Canadian Purchase Plus Improvements Mortgage

Home mortgage refinancing

A purchase plus improvements mortgage is a CMHC insured mortgage for up to 95% LTV to cover the purchase price of a home as well as an amount to pay for immediate major renovations or other improvements that the purchaser may wish to make to the property. Funds must be available to the borrower to begin or complete renovations, depending on how extensive (more or less than 10% of the purchase price) the renovations are.

Canadian Purchase Plus Improvement Mortgage

The insured loan will be based on the lower of:

• The purchase price plus the actual cost of improvements, or,
• The “as improved” market value. Prior to approval, CMHC will determine the market value of the property after renovations / improvements. The lending value will not exceed the market value of the property after renovations / improvements.

Applicants must have the following:

• A minimum of 5% down payment of total cost (purchase price plus renovations/ improvements).
• Cost estimates for renovations/improvements.
• Qualifications to obtain a CMHC insured loan through an approved lender.


Purchase Price $100,000
Renovations or Improvements Costs $25,000
Total Cost $125,000


Lending Value $125,000
Maximum Mortgage Allowable (95%) $118,750
Minimum Down Payment Required (5%) $6,250

Apply online today for a purchase plus improvement mortgage in Canada.