Buy the Home, Build the Suite, Create More Value with Purchase Plus Improvements

What if the home you want is close, but not quite perfect? Purchase Plus Improvements can help.

Buy the home. Build the suite. Create more value. A Purchase Plus Improvements mortgage may help you purchase a home with potential, include eligible renovation costs, and create future rental income through a legal suite.

Maybe the basement is unfinished. Maybe the home needs updates. Maybe there is an opportunity to add a legal rental suite and create rental income.

For many buyers, the right home may not be perfect on day one. But that does not always mean it should be crossed off the list.

With a Purchase Plus Improvements mortgage, you may be able to buy a home and include eligible renovation costs in the mortgage. This can help reduce the need to pay for the full renovation out of pocket right away.

If the improvements include adding a legal rental suite, the projected rental income may also help support your mortgage qualification, depending on the lender, insurer, property, and application details.

How This Can Help

Instead of only looking at what a home is today, this strategy looks at what the home could become after improvements.

You may be able to:

Buy a home that needs work Include eligible renovation costs in the mortgage Build or finish a legal basement suite Use projected rental income to help with qualification Increase the value and function of the home Create potential monthly rental income Build a stronger long-term property

A Simple Example

Here is a simplified example based on household income of $120,000 and projected suite rent of $1,500 per month.

Scenario	Estimated Maximum Purchase Price
Without rental suite income	About $515,000
With projected suite income	About $633,000
Potential increase in buying power	About $118,000

This example shows how projected rental income from a legal suite may help increase buying power.

These numbers are for illustration only. Actual approval depends on income, credit, debts, down payment, property details, renovation scope, lender guidelines, insurer rules, and qualifying rates.

Why This Matters

A finished legal suite can do more than make a home look better. It may also improve the financial potential of the property.

You May Qualify for More

Projected rental income may help increase borrowing power when it meets lender and insurer requirements.

You May Reduce Monthly Pressure

Rental income can help offset monthly housing costs, which may make the home more manageable over time.

You May Build Equity

You are not just buying the home as it sits today. You may be improving it, increasing its functionality, and potentially increasing its value.

You May Create Long-Term Income

A legal suite can turn part of your home into an income-producing space, which may support your long-term financial goals.

What Types of Improvements May Work?

Eligible improvements may include:

Basement development Adding a legal rental suite Kitchen or bathroom updates Flooring and windows Furnace or air conditioning upgrades Roof repairs or replacement Electrical updates Deck or patio work Septic upgrades

The key is that the improvements should add real value to the property and meet lender requirements.

Is This Only for Investors?

No. This can be a great option for buyers who want to live in the home and rent out part of it.

For example, you may buy a house, live upstairs, and rent out the basement suite once it is legally completed.

That rental income may help make the home more affordable now while creating long-term benefits for the future.

The Big Picture

Instead of only asking:

“Can I afford this home as it sits today?”

It may be worth asking:

“What could this home become after improvements?”

A Purchase Plus Improvements mortgage may help you buy the home, complete the renovation, and create a property that is more functional, more valuable, and potentially income-producing.

Thinking About Buying a Home with Suite Potential?

Let’s look at the numbers before you write an offer.

A quick mortgage review can help compare what you may qualify for with and without projected rental income, and whether a Purchase Plus Improvements strategy could fit your situation.