How to include improvements into the purchase price of your home

moneypit, mortgage, improvements, purchase plus improvementsYou’ve found the perfect house, but there’s a small problem — it needs a few fix ups.  It’s going to take some cash flow to get everything completed, you ask is there a way to get done without being penniless.  Yes there is:

The Purchase Plus Improvement Program lets you add the cost of upgrades to your mortgage before you move in, allowing you to benefit from a low mortgage interest rate and make only one payment.

Depending on the Mortgage Default Insurer, CMHC or Genworth will depend on the amount of the improvements allowed:


  • Improvements cannot exceed 20% of the initial value of the property or $40,000.


  • Improvements cannot exceed 10% of the as improved value of the property.

Required Documentation:

  • Estimates will be required for improvements up front on each purchase plus improvements transaction my recommendation is contacted one Trusted Saskatoon’s contractors.
  • Improvements must be completed within 120 days at which time an inspection report will be ordered to verify the improvements are complete.
  • The inspection report is to verify that the improvements are complete prior to advancing funds.
  • Note an inspection report is only required for improvements of $15,000 or greater. If improvements are $15,000 and less, then paid invoices will suffice as proof of completion.
  • Improvements must add value to the underlying security to qualify.

Blogged by Elise Hildebrandt, AMP, Mortgage Associate, Broker Lic# 316103 at The Mortgage Centre, Brokerage Lic #315847, Saskatoon, SK.  She has been in the financial industry for 17 years. Please contact her today if you have any questions about financing renovations for your own home or your mom’s.   www.elisehildebrandt.ca.

Do you know what your mortgage options are? She does.

She has been given the “Thumbs Up” by Trusted Saskatoon http://trustedsaskatoon.com/listings/mortgages.aspx


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