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Purchase Plus Improvement


The Purchase Plus Improvements program is available from all three mortgage insurers. Basically, it allows you to purchase a home that might need some renovation work and incorporates the costs into the mortgage up front, rather than having to get a separate loan or line of credit later on.

When you’re out shopping, you may find the perfect home on the perfect street with a great layout that just has a very old kitchen or old flooring. The home may need some basic renovations to make it your dream home. So, if you’re not afraid of a little elbow grease or if you’re willing to go hire a contractor to do that type of work for you, it can be an excellent opportunity to take a lot of the competition out of the offer market on that particular home. Looking past the total condition of the house right now and considering its future potential, we can incorporate your renovation costs at the outset.

  • Purchase Plus Improvement Purpose and Maximum Limit of the loan
    Purchase transactions: 1 & 2 units: 95% LTV (includes both purchase & improvement amount) 3 & 4 units: 90% LTV ( includes both purchase & improvement amount) Multiple advances to a maximum of four (excluding initial purchase advance) are permitted. Advances managed by lender or by Genworth Canada if improvements exceed $40,000 or 20% of initial value. Lending value is based on the lesser of the improved property value or the sum of the purchase price plus direct costs of the improvements.
  • Eligible Properties
    Maximum 4 units where 1 unit must be owner occupied. New construction covered by a lender approved New Home Warranty Program. Existing resale properties. Readily marketable residential dwellings, located in markets with demonstrated ongoing re-sale demand. Estimated remaining economic life of the property should be a minimum of 25 years.
  • Terms / Qualify Interest Rate
    Fixed, standard variable, capped variable and adjustable rate mortgages are permitted For loans with fixed rate terms greater than or equal to 5 years, the contract rate is used For loans with fixed or variable rate terms less than 5 years, the qualifying interest rate is the greater of the contract rate or 5-yr benchmark rate
  • Borrower Qualification
    Existing requirements related to income, down payment and credit worthiness apply. Gifted down payments from immediate family member can be used, provided they are properly verified, non-repayable and all other characteristics of the borrower are acceptable. Government grants may be considered if pre-approved by Genworth. For specific qualifications related to 3 & 4 unit properties refer to Homebuyer 95 Product Overview.
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