Purchase Plus Improvements Mortgage

we love having guest blogs on or site and this is a topic that comes up a lot. Very rarely does the perfect house exist but most times you can create the perfect house with some minor changes. The purchase plus improvements mortgages is a great way to get those changes without having to come up with the cash upfront. Sarah Astles explains the ins and out. 


Are you looking for your dream home but facing a bidding war with other buyers in this hot market?  Or love a portion of the home but would be better with a few changes? We are seeing a lot of this during our current market environment, both in Alberta and in British Columbia!  You can avoid the bidding wars because there are homes on the market that aren’t getting second looks that have a lot of potential to be someone’s dream home.  They just need a little imagination and our Purchase Plus Improvements mortgage!

• Are you wanting to buy a home that has the potential to be your dream home but they aren’t sure how or when they’ll have the funds or equity to fix, renovate, or upgrade?
• Are you settling for an “as-is” property because that’s all they qualify for?

• If you don’t do the improvements now, they won’t be able to refinance until the mortgage is below 80% LTV. How long will this take if you only put 5% down today? Our studies show 8-10 years and that’s assuming the value hasn’t dropped by the time they are ready to refinance.

• Sure, you can apply for an unsecured loan or LoC, or use their credit cards … but at what cost? Most loans and LoC’s are Prime plus 5% or more, and most credit cards start at 19.99% or higher. How about 4.14% through our Purchase Plus Improvements program? Or 4.54% if you pair that with our Peace of Mind Cash Back?

• We have lenders that will allow as much as $100 000 (pending approval) in improvement costs on top of the purchase price

So how does this work if you get an approval?Purchase Price:  $350 000Cost of improvements (with quotes from contractor)  $50 000purchase price plus improvements $400 000 Max Mortgage amount (not including CMHC premium required for anything under 20% down) $380 000

So how does this work if you get an approval?

Purchase Price: $350 000
Cost of improvements (with quotes from contractor) $50 000
purchase price plus improvements $400 000
Max Mortgage amount (not including CMHC premium required for anything under 20% down) $380 000

The money for the purchase would be released at time of possession, the improvement money would be held with the lawyer until the improvements were complete and inspections done. For larger improvements there are draw schedules available.

• Value of home to calculate mortgage amount will be assessed by an appraiser at after the improvement value

Contact Sarah Astles at mortgages@sarahastles.ca or 403-704-3674