Buy a home and finance renovations with one mortgage
Available for primary residences and some owner-occupied properties
Improvements are funded after purchase, based on approved renovation plans
Ideal for outdated homes, fixer-uppers, or value-add purchases
Not every home is move-in ready — and that shouldn’t stop you from buying.
A Purchase Plus Improvements mortgage allows you to buy a property and include renovation costs directly into your mortgage, instead of paying for upgrades out of pocket or taking on high-interest loans later.
At Citadel Mortgages, we help buyers structure Purchase Plus Improvement mortgages properly so renovations are lender-approved, funded smoothly, and completed without financing delays.
This guide focuses on helping you navigate the Canadian mortgage market, offering insights into current rates, strategies for securing the best deal, and regional trends.
Mortgage brokers play a pivotal role in helping Canadians find tailored financing options, providing expert advice, and navigating the often complex mortgage market.
For more detailed information on mortgage types, costs, and rights, consult the Government of Canada – Financial Consumer Agency of Canada (FCAC).
A Purchase Plus Improvements mortgage is a financing solution that lets you:
Purchase a home
Add the cost of approved renovations to the mortgage
Complete improvements after closing
Pay for everything under one mortgage and one payment
This program is commonly used for:
Kitchens and bathrooms
Flooring, paint, and cosmetic upgrades
Roofs, windows, and insulation
Structural repairs (lender-approved)
Energy-efficient improvements
💡 The key is proper structuring — not all renovations qualify, and documentation matters.
Learn more about today’s best mortgage rates in Canada.
| Program Type | Purpose | Key Highlights |
|---|---|---|
| Insured (CMHC / Sagen / Canada Guaranty) | High-ratio purchases with improvements | Lower down payment, capped renovation limits |
| Conventional Purchase Plus | 20%+ down payment purchases | Higher renovation allowances |
| Bank Purchase Plus Programs | Standard residential homes | Strict contractor & completion rules |
| Alternative Lender Programs | Non-traditional income or credit | Flexible approvals, higher rates |
🏦 Citadel Mortgages matches you with lenders that support Purchase Plus Improvements — not all lenders do.
Purchase Price: $550,000
Renovation Budget: $40,000
Total Mortgage Amount: $590,000
Improvements:
Kitchen renovation
Bathroom upgrades
Flooring and paint
➡️ Citadel Mortgages structures the file so the purchase closes first, with renovation funds held back and released once work is completed and verified.
✅ Result: Buyer upgrades the home immediately and increases property value without separate financing.
Important to note that the maximum for purchase plus improvement is $40,000.
| Property Type | Eligible |
|---|---|
| Single-Family Homes | ✅ Yes |
| Owner-Occupied Duplexes | ✅ Sometimes |
| Condos | ✅ Limited (lender dependent) |
| Fixer-Uppers | ✅ Yes |
| Investment Properties | ❌ Generally not eligible |
💡 Eligibility depends on occupancy, renovation type, and lender guidelines.
Property & Renovation Review — Purchase agreement + renovation plans reviewed
Contractor Quotes — Written quotes required before approval
Mortgage Approval — Purchase + improvements approved together
Purchase Closing — Property closes normally
Renovation Completion — Work completed post-closing
Funds Released — Lender releases renovation funds after inspection
Citadel Mortgages manages this process to avoid delays, missed deadlines, or declined reimbursements.
Government-issued photo ID
Signed purchase agreement
MLS listing or property feature sheet
Down payment confirmation
Income verification (employment or self-employed)
Credit bureau
Proof of funds (if applicable)
Detailed contractor quotes
Scope of work for each improvement
Estimated timelines
Contractor licensing (if required)
💡 Renovation funds are not advanced upfront — they are released after work is completed and inspected.
Please see our document checklist page for any questions related to documents needed.
| Benefit | Description |
|---|---|
| 🏡 Buy More Homes | Consider properties that need work |
| 💰 One Mortgage | Avoid high-interest renovation loans |
| 📈 Increase Value | Renovate while building equity |
| 🔧 Planned Improvements | Renovations approved upfront |
| 🧾 Predictable Costs | Clear budget before closing |
Yes — lenders require detailed quotes upfront.
After the work is completed and inspected.
Usually no — most lenders require licensed contractors.
Yes, through insured programs with limits.
Yes — some improvements may qualify under CMHC Eco programs.
Simplify your financial planning with our full calculator suite:
🏦 Access to lenders offering Purchase Plus Improvements
🛠️ Expertise structuring renovation-based purchases
📋 Clear documentation guidance from day one
⏱️ Reduced risk of funding delays
🤝 Hands-on support from offer to completion
If you’re buying a home that needs upgrades, Citadel Mortgages helps you finance the purchase and renovations together — safely and efficiently.