Home Purchase Plus Improvements


Types of Repairs

Every homebuyer has a list of things their new home “must have”. For some, it’s a pool. For others, it’s a home office or extra bedroom. Whatever the case, the home of your dreams is out there, it just might need some work.

If this is the case for you, a mortgage plus improvements solution in Kingston is just what you need to transform your new home into your dream home.  If the property you would like to purchase could use some renovations or repairs, this type of mortgage allows you to do just that. For as little as 5% down, you could be eligible to receive a mortgage plus up to 20% of the home’s value available in additional funds to cover the cost of the renovations.

A purchase plus improvements mortgage is ideal for people that want to add a little TLC to their home for renovations or plan to convert a single-family home into a multi-unit house. 

purchase plus improvement mortgage in Kingston, top mortgage agent in Kingston, Leo Ragusa, purchase plus improvements mortgage






Renovations must be completed by a licensed contractor and or someone who keeps a detailed portfolio of their work online. The total amount available for renovations can be up to 20% of the properties existing value or $40,000.


Purchase transactions up to 95% or refinances up to 80% LTV

Extended amortizations up to 30 years

Eligible Properties

  • Maximum 4 units with at least 1 unit as the principal residence
  • New construction only if the property has a tarion warranty.
  • Existing properties located in markets with demonstrated ongoing re-sale demand.
  • Estimated remaining economic life of the property should be a minimum of 25 years


The Process


Go house shopping and fall in love with the home of your dreams that needs that little touch a have a good idea of what renovations need to be done and a rough idea of how much it will cost.


Leo Ragusa, your licensed mortgage broker in Kingston, will get you a quick approval based on the existing purchase price. You then go and get firm price quotes from contractors for all the work that needs to be done. Make sure the quotes are detailed and specifically state the work that is to be complete. Handwritten quotes will not be accepted.


Once Leo receives all the quotes, he will then have your mortgage approval revised to include the price of renovations.


On closing, you take possession as per norms of your new home and the renovations can start. Please, not that all work needs to be done by a contractor and proper permits need to be used.


When the work is completed the lender will require proof by way of letter or appraisal in order to instruct the lawyer to release funds.


Funds are released from the lawyer to you with a 10% holdback for 45 days to make sure that there are no outstanding bills/permits that need to be paid. After that, you will get the rest of the funds.


Kingston's Mortgage with Improvement Expert

If you’re looking to purchase a new home and turn it into your dream home or a rental property, I would be happy to assist you. Over the years Leo has assisted many families and entrepreneurs purchase new properties and secure the additional funds they need to complete their desired renovations.

From helping you determine if your desired property is eligible for a purchase plus improvements mortgage, to securing you lending with lowest mortgage rates in Kingston, Leo will be by your side every step of the way.

The Benefits of a Purchase Plus Improvements Mortgage

Many people are often fearful of purchasing a property that needs some work. Instead they choose to purchase a newer home that does not require renovations. What many fail to realize though is that the home requiring renovations offers several benefits.

In most cases, the cost of the mortgage plus improvements in Kingston will be less than the mortgage required to purchase a new home that requires no renovations. In addition to these savings, you will also have the ability to make money. Once the renovations are completed, the value of your home is likely to increase. This means that down the road when you’re ready to move again, your home will be worth more than when you initially purchased it.

Frequently Asked Questions

By using this program, you can finance your home purchase and renovation costs together, simplifying the financing process. You can also make necessary improvements to your new home immediately, without having to save up for renovations separately. Renovations can potentially increase the value of your home, allowing you to build equity from the start. 

Yes, mortgage lenders in Canada generally require you to provide detailed quotes or estimates from licensed contractors outlining the scope of work and associated costs. Since this mortgage solution is different from traditional mortgage products, it’s best to work with an experienced mortgage professional in Kingston.

Each lender may have its own eligibility requirements, but generally, you need to meet standard mortgage qualification criteria and provide supporting documentation for the proposed renovations. This makes it very important to hire a licensed mortgage agent near you, who can advise you on how to put ahead a strong case.


Lenders typically have guidelines regarding the types of renovations eligible for financing. Generally, they should add value to the property, be permanent in nature, and comply with building codes and regulations.

In most cases, mortgage lenders in Canada require the renovations to be carried out by licensed contractors. DIY renovations are generally not allowed.

If the actual renovation costs exceed the estimated amount, you may need to cover the difference using your own funds. It’s essential to plan and budget carefully to avoid unexpected expenses. For more information, reach out to Kingston’s top mortgage agent, Leo Ragusa.