Canada Guaranty Mortgage Insurance Benefits

Mortgage Insurance Insights Newsletter

Products + Solutions

Purchase Advantage PlusTM
A Dream Home is Sometimes Only a Renovation Away!

Sometimes, finding your dream home means love at first sight. For others willing to put in a little effort, it means love with foresight. For the patient homebuyer, a more affordable home can quickly be transformed into a dream home through careful planning, thoughtful renovations and the right program to help finance the projects.

The Purchase Advantage Plus™ program is designed to assist borrowers who are purchasing a home and would like to make value-added improvements, all while including these costs within their first mortgage. With as little as five per cent down, the program offers Canada Guaranty-insured borrowers immediate access to additional funds to finance their approved, value-added home improvements.


Some of the most common renovations homebuyers implement to improve the condition, enjoyment or value of their home, include:

  • Kitchen: A complete renovation or updates made to enhance the quality of the finishes and materials (i.e., flooring, counter tops, cabinetry, etc.).
  • Bathroom: A complete renovation or the addition of another bathroom in the home.
  • Painting – Interior and/or Exterior of Home: A new coat of paint in a universally appealing colour palette goes a long way to refreshing and updating the look of a home.
  • Replacing the Roof: Installing a new roof not only adds curb appeal through more attractive and durable shingles, it also ensures potential issues are eliminated, such as unnecessary heat loss or leakage.


Improvements not eligible under the Purchase Advantage Plus program, include:

  • Appliances
  • Decorative items (i.e., light fixtures, furniture, window coverings, etc.)
  • Hot tubs
  • Above ground pools
  • Outbuildings (i.e., secondary garage, workshop, shed, etc.)

Unsure whether an upgrade qualifies under this product? Contact your regional Account Executive or speak directly with an Underwriter at 1.877.244.8422 to discuss the eligibility of a proposed renovation.


Below is a brief overview of how the program works, from application to approval:

  1. The homebuyer makes an offer on a property.
  2. A quote is established for the renovation work to be done.

    The quote should list following information:

    • Name, address and contact information of contractor
    • Details of the work to be done and materials being used
    • Total cost and terms of payment
    • Work schedule including start and completion date
  3. The borrower provides the quote(s) to the lender, which are then submitted together with the application to Canada Guaranty for review.
  4. If the improvements are over $40,000 or total over 20% of the purchase price, a full appraisal will be ordered.
  5. Assuming the value is substantiated and all underwriting requirements are met, the deal is approved, conditions are met and the file is funded.
  6. The Lender holds back the approved amount of improvements. When the renovations are complete, the borrower provides confirmation to the lender.
  7. Once confirmed, the renovation holdback is released by the lender to the borrower (to repay the contractor for the completed renovations).


To review all requirements and qualifying guidelines, please visit the Canada Guaranty website to download the Purchase Advantage Plus product sheet. Should you have any questions or wish to discuss your client’s unique circumstances, please do not hesitate to contact your dedicated Account Executive or speak directly with a member of our National Underwriting Team at: 1.877.244.8422

NOTE: The Lender’s internal guidelines always take precedence and must be adhered to prior to review by Canada Guaranty.

Copyright © 2010 - 2020 Canada Guaranty Mortgage Insurance Company. All Rights Reserved. All mortgage insurance is underwritten by Canada Guaranty Mortgage Insurance Company.

Terms of Use | Privacy Policy | Portfolio Metrics