John Antle | Mortgages Beyond The Bank

Your Kelowna Mortgage Broker

A fantastic option available through many lenders is called a Purchase Plus Improvements mortgage. This mortgage allows buyers to create their dream house by having extra funds available to complete renovations on the property. If you are looking to buy a home and fund renovations, a Purchase Plus Improvements mortgage is a great option for you to consider.

Many real estate listings require renovations. Contact John Antle today for mortgage solutions that help cover home improvement costs.

How much money can I receive to do renovations with this mortgage?

The Canada Mortgage and Housing Corporation (CMHC) Purchase Plus Improvements program allows you to borrow up to 10% of the “as improved” value of your home. For example: If you buy a home with a purchase price of $300,000 and the renovations will improve the value of the home by $30,000 your home will be worth $330,000 after the renovations are completed. Therefore, you could borrow $33,000 or 10% of the improved value of $330,000 to cover improvement costs. 

If I need to update the electrical wiring and I have experience to complete the job myself, would a Purchase Plus Improvement Mortgage pay me to do the work?

No, Purchase Plus Improvement mortgage approval requires that a certified contractor be hired to complete the renovations on the property.

Are there specific renovations that can be completed with a Purchase Plus Improvement Mortgage?

The process is as follows: It is a requirement for you to receive a quote from a reputable contractor to be submitted to both the lender and CMHC (if applicable) for approval. This will specify the work being completed on the property. Not all renovations you may wish to have done will necessarily be approved by the lender. Generally, the lender will consider approval for renovation funds that are significant and will involve the structure of the property. A good example is a new kitchen or a new roof. Adding a basement suite or replacing a furnace may not be approved.

Can I purchase new appliances through a Purchase Plus Improvement Mortgage?

No, anything that is not affixed to the principal residence and could be removed would not be approved by the lender or CMHC.

How do I pay the contractor for the renovations being completed?

When the purchase is completed the lender will forward the dollar amount you are borrowing for renovations to your lawyer. The lawyer holds these funds “in trust” until the renovations are complete. Then an appraiser will view the home and provide a report to the lender confirming the renovations have been completed and will reference the original quote. Next, the buyer will receive the renovation funds to pay the contractor for the work that is completed from the lawyer. Since CMHC and the lender will require the work to be completed prior to release of funds, you may be obligated to pay the contractor a deposit or progress payments. Talk to your mortgage broker about options to assist with these payments in addition to your mortgage payment. 

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    Purchase Plus Improvement Mortgage Solutions and Much More

    At John Antle, our team is devoted to helping you achieve your long-term goals by making your home purchase as stress free as possible. With traditional financial institutions, homebuyers face strict requirements and long waiting periods. But with an alternative lender, there are Purchase Plus Improvements mortgage possibilities that you may not have considered. 


    We are happy to walk you through the mortgage process and discuss all of the details to help you get your mortgage approved. Thanks to our network of reputable mortgage lenders, John Antle is the Kelowna Mortgage Broker who can help make your dream home purchase and home renovations into reality.

    The Right Mortgage

    The Right Mortgage

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    Suite Of Insurance Products

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    John Antle Mortgage Alliance has access to over 60 of the Top Moneylenders. Let us find the right Mortgage to suit your needs!