The maximum improvement funds allowed is $40,000 however in some cases an exception can be made for more.
The quote(s) needs to be submitted and approved by the lender and/or mortgage insurer (ie CMHC) during your financing condition period.
There is one ONE advance of the improvement funds and it is ONLY once ALL the work is complete. There are no exceptions to this.
The funds cannot be provided in multiple advances.
An appraiser needs to go by the property, at your expense, to confirm the work from the quote(s) was finished.
If you go over budget, you will not be given additional funds. The additional amount will be your responsibility.
Your real estate lawyer may have a cost to release the improvement funds to you once the work is complete.
If any work was done that was not on the quotes, you will not be given the funds for that work. For example, the quote was for new windows and you did flooring instead.
You are charged interest on the improvement funds from the date your mortgage advances.
You can learn more about the purchase plus improvements mortgage here.