New Home Warranty Vs. Mortgage Lenders

Have you considered buying new construction versus resale housing? If you are, one of the first things you should check is if the builder offers a new home warranty program. This is extremely important in order to secure mortgage financing on a newly constructed home. Most mortgage lenders won't insure financing on new construction that hasn't been occupied yet or does not have new home warranty coverage in place.

What this means to the Buyer is that you may be required to put 20% or higher down on the purchase price in order to secure a mortgage. With the rising costs of housing and construction, that down payment can be upwards of $60,000.00. Consequently, as a Seller or Builder of new construction, not having new home warranty coverage in place can mean that you are eliminating a large number of potential buyers from considering your home. 

Having that new home warranty coverage in place not only protects both the consumer and builder, but it also allows you to secure an insured mortgage (i.e. CMHC, Genworth) where a 5% down payment is acceptable. If this is a move you have been considering doing in the near future, give me a call and I can guide you through the process.

Check out: www.blankethomewarranty.ca for more information regarding New Home Warranty Coverage

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Noel Geremia

Noel Geremia

Associate Broker
CENTURY 21 Dome Realty Inc.
Contact Me

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