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Purchase Plus Improvements Mortgage Program

Writer's picture: Gert MartensGert Martens


Mortgage Expertise with Gert Martens


Hi there! Gert Martens with the Gert Martens Mortgage Team. I’m here to talk to you today about purchase plus improvements.


What this program allows you to do is include the cost of renovations in your new mortgage. There are a couple of simple steps to follow with this type of mortgage.


First, you will need to get quotes for all of the work that will be included. You can provide quotes for the materials you will need for any work that you plan to do yourself, but please keep in mind, you will need to have savings or a line of credit to purchase the materials.


Lenders are looking for items that increase the value of the home and cannot be removed from the property. Appliances and/or luxury items (such as new hot tubs) would not be accepted by the lender as part of the purchase plus improvements program. They are looking for improvements that increase the value of the property. Examples of what they are looking for would include:

  • A new kitchen

  • New flooring

  • A new furnace

  • New roofing

  • New windows

These are all items that increase the value of the home and cannot be removed.

Once all of the quotes are provided, we will be able to submit your mortgage for approval. We do submit the total value of the quoted amount plus your purchase price. The downpayment is always based on the total amount.


Once you take possession of the home, you can begin the renovations. The funds for the renovation project will be held in trust with your lawyer. Make sure you know your lender’s time limits on the renovations. Generally, lenders allow up to 120 days to complete your project.


Once the renovation is 100% complete, you need to contact your mortgage broker and they will order an inspection to confirm all of the work has been completed. Some lenders do require proof of work completed via invoices from the contractor or receipts for your materials so please make sure you keep those documents handy in order to ensure those funds can be released to you.


Once your lender has confirmed the work has been completed, the layer will be able to release the funds for the renovation project. The most important thing to remember is that a lender will only allow the release of the funds once the work is 100% complete.


If you have any questions about obtaining a purchase plus improvements mortgage, don’t hesitate to give me a call today! I’m always happy to help!


Thank you for watching and I hope to hear from you soon!

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