Improvement Quotes
Understand the role of improvement quotes in Canadian real estate financing, how they affect renovation loans, and why accurate estimates are essential.
May 22, 2025
What are Improvement Quotes?
Improvement quotes are written estimates detailing the cost of planned renovations or upgrades to a property, typically required during mortgage applications or renovation planning.
Why Improvement Quotes Matter in Real Estate
In Canadian real estate, lenders often require improvement quotes when buyers apply for a Purchase Plus Improvements Mortgage or renovation loan. These quotes help verify the scope, budget, and feasibility of proposed upgrades.
Key details in an improvement quote include:- Itemized list of materials and labour
- Contractor contact information and credentials
- Estimated start and completion dates
- Total projected cost including taxes
Lenders use quotes to determine the additional funds to include in a mortgage. Funds are usually released after work is completed and verified. Buyers should obtain quotes from licensed and insured professionals to ensure lender acceptance.
Quotes also aid in comparing contractor bids and help property owners budget accurately for improvements. Having reliable improvement quotes supports both financing and project planning.
Example of Improvement Quotes
A buyer submits two improvement quotes totaling $30,000 for a new roof and energy-efficient windows, securing additional financing under a Purchase Plus Improvements Mortgage.
Key Takeaways
- Provide cost breakdown for property upgrades.
- Required for renovation financing approval.
- Must be detailed and contractor-issued.
- Help with budgeting and project planning.
- Funds released after verified completion.
Related Terms
- Purchase Plus Improvements Mortgage
- Home Renovation Loan
- Contractor Estimate
- Refinance
- Home Appraisal
6525 Mississauga Road and its surrounding context. (RBC Capital Markets & CBRE)
Property details for 6525 Mississauga Road. (RBC Capital Markets & CBRE)
National average resale-price growth and housing-starts growth, smoothed over three months. The comparison illustrates the cycle; it does not establish how much a price change causes construction to change.
Trailing 12-month starts in centres of 50,000 or more remove the usual monthly seasonality. Ownership combines the homeowner and condominium categories; rental is shown separately.
Six-month averages of provincial starts, expressed at annual rates. The smoothing reduces the influence of individual apartment projects.
The same August benchmark compared with two different starting points. Three-month changes are not annualized.
Average sale prices show the difference in purchase costs across markets. They do not measure affordability relative to local incomes or construction costs.
Newfoundland and Labrador remains above its pre-pandemic sales pattern, but August activity was below last year. Historical lines retain their original release vintages.
Average and median describe different aspects of the same month’s transactions. Both are affected by the mix of homes sold.
Category averages compare different homes and locations; the gaps are not estimates of the cost to upgrade an otherwise identical property.
The five categories shown account for 5,000 of the board’s 5,057 sales. The remaining 57 transactions were in other housing categories.
Monthly observations are not seasonally adjusted. Active listings count properties available at month-end; they are not construction inventory.
Average and median prices share one dollar axis. These unadjusted transaction measures do not control for changes in the homes sold.
TRREB’s 416/905 categories compare the apartments sold in each area. The difference does not isolate a location premium for equivalent units.
5680 Oak Street in Vancouver and its surrounding context. (MCMP Architects)
Ground-level renderings of the tower proposed for 5680 Oak Street in Vancouver. (MCMP Architects)