Purchase Plus Improvements Mortgage

Learn how a Purchase Plus Improvements Mortgage helps Canadian buyers finance both the cost of a home and needed renovations in a single mortgage.

Purchase Plus Improvements Mortgage

May 22, 2025


What is a Purchase Plus Improvements Mortgage?

A Purchase Plus Improvements Mortgage is a mortgage product that allows homebuyers to finance the cost of renovations or upgrades along with their home purchase.

Why Do Purchase Plus Improvement Mortgages Matter in Real Estate

This type of mortgage is particularly valuable for buyers who purchase a home that needs immediate updates—such as a new roof, flooring, or kitchen renovation—but may not have upfront cash available for improvements.


How it works:
  • The buyer gets pre-approved for a total mortgage amount that includes the home's purchase price and the estimated cost of improvements.
  • After closing, the renovation funds are held in trust.
  • The buyer must complete the improvements within a specific timeframe (usually 90–120 days).
  • Once the renovations are verified (with invoices or inspections), the lender releases the funds.

Eligibility requirements typically include:
  • Renovations must increase the home's value or functionality
  • Quotes or plans must be submitted in advance
  • Final mortgage approval is conditional on the scope and completion of the work


Understanding this mortgage option gives buyers more flexibility and purchasing power, especially in markets where move-in-ready homes are out of budget.

Example of a Purchase Plus Improvements Mortgage in Action

A couple buys a $500,000 home and adds $40,000 in approved renovations. Their total mortgage is $540,000 under a Purchase Plus Improvements program.

Key Takeaways

  • Combines home purchase and renovation costs.
  • Funds released after upgrades are completed.
  • Requires quotes and lender approval.
  • Useful for buying homes that need work.
  • Helps buyers afford both purchase and repairs.

Related Terms

Additional Terms

Construction Loan

A construction loan is a short-term, interim financing option used to fund the building or major renovation of a property, with funds disbursed in. more

Certificate of Occupancy

A certificate of occupancy is an official document issued by a municipal authority confirming that a building complies with applicable codes and is. more

Bylaw Variance

A bylaw variance is official permission granted by a municipal authority allowing a property owner to deviate from local zoning or building bylaw. more

Absorption Rate

Absorption rate is a metric that measures the rate at which available properties are sold or leased in a specific market over a given period.. more

Corporate Restructuring

Corporate restructuring refers to the reorganization of a company’s operations, assets, or liabilities, often under court supervision, to improve. more

Consumer Proposal

A consumer proposal is a formal, legally binding agreement in Canada between an individual and their creditors to repay a portion of their debt over. more

More For You

Op-Ed: Development Flippers Aren't Breaking The Market — Policy Is

A "Regulations" tower looming over a sign that says "Flippers Not Welcome"

Goodman Commercial

This article was written and submitted by Mark Goodman, Ian Brackett, and Megan Johal, brokers at Goodman Commercial and authors of the Goodman Report.

The outrage machine is noisy these days with denunciations of supposedly nefarious "middlemen" who assemble properties and take them through rezoning — not because they plan to build something, but rather in hopes of flipping the land for an immediate payday.

Keep ReadingShow less

Contemporary Charm Meets Skyline Views At This Roncy Condo

Contemporary Charm Meets Skyline Views At This Roncy Condo

If you’ve ever wished you could live among the trees without giving up the skyline — or be steps from a farmer’s market and still catch the CN Tower from your terrace — this Roncesvalles condo might just check all your boxes.

Tucked into a mid-rise building just off Roncesvalles Avenue, Suite 618 at 38 Howard Park Avenue delivers the kind of lifestyle balance you don’t often see in Toronto condos.

Keep ReadingShow less

This Lakeside Haliburton Hideaway Epitomizes Serenity

This Lakeside Haliburton Hideaway Epitomizes Serenity
shorelinemediaco.com

A true rarity on Boshkung Lake, a newly listed Haliburton Highlands estate is the kind of property that surfaces once in a generation — if that.

Tucked away at the end of a winding lane and surrounded by more than 100 acres of forested privacy, 1141 Nu-Ne Lane presents a distinctive pairing of luxury waterfront living and premium equestrian infrastructure.

Keep ReadingShow less

Aspen Ridge Advances 39-Storey ​Proposal In Crosstown Master Plan

Aspen Ridge Advances 39-Storey ​Proposal In Crosstown Master Plan
Left: Block 6C - Right: Crosstown Community overview/CORE Architects, Aspen Ridge

Aspen Ridge has submitted plans for a 39-storey residential tower to advance the master-planned Crosstown Community at Don Mills Road and Eglinton Avenue East. The tower would be located within Block 6C — one of 17 blocks that make up the 60-acre mixed-use, transit-oriented development anchored by the Don Valley Station on the Eglinton Crosstown LRT line, which is slated to open this September.

The sprawling community, first approved in 2019, has begun to take shape in recent years with the completion of Crosstown Place, a nine-storey office building in Block 1, and the currently under-construction 39-, 34-, 32-, eight-, and three-storey One Crosstown Towers I, II, III, and The Crest in Block 12, and the 27-storey Generations Tower in Block 5A.

Keep ReadingShow less

The Crisis We Needed? Rethinking Toronto Housing In A Post-Speculation Market

The Crisis We Needed? Rethinking Toronto Housing In A Post-Speculation Market

This article was written and submitted by Richard Witt, an architect and principal at BDP Quadrangle where he tries to fill every half empty glass.

Niccolò Machiavelli famously said, “Never waste a good crisis” — a sentiment also often (though apocryphally) attributed to Winston Churchill. The core idea is the same: crises, for all their disruption, are also moments of immense opportunity. They strip away illusions, expose systemic flaws, and force us to re-evaluate long-held assumptions. And if there is any local crisis ripe for examination — and perhaps, transformation — it is the current state of the Toronto housing market.

Keep ReadingShow less

Popular St. Clair West Bakery Could Be Swapped With 18-Storey Condo

Popular St. Clair West Bakery Could Be Swapped With 18-Storey Condo
1492 St. Clair Avenue West/KFA Architects and Planners

A sleek 18-storey mixed-use tower could soon sit directly across from Earlscourt Park in Corso Italia-Davenport, replacing Caledonia Bakery and a single-storey car wash facility.

Plans were filed by numbered company, 2003801 Ontario Ltd., in late June in support of a Zoning By-law Amendment application to allow for increased height on the site. Currently, the site is zoned 'Mixed Use District' and allows for heights of around 46 feet, but the developer is seeking to convert the site to 'Commercial Residential' and increase height the allowance to 191 feet. Pending approval, a Site Plan Approval application will also need to be filed.

Keep ReadingShow less

"A Landmark In The Future": GWLRA To Finish College Park Project 100 Years Later

"A Landmark In The Future": GWLRA To Finish College Park Project 100 Years Later
Left: College Park rendering/Hariri Pontarini Architects, GWLRA. Right: Original vision for Eaton’s College Street Store/via GWLRA

Nearly one hundred years ago, Toronto was supposed to get its own version of New York's Rockefeller Center in the form of a 37-storey retail tower in the city's core, set to be fitted with the Art Deco style that dominated the architectural world of the 1920s. But when the Great Depression hindered development, architects Ross & Macdonald's vision was reduced to a seven-storey podium — until now.

On Tuesday, GWL Realty Advisors (GWLRA) revealed plans to redevelop the historic building with a three-tower mixed-use complex that would preserve the existing building and deliver a "reimagined" public realm. The 96-, 75-, and 65-storey towers, the tallest of which qualifies as a supertall, would contain 2,334 new housing units, a new hotel, and a new retail and entertainment space, making it a true “city within a block."

Keep ReadingShow less

Award-Winning Okanagan Lake Modern Listed In Kelowna

Award-Winning Okanagan Lake Modern Listed In Kelowna

Set within Kelowna’s most exclusive waterfront enclave, this architectural tour de force invites you to experience life at its most intentional.

Known as Luminescence, the home at 19-180 Sheerwater Court takes its name — and its ethos — from light itself. Rooted in the principles of Japanese modernism, this award-winning residence is perched above Okanagan Lake in Sheerwater: a private, gated community known for its expansive lots, natural topography, and exclusive marina access.

Keep ReadingShow less
Privacy PolicyAbout UsTerms of UseAdvertise with UsJobsContact UsRSS Feed
2025 © STOREYS Publishing Inc. | All Rights Reserved