In Canada, the average cost for building a home is around $118-$189 per sqft. The majority of Canadians wish to build their house rather than just purchasing one. It’s because there are several benefits of constructing a house. However, it also comes with some difficulties.

The average cost to construct a detached home in major cities of Canada

As per the Canadian Cost Guide 2020 of Altus Group, the per square foot cost to build a detached house in major cities of Canada is stated below:

• Calgary: $125 to $185
• Vancouver: $145 to $260
• Ottawa: $120 to $195
• Edmonton: $130 to $185
• Montreal: $105 to $180
• John’s: $110 to $145
• Halifax: $90 to $150
• Greater Toronto Area: $115 to $215
• Winnipeg: $125 to $190

Is it possible to obtain a loan for house construction?

Several mortgages are available for self-building a home in Canada. But to purchase land, you have to get another loan that normally has a higher interest rate in comparison to a traditional home loan. The down payment is also huge i.e. between 25 to 30 percent. After that, the construction mortgage covers the construction costs. The terms and interest rates differ from one lender to another. Basically, there are 2 types of the construction mortgage.

1. Completion of construction: Here the loan is transferred upon the completion of construction.
2. Draw/progress-draw mortgage: Here the mortgage borrower withdraws money in parts as the construction progresses.

How much time is required to construct a home?

On average, it takes nearly 10-16 months to construct a home, if construction work is executed as per plan. It doesn’t include any unforeseen issues or delays due to bad weather conditions.

Tips to decrease the construction cost of a home

• Take bids: Prefer taking bids from several builders to choose the best among them. Don’t always rely on the cheapest contractors as they often sacrifice due dates or use substandard material. Do detailed research and select a contractor having outstanding ratings and vast experience in this field.
• Design a small house: The small the house, the less will be the construction cost. Limit the number of bathrooms based on your requirements. Do consider replacement windows prices, door prices, electrical and plumbing costs when designing a house.
• Engage in labor work: You can save on labor costs if you do some of the tasks yourself. Like you can paint your home or can install light fixtures. Also, you can install kitchen cabinets when plumbing work is finished.
• Save on home interiors: A great sum of money can be saved on home interiors. Like you can opt for budget-friendly Calgary windows instead of installing expensive ones.
• Use recycled and reclaimed items: A lot of recycled and reclaimed items can be used for your new home. These items are not only eco-friendly but also saves money. You can find many charitable organizations and salvage shops where you can get items like doors, windows, bathroom vanities, and kitchen cabinets.