Looking to start fresh in a fabulous custom built home but not quiiiiite sure of what to expect? There is a lot to know when you go the new construction route. When you have a real estate agent who is well versed in this area PLUS is going to have your back at each step you will make it through... Even if that seems unlikely at times.
So lets tackle a few questions to get you started!
Can I get a loan to build?
A) Yes! A greater down payment, typically between 25 and 30 percent, is normally required to build a home, so a loan may help you get there. To purchase vacant land, you'll need a separate loan, which normally has higher interest rates than a traditional mortgage.
What are my mortgage options?
A) When it comes to building a home, there are Home Construction and Self-Build Mortgages. Your construction loan is then utilised to pay for the construction. Interest rates and conditions differ from one lender to the next.
How long does it take to build?
The average house takes 10-16 months to build on average, providing everything goes according to plan. That doesn't include clearing the land or issues like bad weather, lack of manpower and delays on materials. Many Calgarians have noticed delays over the last year with material shortages and shipping delays. This is an issue arising across many industries and it is important to try to be patient but still ask questions. Your agent can help to make sure that everything is being relayed to you as efficiently and clearly as possible. Plan ahead for any hiccups. It's always safe to have a options ready when things may not immediately be coming together.