Home Purchase + Improvements

This program allows you to add renovation costs to your mortgage at the time of purchase.

How It Works:

You must provide completed estimates before submitting your mortgage application.
These estimates are added to the agreed purchase price, creating what’s known as the “as-improved value” (home cost + renovation costs).
Borrowers can put down as little as 5% of the as-improved value.

Important: Be sure to extend the financing condition date to allow enough time for obtaining estimates.

Lender & Insurer Guidelines for Renovation Financing

While lender guidelines may vary slightly, the two primary insurer programs allow for:

Important: The as-improved value must still be supported by an appraisal and approved by the insurer.

Upfront Payment Required – Lenders only reimburse for completed work, meaning you must cover the renovation costs upfront. Funds are released only after receipts are provided and an inspection is completed.
Mortgage Payments Begin on Possession Date – You start paying for the full mortgage amount as of your possession date.
Improvement Funds Held in Trust – The renovation funds are sent to your lawyer, who holds them in trust until the work is verified as complete.
Appraisal Costs – You may need to pay for an initial appraisal and a final inspection to confirm completed work. Estimated cost: $350 if both are required (unless the insurer approves the value as-is).