Skip to main content

The first thing to do is find a lot that suits your home needs.  You can either purchase the lot outright or put a specified amount down, determined by the lender, to secure it.

When a professional contractor is building your home you will supply us with the plans, an agreed upon signed contract which will lay out the cost and materials as well as the terms and conditions of the build, including when he will require specific “draws”.  An appraisal is required to ascertain the value of the completed project and prior to each draw the appraiser returns and does an inspection to confirm what has been completed and what is yet to be completed.  Your draws are based on these inspections. The contractor will take all the worry out of the process by arranging all the trades and materials for the construction.  The first draw is normally when the foundation is complete.  Generally, the next advance will be at lock up which means the home is framed, with all the windows and doors in and the roof is finished.  The third draw will be after the drywall, electrical, roughed in plumbing, etc. is completed.  The final draw will be when the home is 100% complete and an “occupancy permit” is issued by the City or Regional District.  The draws may vary slightly but will be spelled out in the contract.  Of importance, the draws are based on a “cost to complete basis” and funds will be advanced to ensure there are sufficient funds held back to bring the home to a completed basis.  This can result in a shortfall at the onset and most lenders require you have a contingency fund to facilitate the early shortfalls.   One of the most important items that lenders require is the “New Home Warranty” which your contractor will supply.  The terms and conditions of the warranty will be relayed to you by the contractor and is supplied to the lender.

During the construction phase you are required to make interest only payments each month.   The maximum term for the construction process is typically 6 – 12  months.