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.

Amortization

Maximum 25 years; or
Maximum 30-year amortization for owner-occupied homes if LTV > 80% and the borrower is either: (i) a first-time homebuyer or (ii) purchasing a newly constructed home.

Loan-to-Value Criteria

95% LTV for Purchase: 1-2 units
- Purchase Price ≤ $500,000: Minimum 5% down payment required.
- Purchase Price > $500,000: 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 if LTV < 80%; or
- $1,500,000 if LTV > 80%.
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	> 25 Year Amort. Single Premium	> 25 Year Amort. 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%	3.00%	6.40%
85.01% – 90%	3.10%	6.25%	3.30%	6.45%
90.01% – 95%	4.00%	6.30%	4.20%	6.50%
Flex 95 Advantage™	4.50%	6.60%	4.70%	6.80%

NOTE: Mortgage insurance premiums are non-refundable.