How Much Does It Really Cost To Build A House In Canada?

The cost of building a home in Canada varies depending on the size and type of home you want to build, but also the location. Rates vary from province to province and, as you can expect, it’s often cheaper to build a home in a smaller town or village as opposed to a large city.

Here is a rough estimate of what you can expect to pay to build a home in some of Canada’s major cities:

• Calgary: $150 to 300 per square foot
• Edmonton: $130 to 240 per square foot
• Montreal: $140 to $350 per square foot
• St. John’s: $130 to $350 per square foot
• Toronto: $205 to 300 per square foot
• Ottawa: $140 to $375 per square foot
• Halifax: $90 to 150 per square foot
• Winnipeg: $130 to 350 per square foot
• Vancouver: $185 to $350 per square foot

Can You Get a Mortgage to Build a Home in Canada?

Canadians who are looking to build a home in Canada can look into what is called a construction mortgage, or home builders mortgage, which is a type of mortgage meant specifically for those looking to build. Like with a traditional mortgage, you will need to provide proof of income, have a good credit score and have strong savings to start the project. You will also be required to submit plans and cost estimates. Most banks, credit unions and other lenders in Canada offer this type of mortgage.

Building a home in Canada isn’t quite as easy as just throwing together a property. It’s a multistep process.

Buy the Land

The first step is to actually buy the land on which you want to build. In some cases, especially if you are buying land close to an urban area rather than in the countryside, the land itself could be the biggest cost. Land alone can cost you as much as a pre-existing home.

Prepare the Land

Before you can build a home in Canada, you need to ensure that the land it is being built on is suitable. This generally means it needs to be cleared of any trees or rocks. It might need to be levelled before you can set the foundation. You also may have to factor in adding power lines, water lines and drainage systems.

Building Permits

You will require a permit to build a home in Canada. The rates for this vary from municipality to municipality. Some are flat rates and some charge by square foot.

Architecture and Planning

Your costs for this will depend on what you have in mind. If you would like to hire an architect to build and design a custom home for you, you can end up paying about 12% of the total cost of your home on plans alone.

On the other hand, if you have pre-existing plans that just need to be looked over and reviewed, your costs can drop significantly and may only be around $1,000 to $3,000.

The Tradespeople

The people you hire will factor into your pricing. Not only do you need someone to design and build your home but you will also have to hire plumbers, electricians and roofers.

Materials

Finally, the cost of construction and the materials you choose to build the home. Prices can vary a lot here depending on what you want for your home. Things to consider include the foundation, roofing, windows, doors, cabinets, countertops, flooring, landscaping and electrical.

Building your own home comes with a lot of freedom of design which can get very expensive very quickly. So if you are looking to reduce the costs of building a home in Canada, here are a few steps you can take that will help you cut back.

Consider the Location

The cost of the land could be the largest part of your budget, so keep that in mind when you decide where you want to bid. Rural locations tend to be less expensive than urban areas. Also, consider the lay of the land and how much work it will need to be prepped to build a home.

Choose Existing Home Designs

As mentioned above, architecture and planning can add considerable cost to your budget to build a home in Canada. If you choose pre-existing plans rather than designing something custom, you can save yourself thousands of dollars.

Get Multiple Quotes and Take Bids

Shop around for contractors. Get multiple quotes or even have them bid on your project so you can have multiple options. Keep in mind that the cheapest option isn’t always the best so ensure to ask for detailed and in-depth quotes.

Lend a Hand

This tip isn’t suitable for everyone, but if you are handy and have experience in home building or renovations then there may be some aspects of the job that you can take on yourself, rather than paying someone to do it for you.

Reclaim and Recycle

The cost of materials adds up really quickly, so if you can find some things that are used but still in good condition that can be a smart way to cut costs. This can include things like doors, windows, sinks and cabinets.

Consider Your Lifestyle

Your dream home should best suit your needs and lifestyle. So take the time to consider what you need and want out of your home. These priorities are the areas where it’s better to prioritize your budget.

The time it takes to build a home in Canada will depend on several factors including the size of the home, the details of the home, where you are building and how large the construction team is. That being said, with a conventional build you can expect about six months to complete. If it’s a custom build it can take up to 14 months to complete.

Not sure whether to buy or build? Here are a few key points to consider.

• When do you want to move in? Buying will be much faster than building.
• Location: if there is somewhere specific you want to live, it might be easier to build.
• Customization: Do you have a lot of specifications for your house? Or does the idea of making all those decisions overwhelm you?
• What is the market like? If there is a lot of competition, it might be easier to buy land to build on than compete over something to buy.