top of page
Builder Mortgaages | Tony Piattelli | Calgary Mortgage Broker


Building your own home can be incredibly rewarding, but securing a mortgage for a construction mortgage may take a bit more work. Here’s what you need to know.

The mortgage process for the construction of a new home is more complicated and often more expensive than that of a conventional mortgage on an existing home. Most lenders require more assurances before they’ll start lending you money. 


Typically, you’ll need a high credit score, decent income, and proof that the construction of their home will be completed within a certain timeframe. Lenders will also want to verify that the contractor or home builder in question is certified and has a certifiable history. You can act as your own contractor, however, lenders will apply more scrutiny than an established builder.


Building a house from the ground up is risky for both the borrower and the lender so you will also require a larger down payment than a traditional mortgage, usually 20-30%.



When you’re planning to build your new home, you first have to purchase a vacant lot. If you are buying an empty lot, you may need to secure a separate loan to finance the lot. in 


You’ll need to have a good credit score and a decent income. Be warned, you will need to make a sizable deposit on the land itself, sometimes 25-35%. However, you might be able to get a loan from a private lender by opening a personal line of credit, or by opening a HELOC (Home Equity Line of Credit) through another property that you already own.


Buying a home already under construction from a new home builder is another great option and is quite common in new neighbourhoods. 


Just the same as purchasing a vacant lot, selecting a qualified builder is also important. With over 20 years in the industry, I can help you find the builder that fits your needs and has a good reputation. Most builders will provide a warranty, usually for one year, for their work and the building materials used during the home’s construction. 


Once you have the warranty, we’ll read it carefully so you know exactly what parts of your house it covers. And, with that warranty, most contractors will include a homeowner’s manual so that you can keep up with the basic maintenance of your new home in the years to come. 


Whether you want to build your new home in Calgary, Red Deer, Lethbridge, Cochrane, Okotoks or in the middle of nowhere, I'm here to help. 

bottom of page