Looking for a home but nothing quite meets your needs or expectations?

look no further – there is a great mortgage product that allows you to buy a home and roll in the cost of improvements (into the new mortgage)  This is a great way to open up your search to homes that may need a little TLC but are in a great location and or have great bones.

The opportunities are endless.

Add Value

Now – this is a great product to update and add value – its not a product for a total gut job, as the work you do has to be done within 90-180 days (depending on the lender) 

When you buy a home people may have plans to do work – but getting it done right away will not only add value instantly but will add to your enjoyment which is most important

What is a Purchase Plus Improvements mortgage?

This program allows you to borrow the cost of renovations (anywhere from 10 to 20% of the purchase price) and add it to the home price, rolling it all into one mortgage payment at the best rates

Once you take possession of your new home, you can start the upgrades immediately. This does come with a few requirements prior to closing of course – like providing a full detailed quote of all the work you will be doing – and the lender may want a before and after appraisal to confirm all the work is complete and it will add at least that amount of value to the home. 

How does this mortgage work?

  • if buying with less than 20% down (you can add up to 10% of the value of the home) 
  • if buying with 20% or more down you can add up to 20% of the value of the home 
  • Amortization for up to 30 years (depending on the loan to value) 

What properties are eligible?

  • Maximum 4 units, with at least one unit owner occupied 
  • primary residence, second home or rentals 
  • New construction or existing properties

How it works, and how we help you every step of the way: 

Step 1: Do a thorough pre approval with a Broker from Mortgages.ca so you know exactly what is possible 

Step 2: Once you found your dream home – make an offer – but keep in mind the total pre-approval and possible renos to be done (a rough estimate on costs) 

Step 3: send the MLS listing and purchase agreement to your Pro at Mortgages.ca – we will get the mortgage approved.

Step 4: Provide your broker with a detailed quote for all work to be done – and the associated costs.

Step 5: We then get the quotes approved and added to your mortgage.

Step 6: We order an appraisal to confirm the work to be done will add at least that amount of value or more to the home. 

Step 7: The mortgage is re-approved adding the renos.

Step 8: You take possession of the home and you have anywhere from 90 to 180 days to get the work done…you have to pay for this yourself up front. (savings, credit cards, line of credit or gift) *Please note – you must pay for the work yourself upfront.  You can use your own funds, credit cards, lines of credit etc. 

Step 9: Once the work is complete – or almost complete let your Mortgage pro know so we can order the final inspection (from the same appraiser) – simply to confirm all the work from the quotes has been completed 

Step 10: The appraiser provides a detailed report to the lender – and they release those funds back to you (paying yourself back) – and the total reno costs are rolled into the new mortgage.

A little example: 

$800,000 purchase price + $80,000 in renos (new floors, paint job, new bathroom and new AC/furnace) 

new purchase price is changed to $880,000 – $88,000 (10% down) = $792,000 + $24,552 (high ratio insurance) = $816,552 total mortgage 


 $800,000 purchase price = $160,000 (20% in renos)

Total purchase price is changed to $960,000 – $192,000 (20% down) = $768,000 total new mortgage 

So you can see in example #2 you get $160,000 in reno value added for just an extra $32,000 more down payment for that same house….and you only pay the closing costs based on the $800k purchase price (saving to your land transfer tax) 


  • The renos must be adding value to the home (this does not include things like furniture or appliances) 
  • Best rates are possible with most lenders for this product as well – which is a bonus! 

References: – High ratio mortgage https://www.sagen.ca/products-and-services/purchase-plus-improvements/#