Products

Purchase plus improvements

A program letting you borrow against the after-renovation value of the property at the time of purchase. Up to ~$40K of renos can be rolled in. Funds released by the lender after inspection confirms work is done.

Purchase plus improvements lets you finance renovations into the mortgage at purchase, based on the home's value after the work — so you avoid a separate high-interest loan for that dated kitchen or bathroom. You submit contractor quotes up front and the lender adds the amount to your approval.

The catch is cash flow: you (or your contractor) pay for the work first, and the lender releases the improvement funds only after an inspection confirms it's done. Plan for that gap, and keep renos within the lender's cap (commonly around 10% of value or ~$40K).

It's ideal for buyers eyeing a home with good bones that needs cosmetic updates — turning a fixer into your home at mortgage rates instead of credit-card rates.

Related on Mortgage Squad Advisors

More on Products

All terms →

A lender

A bank or monoline that prices its lowest rates and tightest underwriting against borrowers who fit prime credit, income, and property criteria. The big banks (RBC, TD, Scotia, BMO, CIBC, NB) and major monolines (MCAP, First National, MERIX) are A lenders.

B lender

An alternative lender that prices slightly higher than A lenders but flexes on credit history, income documentation, property condition, or self-employed earnings. Equitable, Home Trust, CMLS, and Manulife Bank are common B lenders.

Bridge financing

Short-term loan that lets you close on a new home before the sale of your existing one funds. Priced at prime + premium, secured against both properties, typically up to 90-120 days.

Closed mortgage

A mortgage that limits how much extra you can prepay each year and charges a penalty if you break the term early. Almost all standard Canadian mortgages are closed because the rates are materially lower than open.

Collateral charge mortgage

A mortgage registered against your property for more than the actual loan amount, letting you increase the limit later without re-registering. Common at TD and Scotia. Makes inter-lender switches harder mid-term.

Conventional mortgage

A mortgage with at least 20% down. No mortgage default insurance required. Pricing is typically higher than insured because the lender carries more of the credit risk.

Meet Maya

Canada’s 24/7 AI mortgage advisor.

Have a question right now? Maya answers instantly — in 50+ languages. Real humans on every file. Best-rate guarantee, or we pay you $500.

Instant answers
50+ languages
Instant payment math
Voice calls

Chat with Maya Call live Book a meeting with an advisor

Maya · AI advisor

Typing…