Turn Your New Home Into Your Dream Home in British Columbia
With limited housing inventory across Vancouver, Surrey, Langley, Coquitlam, the Lower Mainland, and the Fraser Valley, many home buyers are finding it difficult to purchase a property that checks every box. In today’s market, the “perfect” home often isn’t move-in ready—but it may have the potential to become exactly what you want.
That’s where a Purchase Plus Improvements Mortgage can make a big difference.
What Is a Purchase Plus Improvements Mortgage?
A Purchase Plus Improvements Mortgage allows home buyers in British Columbia to finance renovations as part of their mortgage when purchasing a home. Instead of paying for upgrades out of pocket, eligible renovation costs are added to the purchase price and rolled into one mortgage payment.
Key benefits:
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Renovation costs are included in the mortgage
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As little as 5% down payment (subject to lender rules)
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One mortgage, one payment
This program is ideal for buyers who see value in a home that needs updates, repairs, or modernization.
How Much Can You Borrow for Renovations?
Renovations must improve the market value of the home. As a general guideline:
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Many lenders allow up to $40,000 in improvements
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In some cases, approvals may extend to $75,000–$100,000, depending on the lender and property
Each lender applies slightly different limits and approval criteria.
How Does a Purchase Plus Improvements Mortgage Work?
While house hunting, start noting any upgrades you’d like to make—such as kitchens, bathrooms, flooring, or adding a secondary suite.
Once you’ve found the right property:
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Bring a licensed contractor to the home to review the scope of work
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Obtain detailed written quotes
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Submit the accepted offer to purchase and contractor quotes to your mortgage broker
At closing, the lender advances the purchase price only to the seller. You then have a set period—typically 90 days—to complete the approved renovations.
Once the work is finished:
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The lender arranges an inspection
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After confirmation, the renovation funds are released to you or directly to the contractor
Example: Purchase Plus Improvements in BC
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Purchase price: $600,000
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Approved renovation budget: $35,000
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Total mortgage amount: $635,000
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Minimum down payment: 5% of $635,000
👉 This is a key advantage—the down payment is calculated on the total improved value, not just the original purchase price.
What Properties Are Eligible?
To qualify in British Columbia:
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Property must have no more than four units
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At least one unit must be owner-occupied
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Can be an existing home or new construction
This includes many townhomes, duplexes, and single-family homes across the Lower Mainland and Fraser Valley.
Using Purchase Plus Improvements to Build a Secondary Suite
One of the biggest advantages in BC is the ability to use this program to create a legal secondary suite.
Even better:
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Lenders may allow you to use future rental income from the suite
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This income can help you qualify for a higher mortgage amount
This strategy is especially popular in Surrey, Langley, and Coquitlam, where secondary suites are common.
When Are Renovation Funds Released?
Renovation funds are released after the work is completed and verified.
Important planning tip:
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Contractors are often paid before funds are released
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You may need temporary funds (savings, line of credit, credit cards)
Some lenders allow progressive draws, meaning funds can be released in stages as different parts of the renovation are completed. This provides greater cash-flow flexibility during longer projects.
How Long Do You Have to Complete Renovations?
In most cases, renovations must be completed within 90 days of mortgage funding. Extensions may be considered in certain situations, depending on the lender and scope of work.
Can You Do the Renovations Yourself?
Yes—with limitations.
If you’re completing the work yourself:
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Lenders will typically cover materials only
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Labour is not reimbursed
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Receipts are mandatory for all materials
This option works best for smaller or cosmetic upgrades.
What If You Don’t Complete the Renovations?
If approved renovations are not completed:
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The renovation portion of the mortgage is applied to the principal balance
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Your mortgage payment remains the same, as the loan was already finalized
This is why it’s important to only include renovations you are confident you’ll complete.
Step-by-Step: How to Get a Purchase Plus Improvements Mortgage in BC
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Get a mortgage pre-approval before house hunting
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Make an offer on a home and identify renovation needs
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Obtain detailed quotes from licensed contractors
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Your mortgage broker updates the approval to include renovation costs
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Close on the home and take possession
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Complete the approved renovations
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Lender verifies the work
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Renovation funds are released
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Enjoy your upgraded home
Is a Purchase Plus Improvements Mortgage Right for You?
In competitive BC markets, this program allows buyers to:
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Enter the market sooner
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Avoid bidding wars on fully renovated homes
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Customize their home to fit their lifestyle
Rima Zino Mortgages Inc. works with buyers across Vancouver, Surrey, Langley, Coquitlam, the Lower Mainland, and the Fraser Valley to structure Purchase Plus Improvements mortgages correctly from day one.