Renovate as You Buy: Understanding Purchase Plus Improvements Mortgages

Have you ever walked into a home and thought, “The bones are great, but that wallpaper has got to go”? With a Purchase Plus Improvements mortgage, you don’t have to let outdated finishes stop you from buying the perfect property. This program lets qualified buyers add approved renovation costs—like new flooring, modern cabinets or a bathroom overhaul—onto their mortgage. Instead of juggling multiple loans or maxing out your credit card, you finance the upgrades at mortgage rates, which are usually much lower than credit‑card rates.

Here’s how it works: before closing, you collect quotes for the work you’d like to do. The lender includes the renovation budget in your mortgage amount, and once the work is complete and inspected, they release funds directly to you or the contractor. Most lenders allow improvements up to a percentage of the home’s post‑renovation value (often 10%–20%). The catch? You typically need to complete the renovations within a set time (usually 90–120 days) and pay up front, then get reimbursed. It’s key to plan carefully and work with licensed contractors to avoid delays.

This type of mortgage is ideal if you want to build equity quickly. By investing in improvements that increase your home’s value, you may end up with a more valuable property from day one. It’s also a great way for first‑time buyers to afford homes in established neighbourhoods where fully updated properties are out of reach. Need help figuring out if you qualify or how to start the process? That’s where a mortgage agent comes in—your deals desk can help ensure all documentation is submitted correctly and the numbers make sense.

Ready to talk mortgages on your terms?

Whether you’re crunching numbers late at night or just day‑dreaming about your next home, I’m here for you. Call or text me at 519‑575‑1804, or send an email to cferguson@dominionlending.ca.

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