Are you looking to do some renovations to your home?


Is your home getting too small for your family?  Are you looking to perhaps purchase a new property that will need some renovations?  There are lots of ways to finance either, depending on the size of your project.

Since every homeowner’s financial needs are unique, it’s best to meet with us, who can recommend the best solution for your needs.  PLUS, we have an exclusive relationship with Above and Beyond Home Concepts!  They can handle all of your home renovation and repair needs.

Purchase plus Improvements

A purchase plus improvements, allows you to do those much needed repairs or renovations on a new home, before you have saved up the necessary funds.  The lender uses the ‘as-improved’ value (Purchase price + renovations/repair costs) to determine the maximum loan amount and down payment requirements.

Who can qualify for purchase plus improvements?  Qualified homebuyers who want to make improvements to their newly purchased property immediately after taking possession.

Purchase Plus Improvement requirements: 

  • The homebuyer would need a minimum down payment of 5% of the ‘as-improved’ value
  • The work usually needs to be completed within 60 days after the completion date.
  • The improvements cannot exceed the lesser of the 10% of the property lending value or $40,000.
  • Eligible improvements/renovations have to be chattels – or attached to the structure (house/condo/townhouse/ etc)
    • For example, new kitchen, bathroom, flooring, roof are acceptable.  Appliances are not acceptable.

How does it work?

  • You would need to provide the lender with a detailed quote for the work that is to be completed.  This is usually done when you write up an offer to purchase.
  • The lender will include the renovations into the mortgage approval.
  • The lender will hold back the renovation/improvement amount with the lawyer until the work is completed.  It is therefore up to the client to come up with the necessary renovation costs until the work is done.  To proof to the lender that the work has been completed, we can either supply them with an appraisal showing the work has been completed and the value is equal to , or greater, than the as-improved value, or copies of the paid receipts.  Once the lender is satisfied the work has been completed, the lawyer will then release the money to you.

We have a program set-up with Above & Beyond Home Concepts to make this process easy and seamless.  They will help out with the quote, renovations and the financing, until the work has been completed.  All with a small deposit, so you do not need to fit the bill on the renovation costs.  Don’t delay, if you are considering home renovations, or the purchase of a new property with improvements, contact us to consider your best options for financing.

Your friends in the Mortgage Business

Steve D’Souza & Nathan Isherwood