costs — helping you build equity faster.

Learn more about renovation financing options here: Renovation Loans Canada

Buy smart. Renovate early. Build equity sooner.

What is the Purchase Plus Improvements Program?

The Purchase Plus Improvements mortgage allows homebuyers to include renovation costs directly into their mortgage when purchasing a home.

Instead of: • Buying a home
• Saving money for renovations later
• Applying for a second loan

You can finance both the purchase and upgrades together.

This option is especially useful if:

The property needs cosmetic updates
You want to customize the home immediately
You want to increase property value quickly
You want to avoid high-interest renovation loans later

How It Works

Purchase a home that may need improvements
Provide quotes for planned renovations
Lender approves mortgage based on the improved property value
Complete renovations within 120 days of possession
Funds are released according to the program structure

This allows you to move into a home that better fits your needs right from the beginning.

Eligible Renovations

Most cosmetic upgrades are eligible under this program.

Interior Upgrades

Kitchen renovations
Bathroom improvements
Flooring replacement
Interior painting
Lighting upgrades

Functional Improvements

Window replacements
Basement finishing
Detached garage construction
Energy efficiency improvements

These upgrades can significantly improve both comfort and resale value.

Loan-to-Value (LTV) Limits

Loan approval depends on whether the mortgage is insured or uninsured.

Loan Type	Property Units	Maximum LTV
Uninsured Mortgage	1–2 units	80% LTV
Insured Mortgage	1–2 units	95% LTV
Insured Mortgage	3–4 units	90% LTV

The total financing amount is based on the lower of the improved value or renovation cost.

Important Program Guidelines

120-Day Completion Requirement

All approved renovations must typically be completed within 120 days of possession.

Maximum of Two Advances

Funds may be released in stages, usually limited to two advances, including the initial property purchase.

Improvement Limits

Renovation costs are typically capped at 20% of the property’s as-is value (for insured mortgages).

Exclusions

The program usually does NOT cover:

Major structural changes
Extensive additions
Projects that make the home unlivable during renovation

Benefits of Purchase Plus Improvements

Increase Property Value Faster

Upgrading the property early can increase equity more quickly than waiting years to renovate.

Lower Interest Compared to Personal Loans

Mortgage rates are generally much lower than credit cards or unsecured loans.

Customize Your Home Immediately

You can move into a home designed to fit your lifestyle.

Ideal for First-Time Buyers

This program helps buyers enter competitive markets by considering properties that need light improvements.

Example Scenario

A buyer purchases a home for $700,000 that needs $40,000 in renovations.

Using Purchase Plus Improvements:

Mortgage may be based on the improved value
Renovation costs are included in the mortgage
Improvements are completed within 120 days
The home becomes more valuable immediately

Contact Sia Ghaem for Expert Mortgage Guidance

+1 604-354-3800

Ready to Explore Your Options?

If you’re considering buying a home that needs improvements, this program could help you unlock hidden potential and increase property value faster.