Purchase Plus Improvements: The Smart Way to Buy and Renovate Your Home in Alberta

Posted On Nov 06, 2025

🏡 Purchase Plus Improvements: The Smart Way to Buy and Renovate Your Home in Alberta

By Carollyne “Care” Fried — Mortgage Broker, The Mortgage Centre – We Connect

If you’ve ever fallen in love with a home that’s almost perfect you know, the one with the great bones but a kitchen straight out of 1987 tere’s a program designed just for you. It’s called Purchase Plus Improvements (or “PPI”), and it’s one of the most powerful yet misunderstood mortgage tools available in Canada.

Let’s break it down in plain language  plus a few insider tips from my experience helping Alberta clients make the most of this program.

💡 What is Purchase Plus Improvements (PPI)?

The Purchase Plus Improvements program lets you add renovation costs directly into your mortgage when buying a home.

It’s perfect for buyers who find a solid home that needs a few updates like flooring, paint, a bathroom remodel, or even a new kitchen. Instead of using credit cards or lines of credit later, you can finance those improvements upfront, at mortgage rates.

Example:
You buy a home for $400,000 and want to do $40,000 in renovations.
With PPI, you can structure your mortgage based on a total value of $440,000 (subject to lender approval and appraisal).

🛠️ How It Works — Step-by-Step

1. Find the home you want to buy.

2. Get written quotes for the renovations before possession. These must be from qualified contractors or trades (some lenders allow DIY work for small cosmetic updates ask your broker!).

3. Your broker submits the quotes to the lender as part of the mortgage approval.

4. The lender approves the mortgage amount based on the “improved value” (purchase price + approved renovations).

5. You complete the renovations after possession.

6. Once the work is done, the lender verifies completion (usually with photos, receipts, or an inspector).

7. The improvement funds are released to you or your lawyer — reimbursing you for the renovations.

💰 Tips from a Broker (a.k.a. Things You Don’t Learn on Google)

✅ Plan your quotes early.

• Have contractors provide detailed estimates before your financing condition date. Vague “ballpark” quotes won’t cut it  lenders need real numbers.

✅ Stick to improvements that add value.

• Think: kitchens, bathrooms, flooring, paint, roofing, energy efficiency upgrades.

• Avoid: luxury add-ons (hot tubs, pools, landscaping)  these are often not eligible.

✅ Budget for upfront costs.

• You’ll usually need to pay for the renovations upfront, then get reimbursed when the work is complete. Make sure you have the cash flow or savings to handle that temporarily.

✅ Don’t change your renovation plan mid-way.

• Lenders approve your mortgage based on the original quotes. Major changes or new contractors can delay reimbursement.

✅ Work with a broker who understands the fine print.

• Every lender’s version of this program is slightly different. Some allow $20,000 max in renos; others allow up to 10%–20% of the home’s value.

• I match clients with the lender that best fits their specific project and budget.

⚠️ Common Pitfalls to Watch For

🚫 DIY jobs without receipts.

• Unless it’s minor cosmetic work, lenders typically won’t reimburse “sweat equity.”

🚫 Skipping final inspection.

• No proof = no release of funds. Always complete the lender’s verification step.

🚫 Over-improving.

• Keep renovations in line with the neighbourhood value. Spending $80K on upgrades in a $350K area rarely pays off when it comes to appraisal.

💬 Why I Love This Program for Alberta Buyers

The Purchase Plus Improvements program is especially powerful in Alberta’s market where older homes in great areas can be priced well below new builds.

You can buy that character home in Stony Plain, Spruce Grove, or Medicine Hat, and still have the updated kitchen, flooring, or ensuite you’ve been dreaming about without draining your savings later.

🏁 Final Thought

If you’re house-hunting and finding “almost perfect” homes, don’t walk away just because they need a facelift. With the right plan and the right broker, Purchase Plus Improvements can turn potential into perfect.

Want to know if this program could work for you?
Reach out and let’s go over your options I’ll help you figure out how much you can include, what renovations are eligible, and how to structure it properly from day one.


Let’s start the conversation and see what’s possible for your next chapter.

Care