Purchase Advantage Plus

Home Improvement / New Construction

Purchase Advantage Plus™

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.

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Transaction Types

  • Purchase transactions.
  • Portable eligible.
  • Single or multiple advances are permitted and may be managed by Lenders. To be eligible for Canada Guaranty managed draws, the improvement amount should be greater than 10% of the as-improved value.


  • 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 plus 2%, or 5.25%.

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.

Borrower Qualifications

  • Gifted down payment from a close 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. Examples of acceptable documentation include: a third-party report from a qualified professional, paid invoices, or photos confirming improvements completed.

Applicable Premiums

Loan-to-Value Ratio Single Premium Top-Up Premium
≤ 65% 0.60% 0.60%
65.01%–75% 1.70% 5.90%
75.01%–80% 2.40% 6.05%
80.01%–85% 2.80% 6.20%
85.01%–90% 3.10% 6.25%
90.01%–95% 4.00% 6.30%
Flex 95 Advantage™ 4.50% 6.60%
NOTE: Mortgage Insurance premiums are non-refundable.
Last Updated: 02/2024