Calgary New Home Financing

Good Idea or Bad Idea?

Buying a new home in Calgary has its advantages and disadvantages. You want to find the home that’s right for you and the builder who provides the best overall value and service. Home buyers and professional home builders agree there are a number of things you can do to make the buying process enjoyable and successful.

Pre-arrange your mortgage

This is always the first place to start. Whether you are buying a new or used home in Calgary, you need to talk to your mortgage consultant. Although the arranging of a mortgage is much the same whether it is a new build or not, there are some very key differences you need to know before you go shopping. Knowing in advance how much you can spend comfortably and getting pre-approval for a mortgage is important. If you are offered any financing from the builder check first with your mortgage specialist to make sure it really is a good deal. When you do decide to sign the contract, make sure that you give access to your consultant to access information on your behalf to make the process smoother.

Other tips for New Home Buyers

Research is key

Know what you want, the first and most important step. Before signing any contracts consult with family, friends and co-workers before. Browse through newspapers, magazines and industry/government publications. Attend consumer seminars and check the Internet. Most importantly, visit model homes and talk with builders and salespeople.

Some questions for the builders

There are many reputable, professional builders in Calgary who provide great homes and great service. As you talk with builders or their salespeople, ask a few questions:

• How long has the company been in business?
• Is it a member of the Canadian Home Builders’ Association?
• Will the builder give you references?
• What after-sales service does the builder offer?
• Does the builder supply a guaranteed third-party warranty and what does it cover?
“Personal fit” is also important:

• Does the builder (or salesperson) listen to you?
• Understand your needs?
• Offer useful advice?
• Do you feel confident that the company would be good to work with?

Check the home carefully

Whether a builder has a model home, a sales office or sells directly from drawings and plans, you’ll have plenty of opportunities to look closely at the quality of the builder’s home and what’s included. The builder’s “spec” list will detail the construction materials and finishing products. Ask to see a description, and samples, of the standard features included in the base price of the house, along with the description and cost of options the builder offers. When viewing a model home, don’t hesitate to try out windows, open drawers and look into every nook and cranny-the builder wants you to be convinced of the home’s quality and solidity. One downside of a new build is the constant checking that you have to do to make sure they meet your requirements. Make sure you do check ups at every different stage of the building of your new home. I don’t care who the builder is, this is Calgary and dealing with almost any trade worker requires a lot of quarterbacking.

Cost of buying

Get detailed prices and estimates on everything involved in buying a home. Realize that upgrades and customizing your home can add a lot of extra costs you may not be use to. Your builder and your mortgage professional can advise you on the costs of securing a mortgage, taxes and so on. Ask your Consultant to give you a detailed breakdown of closing costs, including land transfer taxes where applicable. Call movers for estimates. Determine if you need to buy new appliances, window coverings or furnishings.