TOP 5 THINGS TO CONSIDER WHEN BUILDING YOUR NEW HOME
- johnathanmcquoid
- Jan 18
- 2 min read
Building a home from the ground up is exciting, stressful, rewarding, and exhausting — all at the same time.
Whether this is your first build or your fifth, planning properly is the difference between “never again” and “bring on the next one!”
Here are the Top 5 things you MUST consider before you start.
1️⃣ Know Your Numbers First
Before you fall in love with a floor plan, you need a realistic budget.
Most home-plan companies offer a “cost to build” tool to estimate construction expenses in your region.
Your budget should include:
✔️ land cost
✔️ hard construction costs
✔️ soft costs (permits, engineering, design fees, etc.)
✔️ contingency funds (10–15%)
This is what lenders use when determining your construction mortgage.
Most lenders will provide financing based on the lower of:
✔️ a percentage of total cost, or
✔️ the appraised value “as completed”
We review all numbers with you so there are no surprises.
2️⃣ Choose a Reputable, Qualified Builder
Not all builders are equal.
Make sure your builder is:
✔️ licensed
✔️ insured
✔️ experienced with your type of project
✔️ financially stable
✔️ able to provide references
Ask friends, family, and ask us — we work with builders often and can recommend qualified, reliable professionals.
Your builder will be responsible for schedules, trades, quality, and inspections.
Choose wisely.
3️⃣ Build for Today AND Tomorrow
Customization is great — but resale matters too.
Ask yourself:
• Will these design choices appeal to future buyers?
• Does the layout fit the neighbourhood?
• Does the home allow for future life changes?
Highly-personalized features can hurt resale value and limit your buyer pool later.
Balance personality with practicality.
4️⃣ Go Energy-Efficient from the Start
Designing a home gives you the chance to build smart and save money long-term.
Consider:
✔️ high-efficiency HVAC systems
✔️ upgraded insulation
✔️ triple-pane windows
✔️ energy-efficient appliances
✔️ heat pumps
✔️ smart thermostats
These upgrades can reduce your monthly bills and may qualify you for rebates, depending on the program year.
Energy efficiency also increases resale value and overall home comfort.
5️⃣ Understand How Construction Mortgages Work
Construction mortgages don’t work like standard mortgages.
Here’s what you need to know:
✔️ They are interest-only during construction
You only pay interest on the money that has been advanced — not the total mortgage.
✔️ Funds are released in stages
Draws are typically advanced after key milestones (foundation, lock-up, drywall, completion).
✔️ Completion converts to a regular mortgage
Once inspected and approved, your loan becomes a standard mortgage.
✔️ Timelines matter
Most lenders require construction to be completed within a set timeframe (usually 6–12 months).
✔️ Lender approval depends on marketability
Location, comparable sales, geography, and access all affect approval.
💡 Final Thought
Building a home takes planning, organization, and the right team.
If you’re considering building, message The Frontline Mortgage Group. We’ll help you understand construction financing, review your budget, and guide you through the process from blueprint to move-in day. 💬