Home Improvement / New Construction


The Purchase Advantage Plus program is designed to assist borrowers who are purchasing and want to make value-added improvements to their home, while including these costs within their first mortgage.



Transaction Types

  • Purchase transactions.
  • Portable eligible.



  • Maximum 25 years.


Loan-to-Value Criteria

  • 95% LTV for Purchase: 1-2 units
    • Purchase Price ≤ $500,000: Minimum 5% down payment required.
    • Purchase Price > $500,000 and < $1,000,000: Minimum 5% down payment required on the first $500,000 of the purchase price, plus an additional 10% down payment required on the portion of the purchase price above $500,000.]
  • 90% LTV for Purchase: 3–4 units
Maximum LTV is subject to adjustments based on local housing market conditions.


Interest Rate Types

  • Fixed, standard variable, capped variable and adjustable rate mortgages permitted.
  • Borrower(s) must qualify at an interest rate that is the greater of the contract mortgage rate or the five-year benchmark rate.


Property Types

  • Maximum property value must be less than $1,000,000.
  • Maximum 4 units, with 1 unit owner-occupied.


Lending Value

  • Lending value is based on the lesser of the improved property value or the purchase price, plus direct costs associated with the improvements.
  • Full appraisal required for improvements exceeding 20% of “as is” value or $40,000.


Borrower Qualifications

  • Gifted down payment from immediate family member is acceptable.
  • Borrower must provide the lender with quotes for the work to be completed.
  • Standard underwriting guidelines apply.
  • Maximum debt service ratios: GDS 39% / TDS 44%


Documentation Requirements

  • Standard documentation.
  • Lender is responsible for managing holdbacks.
  • Lender to confirm improvements are completed.



Applicable Premiums

Loan-to-Value Ratio Single Premium Top-Up Premium
≤ 65%0.60%0.60%
Flex 95 Advantage™4.50%6.60%
NOTE: Mortgage Insurance premiums are non-refundable.


Last Updated: 03/17/2017

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