‘Purchase Plus Improvements’ Mortgage

Buy It. Fix It. Love It. All With One Smart Mortgage.

Found the right house — but it needs a little work? Whether it’s a tired kitchen, outdated flooring, or a whole-home overhaul, a Purchase Plus Improvements mortgage lets you buy the home you want and roll renovation costs into the same mortgage
— all under one affordable payment plan.

At Better Mortgages, we make this process simple, strategic, and stress-free — so you can turn a “good bones” property into your dream home without draining your savings.

What Is a Purchase Plus Improvements Mortgage?

This type of mortgage allows you to finance your home purchase plus the cost of eligible renovations into a single mortgage product.

Instead of taking out a high-interest personal loan or line of credit after you move in, you get approved upfront for the home purchase and the improvement costs. That means one approval, one payment, and a smoother path from offer to upgrade.

What Can It Cover?

You can use Purchase Plus Improvements financing for:

  • Kitchens & bathrooms
  • Flooring, windows, or roofing
  • Energy-efficient upgrades
  • Basement finishing
  • Accessibility modifications
  • Painting, drywall, and cosmetic upgrades
  • New appliances, HVAC, or insulation (if built into reno quote)

This mortgage does not cover landscaping, pools, decks, or detached structures — it’s meant for improvements that increase the value or livability of the home.

Key Features at a Glance Who This Is Ideal For
Finance up to 95% Loan-to-Value (LTV) for purchases First-time buyers who want an affordable home with upgrade potential
Finance up to 80% LTV for refinances Homeowners purchasing a dated property in a desirable neighborhood
Available for owner-occupied homes (up to 4 units) Buyers who want to build equity through renovations
Competitive mortgage rates — same as standard purchases Clients who don’t want multiple loans or interest-heavy credit lines
Amortizations up to 30 years (depending on lender Anyone buying a home that’s “almost perfect” — but not quite move-in ready
Funds for renovations released after work is completed and inspected

How the Process Works — Step by Step

Once you’ve found a property, walk through it with a contractor or inspector. Determine what needs to be updated — and estimate the cost.

You’ll need firm, written quotes from licensed contractors outlining the scope of work and cost. This is critical — your mortgage lender will require it.

We submit your mortgage application with both the purchase price and the renovation cost. The lender approves the total amount, but the renovation funds are held in trust until work is complete.

Once the sale closes, the home is yours — and your contractor can begin work immediately.

Once the improvements are complete, a lender-appointed inspector will confirm the work matches the submitted quotes.

Your lawyer receives instructions to release the renovation funds, and the contractor gets paid.

You now have a customized, updated home — and just one easy mortgage payment to manage.

Things to Know

Over the past few decades, variable-rate mortgages have saved Canadians thousands. In fact:

  • You’ll only receive renovation funds after the work is completed and verified
  • You must be able to pay the renovation costs upfront and be reimbursed after inspection
  • Your interest rate is not penalized for using this program — you get the same great rate as any standard mortgage
  • Firm quotes are mandatory and must be submitted during the mortgage approval process
  • Work typically must be completed within 90–120 days after possession

Pro Tip: We recommend working with reputable, licensed contractors who can meet timelines and handle inspection requirements.

Why Choose Better Mortgages?

Unlike lenders who push you into a box, we:

  • Work with multiple lenders who offer this program — not just one bank
  • Know the nuances that make this process efficient and lender-compliant
  • Advise on what will and won’t be approved under the renovation portion
  • Offer faster turnaround times and upfront planning support

From application to inspection, we manage all the moving parts so you can focus on the vision for your new home.

Turn That “Almost Perfect” Home Into the One

If you’re shopping for homes that need TLC — or want to maximize your budget by buying something you can upgrade
— a Purchase Plus Improvements mortgage could be your best move.

Speak with a Better Mortgages specialist today to learn more about how this smart financing tool can help you create your dream space
— all within one mortgage.

Let’s make your mortgage work harder — so your house can shine brighter.