* Cambrian will be closed on Friday September 30 for the National Day for Truth and Reconciliation

Buying to renovate

Man Installing Glass Door

Dream location, enough space, and built to last. This could be your dream home, but you only have so much to spend and that robin’s blue bathroom and dated kitchen just aren’t going to work for you?

Don’t worry, you have options. Consider a home renovation mortgage, also known as a purchase plus improvements or simply an improvements mortgage. Here’s how it works:

How much can you borrow?

You can borrow up to 10% of the projected value of the home once the renovations are complete. Let’s say your dream home is listed for $300,000 and the projected value once renovations are complete is $350,000. That means you can borrow up to 10% of $350,000 or $35,000 for renovations.  This amount would be added to your mortgage.

What steps do I need to follow to qualify?

  1. When submitting your Offer to Purchase, you must make a condition that a licensed contractor inspect the property. This quote is then submitted to Cambrian & the appropriate insurance provider for approval.


  2. On closing day, the money that is designated for improvements is given to your attorney to be held until your renovations are completed. This is an important step to remember, as you will not have access to the funds to pay your contractor until after the renovations are complete, so consider having access to funds such as savings or a Cambrian Accessline of Credit to pay deposits and ongoing expenses.


  3. Once the renovations are completed, Cambrian will send an appraiser to your house to confirm that all has been completed as agreed. Your lawyer will then be instructed to release the funds to you. 

Improvements mortgages will not cover appliances, as they can be removed when you sell the home and move out, or something like a furnace replacement, as it should be in good working order when you purchase the house. You will have to cover these type of costs out of pocket.

Expand your Options

An improvements mortgage gives you the option to consider more homes, even those that may need a little TLC.

Make an appointment today to learn more about Home Renovation Mortgages.