Purchase Plus Improvements: Buy Your Home Today and Renovate It Tomorrow
If you’ve found the perfect home but wish it had a finished basement, updated kitchen, or modern bathrooms, Scotiabank’s Purchase Plus Improvements program could be exactly what you need.
This clever mortgage solution lets qualified buyers finance both the purchase and cosmetic upgrades — all in one loan — using the “as-improved” value of the property to determine how much you can borrow. No need to wait until you’ve saved extra cash or taken out a separate home equity loan later.
Why Homebuyers Love This Program
- Make cosmetic improvements within 120 days of taking possession
- Finance upgrades like: basement finishing, bathroom fixtures, kitchen cabinets & counters, flooring, new windows, or even a detached garage
- The lender uses the higher “as-improved” value (instead of just the purchase price) when calculating your maximum loan amount
- Maximum 2 advances total (purchase + improvements), all completed within 120 days of the first advance
Who Qualifies? Eligible Properties
- Uninsured Mortgages: Owner-occupied properties (max 2 units), Rental Properties, Scotia Secondary Home Financing Program, Type A & B properties (max 1 unit)
- Insured Mortgages (CMHC, Sagen, or Canada Guaranty): Owner-occupied properties (max 4 units), Rental properties (max 80% LTV, one unit must be owner-occupied), Scotia Secondary Home Financing Program, Type A properties (max 4 units), Type B properties (max 1 unit)
Maximum Loan-to-Value (LTV) Ratios
- Uninsured (1–2 units): 80% LTV
- Insured (1–2 units): 95% LTV
- Insured (3–4 units): 90% LTV
Important notes: Down payment is calculated on the as-improved value. Scotia Total Equity Plan (STEP) global limit remains at 80% of lending value.
Maximum Value of Improvements Allowed
- Uninsured & Sagen/CG Insured: Improvements cannot exceed 20% of the “as-is” purchase price
- CMHC Insured: Improvements cannot exceed 10% of the “as-improved” lending value
What You’ll Need to Apply
- Official cost estimates from contractors, supported by plans or diagrams
- Building plans and sketches
- Detailed breakdown of construction costs with copies of the building contract or subcontractor estimates
- For uninsured deals: A full appraisal confirming both “as-is” and “as-complete” values
An inspection is required before the final holdback is released to confirm the work was completed.
What’s NOT Covered
- Structural repairs, additions, or fixes needed to make the home livable
- Scotiabank StartRight® for temporary/permanent residents
- The Long and Short® Mortgage
- Refinances
Why This Program Makes Sense in Today’s Market
In a competitive housing market like Greater Vancouver and Burnaby, many buyers are forced to settle for a home that needs work. With Purchase Plus Improvements, you can submit a stronger offer knowing you’ll have the financing ready to bring the property up to your standards — quickly and seamlessly.
Ready to Learn More?
I’m Pouya, a mortgage advisor based in Vancouver, British Columbia. I work regularly with bank’s Purchase Plus Improvements program and would be happy to review your situation at no cost or obligation.
Contact me today to determine exactly how much you could qualify for using the “as-improved” value and make your dream home a reality.
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