How to Purchase your Fixer Upper with Dan Welyk, Calgary Realtor®

If you have been searching for a home, but just can't seem to find one that you absolutely love then a fixer upper could be exactly what you didn't know you were looking for. In today's post Dan Welyk, Calgary Realtor® with Find New Digs shares how to roll renovation costs into your mortgage.

What is a purchase plus improvement mortgage?

According to Dan, you have the ability to borrow up to 10% of the purchase value of the property from your lender as long as the renovations increase the value of the property.

What improvements add value to my property?

As a rule, any remedies that add longevity to your property add value. A great example of adding value to your property would be updating the roofing to protect the integrity of your roof for another 20 years. Other valuable remedies are heating and mechanical updates, window and door replacement, kitchen and bathroom renovations, and flooring updates.

Can anyone get a purchase plus improvement mortgage?

Anyone can get a purchase plus improvement mortgage, but as Dan says "you need to qualify for the full value of the mortgage including the additional renovation".

How much will my lender give me?

Depending on the lender, typically the maximum you can borrow is up to $40,000 but there are lenders who will do more.

What's next once my mortgage is approved?

Once you have found a home that requires these renovations, you will need to find and receive written quotes from contractors to complete the work which you will need to provide your lender.

Do I need to give the Seller's notice about my financing conditions?

It is very important the seller understands you are using the purchase plus improvements program so your Realtor® can coordinate contractors to view the home. Blindsiding sellers with extra time for contractors coming to see the home is not wise. You will also most likely going to need a little extra time for conditions to allow for these quotes to be completed.

What happens once I take possession?

Once you have taken possession, the funds for your renovations will be held in trust with your lawyer. You then can begin work and have 90 days to have the work complete. This can be extended depending on the lender and circumstances.

Who pays for the renovation?

Dan says, "You as the buyer pays for the up front cost of the renovations unless you have a contractor willing to give you terms for the work completed knowing the Purchase Plus Improvements program. If you do not have the cash on hand to get the work completed, you might be able to get a personal loan or line of credit depending on the lender".

I've just completed my renovations- what's next?

Now you've advised the lender all the work is complete, they will send out a property appraiser to confirm work has been finished. They then advise your lawyer to release the additional funds which then is either paid to you, the contractors or your line of credit.

Congratulations! Now that you have successfully completed your renovations you have instantly added value to your property!

Dan Welyk is a full time Realtor® in Calgary who is all about educating his clients so they fully understand the entire home buying and selling process. This way, they can confidently make informed decisions from start to finish.

To contact Dan or for more great information visit him online at

#Mortgage #PurchasePlusImprovement #DanWelyk #Renovations #FixerUpper #CalgaryRealEstate


Hey There! I am Kate, creator of this  Blog and Owner of 3Qi Design Inc. Welcome to my world! To say I am obsessed with interior design would be a little understated. I live breathe and crave this amazingly fun and creative profession. I started this blog to share with you all the ideas, projects, inspirations, that I have and hope you can share in all I love. Take your time, peruse around, and lets get lost together in all things design!

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