Purchase Plus Improvements: Buy It and Make It Yours
Finance your home and your renovations in one mortgage. (Kristi's favourite!)
The quick version
Buy a home and add renovation costs to the same mortgage.
Your down payment is based on the purchase price plus renovations.
Renovation funds are held back until the work is done and inspected.
You will need to cover the renovation costs up front in the meantime.
Work usually needs to be finished within about 90 to 120 days.
Found a home that is almost perfect? Book a call and let us see if Purchase Plus Improvements is the right fit.
What is it?
A Purchase Plus Improvements mortgage lets you finance your home purchase and your renovations together, in one mortgage, at mortgage interest rates. Orange shag carpet and purple walls are not your thing? No problem.
How it works, step by step
Step 1: Get pre-approved
Know your budget for both the purchase and the renovations before you shop.
Step 2: Find your home
House hunt with your realtor, with an eye for what could be.
Step 3: Get your offer accepted
Negotiate an accepted offer. Make sure you have enough time in your financing condition to collect your quotes.
Step 4: Get renovation quotes
Have a contractor give you written quotes for the work. Doing it yourself? Get quotes for the materials. Stores like Home Depot and Rona can help with material quotes.
Step 5: Get final approval
Your lender reviews your documents, quotes and appraisal (which includes the home's value after the improvements).
Step 6: Possession day
The lender releases the funds for the purchase. The renovation funds are held back with your lawyer.
Step 7: Do the work
You pay for the renovations up front, using your own savings, a line of credit or a credit card.
Step 8: Inspection
When the work is finished, an appraiser inspects it to confirm it matches the plan. There is usually a small fee for this.
Step 9: Get reimbursed
Once the inspection is approved, the held-back funds are released to you through your lawyer.
Key details to know
Down payment: based on the total project cost (purchase price plus renovations).
Timeline: most lenders expect the work to be done within 90 to 120 days.
Eligible improvements: generally permanent improvements that add value, such as kitchens, bathrooms, flooring, windows, roofs or finishing a basement. Items like appliances, furniture and landscaping usually are not eligible.
Doing it yourself? Only materials are covered. Your own labour is not reimbursed.
Limits: lenders and insurers cap how much you can add for renovations. I will confirm the limit for your purchase.
Plan for the in-between
This is the part people most often miss. Because the renovation money is released after the work is done, you need a way to pay your contractor or buy materials first. We will plan for this together before you write an offer.
Is it right for you?
It is a great fit if you are looking at a home that needs some TLC. You can:
Make the home yours from day one
Build equity right away by adding value
Avoid carrying renovation costs on a higher-interest line of credit or credit card
Open up more homes to choose from, often at a better price
Let us make your dream home a reality
If you have found a home that is almost perfect, this could be the solution. Book a call or reach me at (306) 227-7051 and let us talk about how Purchase Plus Improvements can work for you.
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