The Pros and Cons of Buying New Construction Versus a Pre-owned House or Condo

Marci • December 10, 2014

Whether you’re new to the Vancouver real estate market or you’re a seasoned veteran who is buying their third or fourth home, one of the major considerations you’ll need to make is whether you want to buy an existing pre-owned home or you want to buy something newly-built. In today’s post we’ll assess some of the pros and cons of buying a brand new home versus buying pre-owned including price differences, the need for renovations and more.

The Price Factor

For many homebuyers, price is a major deciding factor in the type and size of home that they end up purchasing. Here in Vancouver, in most cases you’ll find that pre-owned homes are less expensive than an equivalent piece of new construction. Of course, if you’re interested in buying a detached house on a sizeable piece of land you’ll end up paying far more for the ground under the home than for the home itself, so in this case a new house may be about the same price as an existing one.

Location, Location, Location

Location is another major consideration when buying a new home and this will impact whether or not you can buy something brand new. If you’re after a newly-built condo, you’ll be able to have your pick from many new buildings in Downtown Vancouver, North Vancouver, Burnaby, Richmond and Surrey. However if you’re looking for a new house, you may find that your options are more limited in these areas and you may need to expand your search to further out in the suburbs.

Customization vs. Renovation

Are you the type that likes to be able to select all of the fixtures and amenities that go into your home? If so, you’ll want to buy new as you can have your say before the home is completely finished. Conversely, if you’re a ‘do it yourselfer’ or you love the idea of having a number of renovation projects to keep you busy, you’ll prefer a pre-owned home.

What About the Warranty?

One of the major benefits of purchasing a brand new house or condo is that it will come with a warranty, typically lasting anywhere from five to ten years. Having a warranty on your home can be incredibly handy if a major structural item decides to give out or some other serious flaw is discovered. If you’re buying a pre-owned home you can typically get an after-market warranty but you’ll either end up paying out of pocket or you’ll have to convince the seller to cover this cost as part of the purchase agreement.

It doesn’t matter if you’re buying a brand new piece of Vancouver real estate or you decide to go with a pre-owned property, if you’re in need of mortgage financing to help secure the home, I can help. Contact me at your convenience and I’ll be happy to share my expertise to assist you with choosing the right mortgage.

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Bank of Canada Holds Rate at 2.25% — March 18, 2026

By Marci Deane • March 18, 2026
The Bank of Canada announced today that it is holding its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. For anyone watching the mortgage market — whether you're renewing, purchasing, or simply keeping an eye on borrowing costs — here's a breakdown of what was announced and what it may mean for you.

Is Now the Right Time to Buy? A Look at Canada's 2026 Housing Market

By Marci Deane • March 17, 2026
For many Canadians, the dream of homeownership has felt like a moving target. After years of market volatility, shifting interest rates, and economic uncertainty, you might be wondering: is 2026 finally the year to make a move?

Everything You Should Know Before Buying a Home

By Marci Deane • March 11, 2026
Thinking About Buying a Home? Here’s What to Know Before You Start Whether you're buying your very first home or preparing for your next move, the process can feel overwhelming—especially with so many unknowns. But it doesn’t have to be. With the right guidance and preparation, you can approach your home purchase with clarity and confidence. This article will walk you through a high-level overview of what lenders look for and what you’ll need to consider in the early stages of buying a home. Once you’re ready to move forward with a pre-approval, we’ll dive into the details together. 1. Are You Credit-Ready? One of the first things a lender will evaluate is your credit history. Your credit profile helps determine your risk level—and whether you're likely to repay your mortgage as agreed. To be considered “established,” you’ll need: At least two active credit accounts (like credit cards, loans, or lines of credit) Each with a minimum limit of $2,500 Reporting for at least two years Just as important: your repayment history. Make all your payments on time, every time. A missed payment won’t usually impact your credit unless you’re 30 days or more past due—but even one slip can lower your score. 2. Is Your Income Reliable? Lenders are trusting you with hundreds of thousands of dollars, so they want to be confident that your income is stable enough to support regular mortgage payments. Salaried employees in permanent positions generally have the easiest time qualifying. If you’re self-employed, or your income includes commission, overtime, or bonuses, expect to provide at least two years’ worth of income documentation. The more predictable your income, the easier it is to qualify. 3. What’s Your Down Payment Plan? Every mortgage requires some amount of money upfront. In Canada, the minimum down payment is: 5% on the first $500,000 of the purchase price 10% on the portion above $500,000 20% for homes over $1 million You’ll also need to show proof of at least 1.5% of the purchase price for closing costs (think legal fees, appraisals, and taxes). The best source of a down payment is your own savings, supported by a 90-day history in your bank account. But gifted funds from immediate family and proceeds from a property sale are also acceptable. 4. How Much Can You Actually Afford? There’s a big difference between what you feel you can afford and what you can prove you can afford. Lenders base your approval on verifiable documentation—not assumptions. Your approval amount depends on a variety of factors, including: Income and employment history Existing debts Credit score Down payment amount Property taxes and heating costs for the home All of these factors are used to calculate your debt service ratios—a key indicator of whether your mortgage is affordable. Start Early, Plan Smart Even if you’re months (or more) away from buying, the best time to start planning is now. When you work with an independent mortgage professional, you get access to expert advice at no cost to you. We can: Review your credit profile Help you understand how lenders view your income Guide your down payment planning Determine how much you can qualify to borrow Build a roadmap if your finances need some fine-tuning If you're ready to start mapping out your home buying plan or want to know where you stand today, let’s talk. It would be a pleasure to help you get mortgage-ready.