# How do PPI fund releases work technicaly?

> Lenders release PPI funds only after work completion is verified by an appraiser or inspector.

Category: Financing
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/financing/how-do-ppi-fund-releases-work-technicaly

## Answer
Lenders release PPI funds only after work completion is verified by an appraiser or inspector. The funds are initially part of the 'Total Value' but are held in trust by the borrower's solicitor. The borrower must pay the contractor out-of-pocket or via bridge loan first, then get reimbursed. Some lenders allow partial releases for major projects exceeding $40,000, but most stick to a single release at 100% completion.

## Related guide
- https://ratellow.com/guides/renovation-financing-guide

## Sources
- CMHC Eco Plus Program — https://assets.cmhc-schl.gc.ca/sf/project/cmhc/pdfs/factsheets/new/cmhc-quick-reference.pdf
- Financing Renovations Guide — https://www.canada.ca/en/financial-consumer-agency/services/industry/laws-regulations/guideline-existing-mortgage-loans-exceptional-circumstances.html#toc3