Purchase plus Improvements

Does the new home you are purchasing require upgrades or renovations?

A new roof, central air, a new furnace, upgrades to the electrical or plumbing system, new doors, windows, a new kitchen, a new bathroom, or any other renovation that increases the value of the home?
You can add the cost of these renovations to your mortgage by using the purchase plus improvements product.

This is how it works.
At the time that you're submitting your mortgage application for approval, you provide a written quote from a licensed contractor detailing the improvements with estimated costs.
Your application is submitted and approved for a mortgage in the amount of the purchase price plus the improvements.

The lender will instruct your solicitor to hold back the amount of the renovation work.
Once the work has been confirmed completed by an appraiser, the lender will instruct the solicitor to release the holdback to you to pay your contractor.

Here's an example to illustrate how this works;
You have found a home to purchase for $150,000, you have a 5% down payment, and would like to add $25,000 worth of improvements.
Purchase price of home = $150,000.
Contractual estimate of improvements = $25,000.
Lender & Insurer agree that improvements will increase value of the home to $175,000.
Total mortgage = $175,000 X 95% = $166,250. plus applicable insurer premium.

Your lawyer will register your mortgage for this amount, but be instructed to hold back $25,000.
Your contractor completes the improvements within 90 days.
Am appraiser confirms completion and your lawyer is instructed to release the $25,000 hold back to you so that you can pay your contractor.

Everyone is a winner!
The purchaser is happy because they got $25,000 of improvements done to the home, with payments spread out over the amortization of the mortgage.
The lender is happy because they now have a mortgage on an improved home.


It's very easy to start the process - you have the choice of:

  • Calling us at (519) 433-5013
  • Send us a message via our contact form
  • Completing our secure on line application - apply here.

Be Mortgage Wise……Call The Mortgage Guys!