Purchase Plus Improvements


A program where you can add money to the mortgage for renovations at the time of purchaser. 


You would need to provide completed estimates before the application can be submitted to the lender. These estimates are added to the agreed purchase price and are submitted as one also referred to as the improved value. Borrowers can pay as little as 5% down payment on the improved value.

Purchase Price:                  $285,000
Estimates:                           + $15,000

Improved Value:                $300,000

REALTOR NOTE: Please make sure extra time is added to the financing condition date so there is time to attain estimates.



Lenders may have slightly different guidelines but the 2 insurer programs are:

  1. Max 10% of the “improved” value. Or;

  2. 20% of the “improved” value up to $40,000

NOTE: The improved value still needs to appraise out/be an insurer approved value.   


  1. Lenders only reimburse money for work completed, meaning you will need to pay for the work upfront. The lender verifies work completed via the receipts and an appraiser will also do a property inspection. 

  2. You start paying for the total mortgage amount on the date of possession. The “improvement” money is given to the lawyer who holds it in trust until the work being completed is confirmed.

  3. You may incur an appraisal cost at the beginning (unless insurer can approve value as is) and then also the cost for an appraiser to go back and confirm the work is completed. Approx $350 if need both appraisal and inspection.