To build or to buy?

That is the question. Faucets, light fixtures, paint colours all custom picked by you – does this sound like something you’re interested in? Maybe you’re thinking of building a home but not sure your budget will allow you? Let’s go over a few key points on whether building a home is right for you.

Get a Construction Mortgage

Did you know that Affinity offers a Construction Mortgage that many other financial institutes don’t? With our Construction Mortgage, you can buy a brand new home with as little as a 5% down payment. If you thought building a home was just for the people who have a massive amount of cash piled away, that’s no longer the case if you decide to get a Construction Mortgage from Affinity. You can also pull money out as you need it during the building process and you only pay interest during the time of construction. Once your home is built, you’ll switch to blended payments.

Keep additional costs in mind

When you’re building a new home, it’s not just the house itself you have to create from scratch – it’s the yard, landscaping, deck, fence, driveway pouring and many other expenses that come with it. These additional costs are just that – costly. So, when thinking about building a home, remember to include these expenses in your overall budget. If the work and expenses sound like too much, then buying a resale home might be a better fit for you. However, keep in mind that over the years you’ll consistently spend more on maintenance with a resale home than a new build. With a new build, those expenses are often more upfront.

Figure out how much you can afford

Buying a house is likely going to be the biggest purchase of your life – which is why it’s wise to know how much you can afford and what your payments will be over the long run. Check out our Mortgage Calculator to find out what you should be budgeting for your big investment.

Map out your timelines

Construction timelines can vary drastically so it’s useful to have a Plan B if your house isn’t finished on time. You might have to rent a place for a while or even move in with friends or family. This could be an additional expense, so it’s good to keep this in your budget. You’ll work with your builder to come up with a general timeline, which will include the following:

  • Pre-construction – Pulling permits and securing financing.
  • Breaking ground and laying foundation.
  • Framing the house and building the roof.
  • Plumbing and wiring.
  • Putting up the drywall and finishing the interior.
  • Installing floors and painting walls.
  • Finishing touches.

Ultimately, the choice is yours. Whatever your decision on what kind of home you’d like to purchase is, we’re here to help! You can start by getting pre-approved online, calling our Contact Centre at 1.866.863.6237 or visiting us at a location near you. We’re here to help make your dream house your current home.