Purchase with Improvements or Renovations

Elevate Your Home Purchase Experience

You’ve identified your dream home, but it requires some renovations, be it an aging bathroom, a compact kitchen, flooring, or even a new roof. If you find yourself short on additional funds alongside the down payment and closing costs, our solution allows you to incorporate the renovation expenses into your mortgage.

Obtain Contractor Quotes

Once you’ve selected a home, gather quotes from a contractor for the necessary renovations. These quotes are then added to the purchase price, establishing the new value of the home. Your minimum down payment is then calculated based on this adjusted value.

Submission for Approval

The quotes, along with the offer to purchase, are submitted to the lender for approval. Both the lender and mortgage insurer review the quotes to ensure they align with the increased home value. In some cases, an appraisal may be required to verify this.

Funds Held in Trust

Upon closing, the funds are transferred to your lawyer, who holds them in trust until the renovations are completed.

Post-Renovation Inspection

After the renovations are finished, an appraiser conducts an inspection and submits a report to the lender. The lender reviews and, once satisfied, instructs the lawyer to release the funds to you.

Under the existing regulations, you can add up to 20% of the purchase price, to a maximum of $40,000, to your mortgage for renovations.

An important caveat is that you cannot change the nature of the renovations after receiving funding. For instance, you cannot switch from a new roof to finishing the basement.


  • Purchase price of home: $260,000
  • Upgrades: $15,000
  • New Value: $275,000
  • Minimum down payment: $13,750 (5% of new value)
  • Mortgage Amount: $261,250 (plus CMHC/Genworth)

Get In Touch

1330 Mid-Way Boulevard, Unit #1
Mississauga, ON L5T 2K3 Canada

(647) 525-4005

Call us now


Mon: 9:00 AM – 6:00 PM
Tue: 9:00 AM – 6:00 PM
Wed: 9:00 AM – 6:00 PM
Thu: 9:00 AM – 6:00 PM
Fri: 9:00 AM – 5:00 PM
Sat: Closed
Sun: Closed

Mortgage Alliance - LIC # 10530