Yes you can include improvements into your mortgage when you buy your house. There are certain conditions that must be met in order to qualify for this.
Purchase plus improvement can be financed with 10% and even as little as 5% down. Canada Mortgage and Housing Corporation (CMHC), Genworth and Canada Guaranty are available to insure a mortgage for the purchase price of a home plus an amount to pay for immediate improvements that the purchaser would like to make. This enables you to finance renovations or improvements without having to establish separate financing.
If the improvements are structural in nature, the mortgage loan insurance premium is increased by one half of one percent (.5%).