What renovations qualify for a Purchase Plus Improvements Mortgage?

Most lenders allow renovations that improve livability or efficiency, such as kitchens, bathrooms, flooring, roofing, HVAC systems, accessibility modifications, and energy-efficient upgrades. Luxury items like pools are usually excluded.

Can I do the renovation work myself?

Some lenders allow self-completed renovations, but typically only cover material costs, not labour.

Will my mortgage rate be higher with this program?

In most cases, the mortgage rate is the same as a standard purchase mortgage. The renovation component does not usually increase the rate.

Can I combine this program with First-Time Home Buyer incentives?

Yes. Purchase Plus Improvements mortgages can often be combined with first-time buyer incentives, subject to lender and program rules.

How are renovation funds released?

Renovation funds are held in trust and released after the work is completed and verified through an inspection or appraisal.

Is there a limit on the renovation budget?

Many lenders allow renovation budgets of up to 10–20% of the purchase price, though limits vary by lender.

What happens if renovations go over budget?

Any costs above the approved renovation budget must be covered by the homeowner, so careful planning and accurate quotes are important.

Purchase Plus Improvements Mortgage

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The right mortgage, the right lender, the right strategy.

Purchase Plus Improvements

Have you ever walked into a home and thought, “This is the perfect neighbourhood, but the kitchen needs work,” or “I wish this had an extra room for our growing family”? Many buyers face the choice between a move-in-ready home and the right location. A Purchase Plus Improvements Mortgage lets you stop choosing — and finance both the purchase and the renovations in one mortgage.

At Sunlite Mortgage, we believe buying a home should mean stepping into a space that fits your lifestyle, not settling for something you plan to “fix later.” By packaging your improvements into the mortgage, you can obtain the upgrades you need now at mortgage rates that are far lower than those of credit cards or personal loans.

Ready to see how much you can borrow for renovations. Use our Affordability Calculator and find out in minutes.

What Is a Purchase Plus Improvements Mortgage?

A Purchase Plus Improvements Mortgage allows you to finance upgrades at the same time you buy your home. Instead of taking out an unsecured loan, using credit cards or using savings, you borrow for both in one package.

It’s an ideal solution if:

You’ve found the right home in the right neighbourhood, but it needs updates.
You want to add value through improvements rather than paying a premium for someone else’s upgrades.
You need to make functional changes, like energy-efficient upgrades or accessibility modifications.

Lets Explore the Mortgage Options available to you with clear guidance every step of the way

How Does a Purchase Plus Improvements Mortgage Work?

The process is designed to be straightforward. Your Sunlite Mortgage agent will work with you to get your:

Pre-approval: We help you qualify for the purchase price.
Offer accepted: Once you’ve secured the property and identified the necessary improvements, obtain a detailed quote from your contractor.
Underwriting and Appraisal: The mortgage application and the quotes are submitted with your application to the lender for approval. Once approved, an appraisal is ordered to determine the current value and the completed value of the property once the improvements are done.
Mortgage Approval and Closing: Once the lender approves the mortgage for the purchase, including the improvement, you can close and take possession of your property on closing day. Your lawyer will hold the funds for the improvements in their trust account.
Complete the Improvements: Once you have possession, you can complete the improvements using your own funds to pay your contractor.
Second Inspection: Once the improvements are completed, the appraiser will conduct another inspection of the property and provide a report to the lender. The lender will then review the report.
Release of Funds. Once satisfied with the improvement and value, the lender will instruct the lawyer to release funds.

If you’re planning to do the renovations yourself, lenders will only cover the cost of materials, not labour.

Real estate investors using the BRRR Mortgage Strategy - Buy, Renovate, Reent, Repeat

A First Home with Room for Baby

When Sarah and Daniel bought their first home, they loved the neighbourhood — close to work, parks, and family. But with a baby on the way, the house needed one more bedroom. Instead of walking away or relying on credit cards, they used a Purchase Plus Improvements Mortgage to buy the home and renovate at the same time.

With our guidance, their mortgage covered the purchase price plus the cost of converting the basement into a cozy nursery. The renovation funds were released after an appraiser confirmed the work, and by the time their baby arrived, the room was ready. Sarah and Daniel were able to focus on their new chapter, knowing they’d secured both the right home and the space their family needed — all without stretching their budget.

We will take the time to understand your full picture and help match you with the solution

How Much Can You Borrow for Renovations?

Most lenders allow renovation budgets up to 10–20% of the home’s purchase price, though some set fixed maximums.

For example:

Purchase price = $600,000
Allowed improvement budget = 10% ($60,000)
Total mortgage approval = $660,000

Because each lender has its own guidelines, working with Sunlite Mortgage ensures you know exactly what’s possible before you commit.

Not sure what you qualify for? Talk to a Sunlite Mortgage specialist, and we will help you calculate your improvement amount.

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Who Should Consider a Purchase Plus Improvements Mortgage?

This program is built for homebuyers who want:

A property in the right neighbourhood that needs cosmetic or structural work.
To avoid high-interest credit cards or personal loans for renovations.
To build equity by adding value rather than paying extra for a “perfect” home.
To customize their first home or adapt a property for a growing family.

Are you a first-time homebuyer considering a purchase and improvement mortgage?

What Are the Benefits of a Purchase Plus Improvements Mortgage?

The biggest advantage is simplicity. One mortgage, one payment — not a patchwork of loans. Other benefits include:

Lower borrowing costs → Renovations are financed at mortgage rates, not credit card or personal loan rates.
Immediate comfort → Move into a home that already feels like yours, rather than waiting to save up later.
Equity growth → Smart upgrades add long-term value to your property.
Energy and lifestyle improvements → Save on monthly utilities or make your home functional for multigenerational living.

Our support continues well beyond approval - we will be here to guide you, check in and help you move

How Can Sunlite Mortgage Help?

At Sunlite Mortgage, we don’t just find you a lender. We coordinate your entire file, so your improvement quotes are properly included in your approval. With access to over 65 lenders — banks, credit unions, insurers like Sagen, and alternative programs — we know exactly which lenders support this program and how to position your application for success.

Because we work for you (not the banks), we negotiate terms and pass along discounts that aren’t always published. We also coordinate with your realtor, contractor, insurer, and lawyer so everything runs smoothly from offer to completion.

Ready to start building your dream home? Apply Online Today with Sunlite Mortgage.

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Purchase Plus Improvements Mortgage FAQs

1. What renovations qualify for this program?

Most lenders allow upgrades that improve livability or efficiency, such as kitchens, bathrooms, flooring, roofing, HVAC systems, or accessibility modifications. Luxury items, such as pools or hot tubs, are usually excluded.

2. How long do I have to complete the renovations?

Typically, within 60 to 120 days of closing. We’ll help align the timeline with your contractor.

3. Can I do the work myself?

Yes, but most lenders only reimburse the cost of materials, not your labour.

4. Will my mortgage rate be higher for this program?

In most cases, no. These mortgages often carry the same rates as standard insured or insurable purchases.

5. Can I use rental income to qualify?

No, this program is for personal-use homes. For rental properties, see our Investment Property Mortgage page.

6. Can I combine this with the First-Time Home Buyer incentives?

Yes. You can use your RRSP Home Buyers’ Plan (HBP), First Home Savings Account (FHSA), and even provincial rebates along with this program.

7. How do lenders release the improvement funds?

They’re held in trust and released once an appraiser confirms the work is complete.

8. Is there a limit on the improvement budget?

Yes, usually capped at 10–20% of the home’s purchase price. We’ll confirm the exact limit for your lender.

9. Can this program be used for energy-efficient upgrades?

Absolutely. Upgrades like insulation, windows, or high-efficiency heating systems are encouraged.

10. What if the renovations go over budget?

You’re responsible for covering any overages. That’s why we help you plan realistic quotes upfront.

Take the Next Step

Our experienced mortgage specialists can guide you through the Purchase Plus Improvements process, helping you qualify for more — and make the most of your new home. There’s no cost to talk, and no obligation to apply.

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