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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Deposit vs. Down Payment: Key Differences for Homebuyers

By Marci Deane • July 29, 2026
When you’re buying a home, two terms often cause confusion: deposit and down payment . While they’re related, they serve very different purposes in the homebuying process. Here’s what you need to know. What Is a Deposit? A deposit is the money you provide when you make an offer on a property. Think of it as a show of good faith that proves you’re serious about purchasing. How it works : Typically, you provide a certified cheque or bank draft that your real estate brokerage holds in trust. If your offer is accepted, the deposit remains in trust until the deal moves forward. If negotiations fall through, the deposit is refunded. Connection to your down payment : Once the sale is finalized, your deposit becomes part of your total down payment. Why it matters : The amount is negotiable, but a larger deposit can make your offer more attractive in a competitive market. Keep in mind, however, that if you back out after conditions are removed, you risk losing your deposit. What Is a Down Payment? Your down payment is the amount you contribute toward the purchase price of your home when securing a mortgage. Minimum requirement : In Canada, the minimum down payment is 5% of the home’s purchase price. Anything less than 20% requires mortgage default insurance. Sources : Down payments can come from your savings, the sale of another property, RRSP withdrawals (through the Home Buyers’ Plan), a gift from family, or even borrowed funds. Example: How They Work Together Imagine you’re buying a $400,000 home with a 10% down payment ($40,000). When you make your offer, you provide a $10,000 deposit . Once conditions are met, that deposit is transferred to your lawyer’s trust account. At closing, you add the remaining $30,000 to complete your full down payment. The lender provides the rest—$360,000—through your mortgage. The Bottom Line Your deposit shows commitment and secures your offer, while your down payment is what makes the mortgage possible. Together, they work hand in hand to get you into your new home. 📞 If you’d like clarity on deposits, down payments, or any other part of the mortgage process, let’s connect. I’d be happy to walk you through it step by step.

RRSP Home Buyers’ Plan Explained: A Smart Way to Buy Your First Home

By Marci Deane • July 22, 2026
Saving for a down payment is one of the biggest challenges first-time buyers face. What many don’t realize is that the Canadian government offers a program designed to make it easier—the Home Buyers’ Plan (HBP) . This program allows you to withdraw money from your RRSP to help purchase your first home, without immediate tax consequences. Here’s how it works: Who Qualifies? To be eligible, you generally need to be a first-time home buyer. In practical terms, this means you must not have owned a home in the past four years, nor lived in a property owned by your spouse or partner during that time. There are also special allowances if you’re living with a disability or helping a relative with a disability. In these cases, you can use the HBP even if you’ve owned a home more recently. How Much Can You Withdraw? Under the program, you can access up to $35,000 from your RRSP as an individual. Couples can combine their withdrawals for a total of $70,000 . These funds must have been in your RRSP for at least 90 days before you take them out. Paying It Back The HBP isn’t “free money”—it’s an interest-free loan from your own retirement savings. You’ll have 15 years to repay the full amount back into your RRSP, starting in the second year after withdrawal. Each year, the CRA will send you an HBP Statement of Account outlining how much needs to be repaid. If you don’t make your repayment in a given year, that amount will be added to your taxable income. Why It’s a Smart Strategy The HBP can give first-time buyers a powerful boost toward homeownership. It helps you put together a larger down payment, which can reduce your mortgage amount and monthly payments. Just remember: it’s important to balance the short-term benefit of homeownership with the long-term impact on your retirement savings. Next Steps Thinking about using the Home Buyers’ Plan? Let’s sit down and review whether it’s the right move for you. Together, we can create a strategy that gets you into your first home while keeping your future financial goals on track. 📞 Reach out anytime—it would be a pleasure to guide you through the process.

Bank of Canada Holds Rate at 2.25% — July 15, 2026

By Marci Deane • July 15, 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%. The tone of today's announcement is notably more optimistic than previous months. Here's what's changed and what it means for you.