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Buying a Home That Needs Work: Purchase Plus Improvements

Found a home that is right, except it needs updating? You may not need a separate loan for the renovations. Purchase Plus Improvements rolls the cost of planned work into your mortgage, based on what the home will be worth once it is done. Here is how it works.

How It Works

Start With Quotes

You provide contractor quotes for the planned work up front.

Based on As-Improved Value

The mortgage is sized on the home's value after the work, within limits.

Funds Released After Work

The improvement money is held and released once the work is done and verified.

One Mortgage, One Payment

The purchase and the renovations sit in a single mortgage.

Limits Apply

The improvement portion is capped, and rules vary by lender and insurer.

How the Steps Go

  1. Get Your Quotes
  2. We Size the Financing
  3. Close and Start the Work
  4. Funds Released When Verified

Is It the Right Fit

When It Fits

A home that needs updating but is otherwise right, where the work adds value and you have quotes and a plan. It is usually cleaner than taking a separate loan for the renovations.

What to Know

You typically pay for the work first and are reimbursed once it is verified, so plan your cash flow for the gap. Quotes, timelines, and improvement limits all apply.

The right fixer-upper can become the right home, financed in one mortgage. We will help you size the improvement budget and line up the financing before you make an offer. Planning the work itself? See our Home Renovation Tips. Any figures are illustrative only.
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Eyeing a Home That Needs Work?

Bring us the home and the renovations you have in mind, and we will walk through whether Purchase Plus Improvements fits. A licensed member of our team will follow up.

Start a conversation
(902) 835-6420  |  contact@tmgharbourtown.ca

Information here is general and educational. It is not financial, legal, or lending advice, and it is not an offer of financing. Purchase Plus Improvements rules, improvement limits, and how funds are advanced vary by lender and insurer and can change; improvement funds are typically released only after the work is completed and verified. Any figures are illustrative only. All financing is subject to lender review, property review, and supporting documentation. Submission of a form does not guarantee approval or financing.