Spring into Renovations: How to Finance Home Updates

Spring has arrived in British Columbia, and with it comes the perfect time to refresh and upgrade your home. Whether it’s replacing an aging roof, updating that 90s kitchen, or finishing the basement, many homeowners are eager to tackle renovations once the snow melts and the sun returns.

But here’s the big question: How do you pay for it all?

If you’re buying a home, or even refinancing, a Purchase Plus Improvements mortgage could be the perfect solution to roll renovation costs into your mortgage from day one.

 What is a purchase plus improvements mortgage?

A Purchase Plus Improvements (PPI) mortgage enables homebuyers to borrow additional funds, in addition to the purchase price, to cover eligible home renovations. Instead of financing updates with high-interest credit cards or lines of credit, you can include renovation costs in your mortgage at today’s interest rates.

This program is available through CMHC, Sagen (formerly Genworth), and Canada Guaranty, and is supported by most major lenders.

Spring/Summer is the best time for renovations.

Milder weather means easier scheduling for contractors and fewer weather-related delays. Longer days allow for extended work hours and faster project completion.Plus, spring real estate listings often include fixer-uppers (use PPI to make them shine).

 The step-by-step on how it works.

1. Get pre-approved & then find a home.
   Work with a mortgage broker, like Mortgage Okanagan, to get approved for both the home purchase and estimated renovation costs.
2. Get renovation quotes upfront.
   Before closing, you’ll need quotes from licensed contractors detailing the scope and cost of the work.
3. Approval and appraisal.
   The lender will assess the value of the home after renovations. This determines how much additional financing can be added.
4. Close on the home.
   On closing day, the funds for the renovations are held in trust by your lawyer or lender, not released until work is complete.
5. Complete the renovations.
   Typically within 90–120 days of possession. Once done, the lender confirms the work is complete and releases the funds to reimburse you or your contractor.

What renovations can be included in a PPI? 

Do all renovations count for a purchase plus improvements mortgage? Here are some examples of what can be done: 

• New windows and doors (energy-efficient upgrades)
• Kitchen and bathroom updates
• Basement finishing
• Flooring replacement
• Roof or siding repair
• Adding a deck or fence (some lenders allow this!)

Tips for homebuyers.

Stick to the budget: Lenders generally allow improvement costs of up to 10%–20% of the home’s purchase price. Plan your timeline: Renovations must be completed shortly after closing. Get clear quotes: Vague or DIY estimates may not be accepted by lenders. Talk to a broker early: Each lender has specific rules… work with a mortgage broker who understands the ins and outs.

Ready to renovate this spring?

A Purchase Plus Improvements mortgage can be a powerful tool to help you turn a “maybe” property into your dream home, without waiting years to save up for renovations.

As a mortgage broker here in BC, I can walk you through the process and help you access the right lenders, rates, and renovation strategy that fits your goals.

Let’s make your dream home a reality this spring. Give me a call at 250-826-3111, apply on my website or contact me through my online contact form to start the process today.