There are many things to consider once you’ve decided to buy your first home, especially when choosing between buy new or previously owned. A new home is one that has just been built — no one else has lived in it yet. You might buy a new home from a contractor who has built it, or you might hire a contractor to build it for you. A previously-owned home has already been lived in.

According to According to Canada Mortgage and Housing Corporation, here are some things to consider when thinking about buying a new home:

  • Up-to-date
    • A new home has up-to-date design that might reflect the latest trends, materials and features.
  • Choices
  • You may be able to choose certain features such as style of siding, flooring, cabinets, plumbing and electrical fixtures.
  • You may have to pay extra if you want to add certain features, such as a fireplace, trees and sod, or a paved driveway. Make sure you know exactly what’s included in the price of your home.
  • Taxes such as the Goods and Services Tax (GST) (or, in certain provinces, the Harmonized Sales Tax (HST)) apply to a new home. However, you may qualify for a rebate of part of the GST or HST on homes that cost less than $450,000. For more information about the GST New Housing Rebate program, visit the Canada Revenue Agency website at www.cra-arc.gc.ca.
  • A new home will have lower maintenance costs because everything is new, and many items are covered by a warranty. You should set aside money every year for future maintenance costs.
  • A warranty may be provided by the builder of the home. Be sure to check all the conditions of the warranty. It can be very important if a major system such as plumbing, or heating, breaks down.
  • New Home Warranties may be provided by provincial governments. There are also private new home warranty programs. In some provinces a warranty may be provided by the builder of the home. Check with your realtor or lawyer/ notary to find out what the new home warranty program in your province covers.
  • Check the internet for Home Warranty Programs in your province.
  • schools, shopping malls and other services, may not be completed for years.
  • Costs
  • Warranties
  • Neighbourhood amenities

Want to learn more? Join the conversation and follow us!