Service — Purchase Plus Improvements
Buy the home, fix it up — with one mortgage
A PPI mortgage rolls the cost of renovations into your mortgage when you buy, based on the home's "as-improved value", so you make one single payment.
What it actually is
A Purchase Plus Improvements mortgage finances the home AND the renovations together, based on what the home will be worth after the work is done — the "as-improved value". Your down payment is calculated on that improved value, so you can buy a home that needs a little love without draining your savings or putting renovations on a high-interest credit card.
How it works
- 1
Find the home
And picture the improvements you'd make.
- 2
Get a written quote
A real contractor estimate for the work, before you close.
- 3
We submit it to the lender
Purchase price plus the quote; they approve your mortgage on the as-improved value.
- 4
Close on the home
The renovation money is held back in trust by your lawyer (you don't get it yet).
- 5
Do the work
You pay the contractor up front, or arrange terms with them.
- 6
Get it verified
An appraiser confirms the improvements are done.
- 7
Get reimbursed
The held-back funds are released to pay you back. One mortgage, one payment.
A quick example
- Purchase price
- $400,000
- Renovations (new kitchen + flooring)
- $30,000
- As-improved value
- $430,000
- Down payment (5% of the improved value)
- $21,500
Illustrative only — your numbers, rates and insurer rules will vary.
How much can you add?
Usually up to the lesser of 20% of the as-improved value or $40,000 through Sagen or Canada Guaranty, which cover both cosmetic and structural upgrades. CMHC's version leans toward energy-efficient improvements (around 10%). Rahul matches you to the right insurer and lender for your project, so you don't have to figure out which is which.
What counts as an improvement?
Permanent upgrades that add real value — kitchens, bathrooms, flooring, windows, roofing, finishing a basement, fresh paint, light fixtures, energy-efficiency upgrades. It generally doesn't cover things you take with you, like furniture or appliances.
The one thing to plan for
Because the renovation money is held back until the work is finished, you'll need to cover the contractor before you're reimbursed. That's the part most people don't expect — and it's exactly the kind of thing Rahul plans with you up front so there are no surprises at the worst moment.
Is it right for you?
- You found a home under budget that needs cosmetic or structural work.
- You'd rather one mortgage payment than a high-interest line of credit.
- The improvements will genuinely add value.
Found a home that needs a little work?
Send Rahul the listing and a rough idea of the renovations — he'll tell you in plain language whether Purchase Plus Improvements is the right move, and what it looks like by the numbers.