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3 Jul

Purchase PLUS Improvements

Mortgage Tips

Posted by: Kim Lindsay

Great neighbourhood, amazing yard, love the floor plan …

You’ve found the PERFECT HOME!  Almost.

Maybe you want to update the kitchen, replace the windows, or finish the basement.

With Purchase Plus Improvements, customizing your dream home is simple and affordable.  Buy your new home and include the renovation costs in the mortgage with as little as 5% down.


  • Immediately increase your home’s property value
  • Include the renovation costs at a great interest rate
  • Complete the upgrades right away and live in the home you really want!



  • New flooring
  • Fresh paint
  • Updated kitchen
  • New siding, eaves or facia
  • Finish the basement
  • Build a new garage
  • New roof
  • Updated bathroom
  • New windows
  • New doors
  • More efficient furnace or central air system



STEP 1:  Once you find a house that you like, we get you an approval based on the accepted purchase price. From there, you’ll need to get quotes from licensed contractors for the renovations/improvements. Some lenders will allow you to do the work yourselves; quotes will be for materials only.

STEP 2:  We will then have your mortgage approval revised to include the cost of the renovations.   Add the amount of the quotes to the purchase price and this becomes the new “value” of the home; your down payment is now based on this amount.


STEP 3:  Take possession of your new home. On your possession date, the lender advances all money (including cash for improvements) to your lawyer; seller gets their portion for sale price, the additional funds for improvements are held in trust until all work is completed.

STEP 4:  Get started on your renovations; most lenders require the renovations/improvements to be completed within 120 days after taking possession.  After all the work has been completed, we order an inspection report from an appraiser to confirm.

STEP 5:  Lender instructs your lawyer to release the funds to you.


VOILA!  The renovation costs are built into your mortgage at a low interest rate, you’ve increased the value of your property, and you have the beautiful home you’ve dreamed of.


Contact me for more details!