Purchase Plus Improvements

See how planned renovations can roll into your mortgage based on the as-improved value. Then talk to us about your real options.

Your Numbers

Estimate the mortgage and payment when improvements are financed at purchase.

Purchase price

Planned improvements

Lenders use the lesser of the cost or the value the work adds.

Down payment (%)

Interest rate (%)

Amortization

First-time buyer or newly built home

On an insured mortgage, a 30-year amortization is open only to a first-time home buyer or a newly built home.

Estimated mortgage amount

As-improved value$0

Down payment$0

Mortgage$0

Estimated monthly payment$0

With less than 20% down, default insurance may apply.

APR. OAC. For illustrative purposes only. Subject to change without notice.

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This is not financial, legal or lending advice. This is not an offer of financing or a rate quote. Improvements must be approved by the lender in advance, funds are typically advanced after the work is verified complete, and program limits apply, often a cap on the improvement value. Default insurance may apply with less than 20% down. Estimates use Canadian semi-annual compounding and assume a fixed rate held for the full amortization shown. Speak with us for figures specific to you. Mortgage broker services provided by TMG AnchorPoint Mortgage Inc., NS Licence 3000145, NB Licence 260055962, NL Licence 26-07-TM223-1.

What These Numbers Mean

Plain-language definitions and the typical ranges, so you can play with the inputs with confidence.

Purchase price: The agreed price of the home before any renovation. The improvements are added on top to set the value the lender works from.
Typical: your accepted offer price
Planned improvements: The cost of the renovation you want to finance. Lenders use the lesser of the cost or the value the work is expected to add, and programs usually cap the improvement amount.
Typical: cap is often the lesser of about 10 percent of as-improved value or a set dollar limit
As-improved value: Purchase price plus eligible improvements. The mortgage and the loan-to-value bands are calculated against this figure, not the raw purchase price.
Typical: purchase price plus the approved improvement amount
Down payment percent: Your cash up front as a percent of the as-improved value. With less than 20 percent down, default insurance applies and the premium is added to the mortgage.
Typical: 5 percent minimum on the first $500,000, 10 percent above; 20 percent avoids insurance
Interest rate and amortization: The rate and number of years used for the payment. Estimates use Canadian semi-annual compounding and assume a fixed rate held for the full amortization shown.
Typical: 25-year amortization standard, up to 30 on a conventional or eligible insured mortgage
Default insurance premium: With less than 20 percent down, a one-time premium applies by loan-to-value band and is usually added to the mortgage. An amortization over 25 years adds a 0.20 percent surcharge.
Typical: owner-occupied 2.40 percent to 80 percent LTV, 2.80 to 85, 3.10 to 90, 4.00 to 95
Estimated mortgage and monthly payment: The mortgage is the as-improved value less your down payment; the payment includes any premium. Note that improvement funds are typically advanced only after the lender verifies the work is complete.
Typical: funds for the work are released after completion is verified

These are general ranges, not your numbers. The right figure depends on your situation, the property, and the lender. Talk to us and we will pin it down.

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Purchase Plus Improvements

Your Numbers

What These Numbers Mean

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