New Home

Advantages

  1. Personalized choices: You may be able to upgrade or choose certain items such as siding, flooring, cabinets, plumbing and electrical fixtures.
  2. Up-to-date with the latest codes/standards: The latest building codes, electrical and energy-efficiency standards will be applied.
  3. Maintenance costs: Lower maintenance costs because everything is new and many items are covered by a warranty.
  4. Builder warranty: A homebuilder’s warranty is usually available in all provinces (except Nunavut and the Northwest Territories). This can be important if a major system such as plumbing or heating breaks down. This warranty does not apply if you build the home yourself.

Disadvantages

  1. Amenities: Neighbourhood amenities like schools, shopping malls and other services may not be complete for years.
  2. Taxes: Such as the Goods and Services Tax (GST) will apply. However, you may qualify for a rebate of part of the GST or HST on homes that cost less than $450,000. For more information about the GST New Housing Rebate program, visit the Canada Revenue Agency website at, http://www.cra-arc.gc.ca.
  3. Extra costs: You may have to pay extra if you want to add a fireplace, plant trees and sod, or pave your driveway. Make sure you know exactly what’s included in the price of your home.

Resale Home

Advantages

  1. Easy access to services: Probably established in a neighbourhood with schools, shopping malls and other services.
  2. Landscaping: Landscaping is usually done and fencing installed.
  3. Extras included: Previously owned homes may have extras like fireplaces, finished basements or swimming pools.
  4. No GST/HST: You don’t have to pay the GST/HST unless the house has been renovated substantially, and then the taxes are applied as if it were a new house.¬†

Disadvantages

  1. Possible redecorating and renovations: You may need to redecorate, renovate or do major repairs such as replacing the roof, windows and doors.