Buying a New Build Home in Ottawa: Everything You Need to Know
Are you dreaming of building your own home? A home that has all your favourite fixtures and finishes and was designed with your family’s needs in mind? If you’re considering buying a pre-construction home in Ottawa, but aren’t sure if it’s right for you, read on! We’ve broken down everything you need to know about buying a new-build home in Ontario.
What is a New Build or Pre-Construction Home?
A new build or pre-construction home is a home that is purchased from a builder or developer before it has been built. It could be an empty lot with a plan for a single home, or part of a development with multiple lots available. In some instances, if a previous sale has fallen through, you could purchase an already built, new home that no one has lived in yet.
Benefits of a Pre-Construction Home
One of the main reasons people choose to buy a pre-construction home is the ability to customize features and finishes. Even in a development with limited models, you can usually select cabinet colours, countertops, and flooring. Depending on the builder, you may also be able to fully customize floor plans so you can truly design a home that works for your needs.
A new build home also requires less maintenance than a previously owned home. Since all the systems and appliances are brand new, you rarely have to worry about repairs or replacements for many years. Additionally, pre-construction homes generally offer a good return on your investment. If the neighborhood continues to grow and thrive, the value of a new home will almost always increase.
What Are My Options When Buying a New-Build Home?
If you’re interested in building your own pre-construction home, you’ll need a plot of land, architectural plans, a builder, and the necessary permits and approvals. If you don’t want to find the land and design the home yourself, you can also purchase a newly built home on a single lot from a small builder. Alternatively, you can purchase a pre-construction home in a new building, development or subdivision. You’ll have a choice of a few models, and builders will often set up model homes and have detailed plans and drawings to show buyers what kind of home they are purchasing.
Choosing A Builder for Your New Home
The success of your new build home project will rest largely on the shoulders of your builder. While there are many components that go into building a new home, a reputable builder is crucial if you want a good experience and a quality finished product. Look for builders with experience in the type of home you want and who are able to show you examples of past homes they’ve built. Ask for references from previous clients and be sure to follow up on them. If possible, visit a completed development and talk to residents for their honest opinions. And always check the Ontario Builder Directory (OBD) to confirm that the builder is licensed to build homes in Ontario. The directory can also provide information on completed projects, claims history, and any illegal building convictions in the last 10 years.
Financing Your New Build Home
One of the biggest obstacles for people considering buying a new build home in Ontario is the large down payment that is usually required. Most builders ask for a 20% down payment, which means you’ll need to have this amount saved up before applying for financing.
Instead of a traditional mortgage, you can obtain a construction loan for a new build project. A construction loan is a short-term loan specifically for financing the construction of a new home (or in some cases, a substantial renovation). Construction loans disburse funds in draws as the project advances. This is to ensure that money is available as needed at pre-determined stages of construction. Once construction is complete, the construction loan is usually converted to a standard mortgage.
Cons of Buying a Pre-Construction Home
Aside from the large down payment, there are a few cons to buying a pre-construction home that you should be aware of. Delays with new construction projects are common and can sometimes be lengthy. Be aware that you may not be able to move in on the date you planned, and if you sell your current home first you could have to find alternate lodging in between.
Often the price that you see for a new-build home is for the base model which is not as nice as the model home you saw. Any upgrades will cost extra and can add up quickly, so be sure to carefully review what is included in the price. You also won’t really know what you’re getting until you move in. While plans and 3D renderings give a detailed view of the home, things may not be exactly as you have envisioned.
Choosing A Real Estate Agent for Your New Build Home
With so many new developments in the Ottawa area, it’s no surprise that buyers are considering pre-construction homes when it’s time to make a move. But many people are not aware that they still need a Realtor® on board when looking at a new-build home. Even just requesting more information online or signing in at a model home can sometimes include the stipulation that you can’t have other representation when working with that company. There are so many different parts that have to come together when building your own home, you always want to have someone experienced on your side to ensure you’re not missing any important details.
If you’re thinking about building your own home, contact us to find out how we can help you through the process and protect your interests. We’ll help you find the right property and a reputable builder so your dream home really will be a dream!