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The Infill Housing Process

Family in their new home

Infill housing is a great option for homeowners who would like to have more control over the construction of their home, and who are interested in living in a more established neighbourhood, as opposed to a new subdivision.

Infill housing means repurposing land in older areas with residential housing or older homes are torn down and replaced with new homes.

Infill housing allows you to live in an established community with amenities such as retail stores, schools and greenspace.  As they say, the three most important items to consider when buying real estate are location, location, and location.  Infill housing more often than not can exceed your location needs and provide the benefit of a newly designed home.

If you are interested in infill housing, there are several steps to follow before construction can begin:

  • Obtain building permits and meet City of Winnipeg building and zoning requirements before purchasing a vacant lot.
  • Meet with your solicitor to understand what restrictions may apply and if you are able to build the home you want on the proposed lot.
  • Seek out a qualified and reputable contractor. There are many home builders that specialize in this type of work. Some home builders have made arrangements with land developers to help customers move through the initial steps more easily.
  • Meet with Cambrian Credit Union to discuss your budget and plans for the site. We can arrange for the mortgage financing using a builder’s mortgage tailored to the various stages of construction. This is a critical to ensure sufficient funds are available and paid based on verified stages of construction.

It is important to do your research up front to understand what your budget will get you, as well as potential additional costs.

Buyers should work closely with a Cambrian Lending Specialist to approve necessary funds, and make sure the funds are set aside consistent with the Builder’s Contract. This will alleviate delays and ensure both buyer and contractor are able to meet the terms of the contract.

Buyers must be prepared for a slightly longer process, as obtaining land approvals and permits can take several months. During the process, you may need to continue to live in your existing home, or, if you have already sold your home, a month-to-month apartment or home rental is a good option.

Buyers who are interested in infill housing should have at least a 20% down payment. These type of mortgages require a lot of pre-planning and it is important to have funds through the different phases of construction. You may run into difficulties if you have a down payment of less than 20%.

If you have a smaller down payment, or are looking for a less hands-on experience, you can consider a turnkey purchase from an established builder. This will give you all of the benefits of a brand new home, without the need to be involved in the intricacies of the building process.

For more information about infill housing mortgages, contact your local branch.