PURCHASE PLUS IMPROVEMENTS

Buy the home. Make it yours. Finance the improvements.

Found the right home… but it needs a little work?

A Purchase Plus Improvements Mortgage may allow you to include the cost of eligible renovations in your mortgage when purchasing your new home.

Instead of passing on a property because the kitchen is dated, the floors need replacing or the bathroom needs an update, you may be able to purchase now, renovate after possession and finance both together.

HOW DOES IT WORK?

1. Find Your Home
Purchase a property that has potential but needs improvements or updating.

2. Decide What You Want to Improve
Identify the renovations you would like to complete and obtain written quotes or estimates before your mortgage is finalized.

3. We Structure the Financing
The cost of the approved improvements is incorporated into your mortgage financing, subject to lender and mortgage insurer approval and the property’s supported “as-improved” value.

4. Complete Your Purchase
Your home purchase closes and you take possession. The renovation portion of the mortgage is generally held back by the lender until the approved work is completed.

5. Complete the Renovations
Complete the improvements within the timeframe required by your lender. You may need access to your own funds or credit to pay contractors and suppliers while the work is being completed.

6. Verification & Release of Funds
Once the approved work is complete, the lender verifies the renovations. This may involve receipts, invoices, photographs and/or an inspection. Once approved, the renovation holdback is released according to the lender’s process.

WHAT TYPES OF IMPROVEMENTS MAY QUALIFY?

✓ Kitchen renovations
✓ Bathroom renovations
✓ New flooring
✓ Windows and doors
✓ Roofing
✓ Plumbing or electrical upgrades
✓ Basement finishing
✓ Heating and energy-efficiency improvements
✓ Other permanent improvements that add value to the home

Generally not eligible: furniture, electronics and other movable personal items. Eligibility ultimately depends on the lender and mortgage insurer.

QUICK EXAMPLE

Purchase Price: $650,000
Approved Improvements: $40,000
Purchase + Improvements: $690,000

Rather than purchasing the home and trying to arrange separate renovation financing afterward, we can explore whether the $40,000 of improvements can be incorporated into the mortgage financing from the beginning.

Your required down payment and maximum mortgage are calculated according to applicable mortgage-insurance and lender requirements.

IMPORTANT THINGS TO KNOW

• You must qualify for the total mortgage, including the approved improvements.
• Renovation quotes are generally required before final mortgage approval.
• The property’s as-improved value must support the financing.
• The renovation funds are typically not provided to you as cash on closing day.
• You should have a plan to cover renovation expenses until the lender releases the holdback.
• Renovations must be completed within the lender’s required timeframe.
• The lender will require verification that the approved work has been completed.
• Program guidelines vary between lenders and Canada’s three mortgage insurers: CMHC, Sagen and Canada Guaranty.

FOR REALTORS

Don’t automatically rule out the dated house.

If your buyer loves the location, layout and property but doesn’t love the finishes, talk to us before writing the offer.

We can review the buyer’s qualification and determine whether a Purchase Plus Improvements strategy could allow them to buy the property and finance eligible renovations at the same time.

BEFORE YOU WRITE THE OFFER ~ CALL US.

PRIMEX MORTGAGES
Trish Pigott | Owner / Mortgage Broker
Guiding Canadians Home.

Purchase Plus Improvements programs are subject to borrower qualification, property valuation, lender guidelines and mortgage insurer approval.

Program requirements may change. Contact Primex Mortgages for current eligibility and financing details.