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CMHC Purchase Plus Improvements Program
Canada Mortgage and Housing Corporation (CMHC) insured mortgage loans are available to cover the purchase price of a home as well as an amount to pay for immediate major renovations or other improvements that the purchaser may wish to make to the property. This option eliminates the need to obtain secondary financing after the purchase to pay for improvements. The home buyer obtains a single first mortgage, makes a single mortgage payment, and benefits from the first mortgage interest rates. To benefit from this program, contact Tara today!
The insured loan will be based on the lower of:
  • The purchase price plus the actual cost of improvements, or,
  • The 'as improved' market value. Prior to approval, CMHC will determine the market value of the property after renovations or improvements. The lending value will not exceed the market value of the property after the renovations or improvements.

Successful applicants must meet the following criteria:

  • A minimum of 5% down payment of the total cost (purchase price plus renovations or improvements).
  • Cost estimates for renovations or improvements.
  • Qualifications to obtain a CMHC-insured loan through an approved lender


Purchase Price $100,000
Renovations or Improvements Costs $25,000
Total Cost $125,000

Lending Value $125,000
Maximum Mortgage Allowable (95%) $118,750
Minimum Down Payment Required (5%) $6,250

Where the loan-to-value ratio is greater than 90%, the maximum house price in Toronto including the cost of improvements is $250,000. can make this dream a reality for many first-time home buyers. With strategic partnerships in the field of contracting and renovating as well as access to CMHC approved lenders, we can handle and coordinate your Purchase Plus Improvements project from start to finish.

Source: ©Toronto Real Estate Board (TREB). Re-Printed by permission on