Best Homebuying Hack of 2025: The P.P.I. Mortgage & Rental Suites

Investment Tips, Real Estate Tips, Tips and Insights

19.03.25

Author

Portfolio Realty Group Edited By Chris Somerfield

Have you ever considered converting your basement into a cozy rental suite to help pay down your mortgage faster? It’s a clever idea that could turn an underused space into a steady source of income, easing your financial load along the way. Many first-time buyers have explored how a Purchase Plus Improvements (PPI) Mortgage can make that vision a reality, and it can simplify your home-ownership journey as well!

What Is a Purchase Plus Improvements Mortgage?

A Purchase Plus Improvements Mortgage is a practical financing option that lets you bundle the cost of home upgrades (such as building a basement suite) directly into your mortgage. No need for separate loans or added stress later on. It’s all rolled into one convenient package.

Here’s where it gets exciting: this type of mortgage allows you to borrow up to $100,000 to create a fully self-contained basement suite that you can rent out for extra cash flow. Even better, the projected rental income from that suite can be used to strengthen your mortgage application from day one. For example, if your finished basement could generate $1,500 a month in rent, that amount can factor that income into your approval process, increasing your chances of qualifying!

How It Works

Here’s a straightforward, 3-step breakdown of the process:

Step 1: Map Out Your Renovation Plans

Start by planning your ideal basement suite. What will it look like? Consider the layout, key features, and how it will function as a standalone living space. A clear plan sets the foundation for success.

Step 2: Obtain a Contractor Quote

Next, bring in a professional contractor to assess your vision. They’ll provide a detailed written quote outlining the scope of work, timeline, and total cost. To keep things moving smoothly, aim to complete the renovations within 90 to 180 days of breaking ground. Solid planning here is key, as lenders would like to see a viable renovation project to fund with a timeline that is reasonable.

Step 3: Lock in Your Financing

Once your mortgage is approved, the renovation funds are typically disbursed in three stages. This phased approach lets you oversee the project and pay your contractor as milestones are met, keeping everything on track.

Where To Start?

Navigating the Purchase Plus Improvements Mortgage process can feel overwhelming, but having the right team in your corner makes all the difference. You need experts who are knowledgeable, trustworthy, and committed to helping you achieve your homeownership and investment goals.

That’s why we trust Eric Sabatini from The Mortgage Group to guide our clients through the financing process. With years of experience and a deep understanding of mortgage solutions, Eric ensures that buyers like you get the best advice and support every step of the way.

Ready to explore your options? Get in touch with Eric today:

📞 1-888-874-6140 or

📲 905-401-2552
📧 [email protected]
🌐 www.mymortgageniagara.com