Purchase Plus Improvements Mortgage

Turn a fixer-upper into your dream home.

Not every home is move-in ready. Have you found the perfect place, but it needs a little TLC? We can help you pay for the renovations with one manageable mortgage — with as little as 5% down.

Our expert True North Mortgage brokers can take care of all the details, plus find the lowest possible rate to help you save more on your investment.

What is a Purchase Plus Improvements mortgage?

This program allows you to borrow the cost of renovations (up to a certain percentage) and add it to the home price, rolling it all into one easy-to-manage mortgage payment. Once you take possession of your new home, you can start the upgrades immediately. This type of mortgage comes with a few extra requirements before signing, such as providing quotes for the work that needs to be completed.

What does this type of mortgage allow?

  • Competitive interest rates apply
  • The cost of renovations are added to the home purchase price, with mortgages available up to 95% Loan-to-Value (LTV) or refinances up to 80% LTV
  • Amortization for up to 30 years, depending on the lender

What properties are eligible?

  • Maximum four units, with at least one unit occupied as the principal residence
  • New construction or existing properties

How it works

Step 1: When you have found a property, determine what renovations need to be done and a rough idea of how much they will cost.

Step 2: A True North Mortgage broker will get you approved based on the house price 'as-is.' At that point, you'll need to get in touch with the appropriate contractors and get firm price quotes for the work that needs to be done. Make sure the quotes specifically state the work that is to be completed (in most cases, the work will need to be done by a licensed contractor).

Step 3: Your True North Mortgage broker will then have your mortgage approval revised to include the price of renovations, as per the quotes, and help you complete your mortgage details.

Step 4: After the sale has concluded and you take possession of your new home, you can immediately start the renovations that were agreed upon.

Step 5: Once the work has been completed, a bank representative is sent out to verify that the renovations were completed properly and as required.

Step 6: You'll receive the money to pay the contractors — your lawyer will be instructed by the lender to release the money for the specified renovations.


  • The mortgage interest rate, that you qualify for, is not affected by this program.
  • It is absolutely necessary to have firm price quotes prior to finalizing your mortgage.
  • You will not receive any funds for the renovations until after the work is completed and reviewed by the bank representative.