When you’re buying a new construction home, you may have a choice between two types of mortgages: completion mortgages and draw mortgages. Each type of mortgage has its own advantages and disadvantages, and it’s important to understand them before you make a decision.
Completion Mortgage
A completion mortgage is a type of mortgage that’s used to finance the purchase of a newly built home upon possession. With a completion mortgage, you put a down payment down and the lender provides you with the full loan amount at the time of closing. You don’t start making payments on the mortgage until you have possession of the home.
One advantage of a completion mortgage is that you know exactly how much you’re borrowing and what your monthly payments will be from the start. This can help you budget more effectively and avoid any surprises down the line.
Draw Mortgage
A draw mortgage, also known as a construction mortgage or a progress-draw mortgage, is a type of mortgage that’s used to finance the construction of a new home. With a draw mortgage, the lender provides you with funds in stages, or “draws,” as the construction progresses.
One advantage of a draw mortgage is that you only pay interest on the amount of money you’ve drawn, not on the full loan amount. This can help you save money on interest payments during the construction phase, when you may not yet be living in the home or making regular mortgage payments.
Which One is Right for You?
So, which type of mortgage is right for you? It depends on your situation and the builders procedure.
A completion mortgage may be the way to go. This type of mortgage is straightforward and easy to understand, and it can help you budget more effectively.
If you’re building a new home from scratch, a draw mortgage may be a better fit. This type of mortgage allows you to finance the construction in stages, and lock in your interest rate.
Ultimately, the decision between a completion mortgage and a draw mortgage depends on your specific needs and the builder. It’s important to work with a mortgage professional who can help you weigh the pros and cons of each option and choose the one that’s best for you.
If you’re in the market for a new home in Edmonton, AB, there’s never been a better time to buy. With new construction homes all over the city, you’ll have a wide range of options to choose from.
Why should you consider buying a new construction home? Here are just a few reasons:
1. Modern design and features
New construction homes are designed to meet the latest building codes and standards, which means they often come with a range of modern features and amenities. From open floor plans and high ceilings to energy-efficient appliances and smart home technology, new homes are built with the needs and preferences of today’s homebuyers in mind.
2. Customization options
When you buy a new construction home, you often have the opportunity to customize it to your liking. Depending on the builder and the stage of construction, you may be able to choose finishes such as flooring, countertops, cabinets, and paint colours. You may also be able to make structural changes such as adding a fireplace or a fourth bedroom.
3. Low maintenance
New construction homes typically require less maintenance than older homes, as everything is brand new and under warranty. You won’t have to worry about replacing a leaky roof or outdated HVAC system anytime soon, which can save you money and hassle in the long run.
4. Strong resale value
A new construction home is likely to hold its value well over time, as it will have all the latest features and technology. This can be especially true in a city like Edmonton, where the demand for housing is strong and new construction is always in demand.
5. Get pre-approved for a mortgage
Before you start seriously looking at homes, get pre-approved for a mortgage so you know what kind of budget you’re working with. This will help you avoid falling in love with a home that’s out of your price range.Work with a Real Estate Agent
6. Work with a Real Estate Agent
Consider working with a Real Estate Agent who has experience with new construction homes in Edmonton. They can help you find the right builder, negotiate on your behalf, and guide you through the buying process.
In conclusion, if you’re in the market for a new home in Edmonton, AB, now is the perfect time to buy. With new construction homes offering modern design, customization options, low maintenance, and strong resale value, you’re sure to find a home that meets your needs and preferences.
84 new single family home listings came on the market in the month. The average list price of homes $483k up by 5.9% from May of last year. There’s been a decrease in sales of 15.8%, with a total of 64 homes sold in Spruce Grove during May of 2023. $474.5K was the average sales price on homes, up from $432.6k in May of last year. HOmes in Spruce Grove are on market for an average of 73 days, 50 days longer than same time last year.
Detached Single Family Home Sales in Edmonton: A Market Update for April 2023
Interactive bar graphs
New listing count for single family homes in the city has decreased from last year 33.2%. 1.36K new listings came on market in April.
With the decreased inventory for single family homes listing prices have risen to $554K, a slight in crease of 2.75%.
A total of 758 single family homes sold in April that’s a decrease of 32.6%. 1.1K sold in April 2022
The average price of sold homes has decreased to $492k year over year for the month of April. Down 4.7% from $516.2k in April 2022. There is a large disconnect in listing price to sales price making it more of a buyers market, however they are many multiple offer situations happening as buyers compete for the same homes.
Days on Market has also increased upto an average of 70 days on Market before sale, an increase of 133% over last year.
In April 2023, there were 117 new listings in Parkland County, which is a decrease of 26.88% compared to the same period in 2022.
Average Asking Price:
The average asking price for properties in Parkland County was $714,000, which is an increase of 33.03% compared to the same period in 2022.
A total of 40 properties were sold in Parkland County, which is a decrease of 45.21% compared to the same period in 2022.
Average Sale Price:
The average sale price for properties in Parkland County was $582,000, which is a 6.76% increase compared to the same period in 2022.
Days on Market Until Sale:
The average number of days a property remained on the market until it was sold was 80 down for 127 days on market last year.
High demand for properties in Parkland County has led to an increase in the average asking price and ask to sell ratio. We will continue to monitor the market trends and provide updates in our next monthly real estate market blog.
If you’re in the market for a brand new and spacious home in a desirable neighbourhood, you won’t want to miss out on this gem in Laurel, Edmonton. The London Plan boasts a unique layout with four bedrooms, including one on the main floor, and an innovative design that offers maximum privacy and luxurious features.
One of the standout features of this home is the main floor’s layout. The fourth bedroom on the main floor is perfect for accommodating guests or as a home office. The full bathroom on the main floor is a convenient feature for your guests, making it easy for them to have their own space and privacy.
The mudroom, which flows from the garage to the pantry, is an airy space that offers seclusion and convenience. The kitchen features a large island with ample bar seating for casual eats and entertaining. The oversized nook is perfect for hosting formal dinner parties, and the living room features an open-to-below ceiling, adding a grand and luxurious feel to the entire first floor.
The second floor of this home is equally impressive, with a beautiful master bedroom that features an exceptional en-suite and walk-in closet. The open-concept design of the second floor allows for an open-to-below view, without sacrificing the essential bonus room. The second and third bedrooms are also located on this floor, providing ample space for the whole family.
With a side entrance you have optionsfor additional living space, making this home perfect for growing families or investors. Use your imagination the basement development can be a space for guests, a home office, or a rental unit.
Our homes are the healthiest–live better, sleep easier & breathe cleaner indoor air in a Landmark Home.
Moisture Control
Mold, Mildew & Bacteria FREE. We build indoors with engineered lumber, to achieve a moisture free structure. Moisture promotes unwanted mold, mildew and bacterial growth. Engineered lumber is treated to inhibit bacterial growth, and safe moisture levels are maintained by the Hi-Velocity System, to ensure conditions where these unhealthy bacteria can grow & spread are significantly reduced.
Cleaner Air
Dust, allergen & pollution FREE. The Hi-Velocity System is designed to filter air to a high standard. This results in the elimination of unwanted pollution, dust and allergens from your indoor air, improves and promotes good respiratory health.
Medical Grade Indoor Air
Say hello to the cleanest indoor air, free of chemicals, allergens, odours, bacteria, germs and viruses including COVID-19. Our brand-new air purification system is a 3-stage medical-grade filtration system that purifies & detoxifies your homes indoor air to protect your family. As indoor air circulates through the filter, impurities are eliminated in 3 unique stages using advanced technologies. This 3-stage process ensures your family is breathing the healthiest indoor air possible, while conserving energy & saving money.*
Pressurized Air
Zero dust build up! The air in a Landmark Home is pressurized through tiny ducts, this eliminates the build-up of dust and debris that is commonly found in conventional forced air systems. With dust collection, comes unwanted health related issues.
Air Tight Build
Better ventilation & draft free! Our homes are airtight, because they are precision built. This means your home is better ventilated through the HRV, and free of drafts. This quality offers safer indoor air, free of unwanted airborne pollutants, and uneven temperatures.
Circulation & Climate
Indoor air circulates 24/7. The air in your home never stops moving! A constant fan in the Hi-Velocity System ensures consistent air circulation and even temperature throughout your home, 24/7. Even temperatures and constant air circulation helps to promote good cardiovascular health.
Non Toxic Materials
Ultra low VOC’s & formaldehyde FREE! We have consciously made interior and structural material selections and that give off little to no VOC emissions. VOC’s are vapours that release toxic chemicals into the air we breathe and can negatively impact our health. For example, all of our cabinetry is finished with organic water based thinners to ensure low VOC emissions. Our carpet selections are certified safe for a healthy home & made in part with renewable plant based resources. Behind you walls, the structure of your home is made with engineered lumber that is steam pressed and bonded together with formaldehyde free adhesive.
This home is also located in the desirable neighbourhood of Laurel, which offers plenty of amenities and easy access to major transportation routes. Laurel Crossing is just minutes away, featuring grocery stores, restaurants, and a variety of shops. The Meadows Recreation Centre is also nearby, providing access to fitness classes, a swimming pool, and other activities for the whole family.
This modern home in Laurel, Edmonton, is a must-see for anyone in the market for a luxurious and innovative living space. Don’t miss your chance to own this new construction home in Laurel!
We are thrilled to invite you to our open house event on Saturday April 29, 2023 and Sunday April 302023, Noon-3pm! #14 & 18 8050 Orchards Gr SW, Edmonton
Not only will you have the chance to explore these stunning bungalows, but you’ll also have the opportunity to win a pair of tickets to an Edmonton Oilers game!
As you step into the front foyer, you’ll immediately notice the bright office area with French doors. The open concept living space with soaring ceilings and an electric fireplace creates a warm and inviting atmosphere. The spacious kitchen with a massive island and walk-in pantry is perfect for entertaining. Sliding glass doors that open onto an oversized rear deck provide the ideal space for outdoor gatherings.
The primary is a true retreat, featuring a spa-inspired ensuite bathroom and a walk-in closet. And with two additional bedrooms, a den, a full bathroom, and a large recreation room with another fireplace in the walkout basement, there is plenty of space for your family and guests.
This home also includes a double attached garage, a $5,000 appliance allowance, and professional landscaping. The condo fees that include Landscape/Snow Removal, Professional Management, and Reserve Fund Contribution.
Don’t miss out on this incredible opportunity to own a stunning award-winning luxury bungalow. Join us on April 29 & 30 for the open house event, and who knows, you might just be the lucky winner of the Edmonton Oilers tickets!
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