Purchase Plus Improvements: How Buyers Can Afford the Home They Really Want
Our team has facilitated many purchase-plus improvements. Read on for our experiences!
The Real Estate Market is tough, yet again for 2026 Winnipeg Homebuyers. And we are sure that you have noticed, what is super pretty and updated sells in the most aggressive bidding wars for some of the highest premiums.
If you’ve ever toured a home and thought “This could be great… if only the kitchen was updated” or “I love the location, but the bathroom needs work,” you’re not alone.
This is exactly where a Purchase Plus Improvements mortgage can be a game-changer, especially for buyers who want to get into the right neighbourhood but don’t want (or can’t afford) to pay renovation costs upfront.
What Is Purchase Plus Improvements?
Purchase Plus Improvements (often called PPI) is a mortgage option that allows you to roll the cost of certain renovations directly into your mortgage, rather than paying for them out of pocket after possession.
In simple terms:
You buy the home
You plan specific improvements
The lender advances funds to cover those improvements
You repay it all as part of your mortgage
It’s most commonly used by:
First-time home buyers
Buyers stretching to get into a better location
Buyers who are able to see potential
What Kind of Improvements Are Allowed?
Not all renovations qualify, and each lender has slightly different rules, but generally speaking, improvements must be permanent and add value to the home. However, if being used for foundation repair, be wary. We have found lenders to be more reluctant in this regard.
Common examples include:
Kitchen or bathroom updates
Flooring replacement
Painting (when part of a larger renovation)
Furnace, electrical, or plumbing upgrades
Finishing a basement
Roof or window replacements
Cosmetic items like furniture, décor, or appliances that aren’t built-in typically don’t qualify.
This is one area where planning matters. Choosing the right improvements upfront can make or break approval.
How the Process Usually Works
This is where people often feel intimidated, but the process is actually quite structured.
Here’s the typical flow:
You make an offer to purchase the home
You obtain quotes for the planned improvements
The lender approves the purchase price plus the renovation amount
You complete the purchase
Renovations are completed (usually within a set timeline)
Funds are released after work is verified
Important note: in most cases, renovation funds are released after the work is completed, meaning buyers often need short-term cash or financing to bridge that gap.
Keep reading though, a new lender has entered the scene with staged funding releases… a complete game changer!
Why This Can Be a Smart Strategy
In Winnipeg especially, this approach can open doors that buyers didn’t think were possible.
Instead of competing for fully renovated homes (often at premium prices), buyers can:
Purchase a home with solid bones
Improve it gradually or strategically
Build equity faster
Make the home suit their lifestyle
We often see this work well for homes that are structurally sound but cosmetically dated - the kind of listings many buyers scroll past too quickly.
What Buyers Need to Be Careful About
Purchase Plus Improvements isn’t for every situation, and it’s not something we recommend casually.
Things to consider:
Renovation timelines are strict
Quotes must be detailed and accurate
Changes mid-process can be complicated
Over-improving for the neighbourhood can limit future value
This is why guidance matters. Pairing the right property with the right improvements is key. Always talk to your Realtor about market trends, what is selling in the area, how different improvements impact value, and projects with the best ROI.
How We Help Buyers Navigate This
When clients ask about Purchase Plus Improvements, our role isn’t just to say “yes, that’s an option.”
We help by:
Identifying homes that make sense for this strategy
Flagging improvements that add value vs. risk
Coordinating with lenders and mortgage brokers early
Setting realistic expectations around timelines and cash flow
Sometimes the best advice is also knowing when not to use this approach, and we’ll always be honest about that.
One of our trusted lenders recently announced they are expanding their purchase plus improvements program.
Here is an excerpt from what he had to say:
This allows your clients to take a house they like and turn it into a home they’ll love.
The highlights are:
will allow for improvements of up to $150,000
will process multiple draws (you can pull money out as you go)
renovation list includes BUT IT NOT LIMITED TO:
finishing a basement
removing knob and tub wiring
adding an additional suite
adding a deck
Purchase Plus Improvements: Buyer FAQs
How much can I add for renovations?
This depends on the lender, but typically buyers can add up to 10–20% of the purchase price for approved improvements. One lender now advertises they will release up to $150,000. Your mortgage professional will confirm the exact limit based on the lender, the property, and your financial profile.
Do I need quotes before making an offer?
In most cases, yes. Lenders usually require written quotes for the planned improvements as part of the approval process. This is why we often recommend lining up contractors early. Even before you’ve found “the one.”
When do I receive the renovation funds?
This is an important one. Renovation funds are usually released after the work is completed and verified, not upfront. That means buyers often need:
savings,
a line of credit, or
short-term financing
to cover the renovation costs initially. We always talk this through early so there are no surprises. However, a new lender has entered the market making things easier for Winnipeg Home Buyers. Now, there is an option that will allow you to process multiple draws.
How long do I have to complete the renovations?
Most lenders require the work to be completed within a specific timeframe, often 90–180 days after possession. Extensions aren’t guaranteed, so planning realistic timelines is key. Again, another important reason to get your contractors sorted early on.
Can I change the renovation plan after approval?
Minor changes may be possible, but significant changes can be difficult and sometimes aren’t allowed without reapproval. This is why we encourage buyers to be thoughtful and realistic when choosing improvements upfront.
What types of renovations are not allowed?
Generally, lenders won’t approve:
furniture or décor
non-permanent fixtures
luxury upgrades that don’t add clear value
DIY work without proper documentation
Foundation repair (although not always)
Improvements need to be permanent and contribute to the home’s value.
Does Purchase Plus Improvements increase my mortgage payment?
Yes. The renovation costs are added to your mortgage. That said, many buyers find the increase manageable, especially when compared to the cost of buying a fully renovated home upfront.
Is this a good option for first-time buyers in Winnipeg?
It can be… but it’s not always the right fit. Purchase Plus Improvements works best for first-time buyers who:
are comfortable managing a renovation
have access to short-term funds
want to build equity intentionally
We’ll always help you assess whether this strategy fits your comfort level, not just your budget.
Can this be used for major structural work?
Sometimes. But this is where things get more lender-specific. Structural, electrical, plumbing, or heating upgrades often require additional approvals, inspections, or engineering reports. These situations need careful coordination early in the process.
Is Purchase Plus Improvements always the best option?
Not always. Every situation is different. To be honest, we probably only recommend this product to about 5-10% of our clients as an option. In some cases, it makes more sense to:
negotiate price instead
budget for renovations after purchase
wait for a different property
Our job is to help you evaluate all options. Not just the most complex one.
Will there still be bidding wars on homes that need work?
Quite possibly, but not always. Some of the most aggressive bidding wars we see on homes that need updates are what we often call the “granny special.” Think carpets straight out of the ’70s that somehow look brand new, freshly oiled mahogany or oak trim, and an avocado-green fridge that’s still humming along perfectly. These homes often do sell in bidding wars because they’re clean, well cared for, and completely livable all while offering a great canvas to update over time. We can usually identify which homes are likely to be competitive, and just as importantly, which ones aren’t. We’ll always provide insight on how to win in a bidding war, how to strengthen an offer, and how not to overbid unnecessarily. This is all part of our consultative approach: helping you compete thoughtfully, not emotionally.
Final Thoughts
Purchase Plus Improvements can be an incredible tool when used thoughtfully. It allows buyers to see beyond outdated finishes and focus on what truly matters: location, layout, and long-term potential.
If you’re curious whether this strategy could work for you, or you’re wondering which homes might be good candidates, we’re always happy to talk it through.
Sometimes the right home just needs a little vision (and the right financing).
Questions or thoughts? We’d love to hear them.
Email us anytime at hello@queenteam.ca.
Jennifer Queen
Phone: (204) 797-7945
Email: Jennifer@QueenTeam.ca