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📊 Market Monday — Bank of Canada Update
Real Estate Blog

📊 Market Monday — Bank of Canada Update

🔹 Current Rate: The Bank of Canada is holding its key overnight interest rate at 2.25%. There hasn’t been a hike or cut in the most ...

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Buying Vacant Land vs. Land With a Home: What Buyers Need to Know
Real Estate Blog

Buying Vacant Land vs. Land With a Home: What Buyers Need to Know

If you are considering purchasing land, one of the first questions to understand is how financing works. Buying vacant land is very ...

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New property listed in Thorburn, Airdrie
New Listings

New property listed in Thorburn, Airdrie

I have listed a new property at 113 Thornleigh CLOSE SE in Airdrie. See details here Welcome to this fully developed 4-bedroom, 3.5-bath ...

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New property listed in Copperfield, Calgary
New Listings

New property listed in Copperfield, Calgary

I have listed a new property at 219 Copperfield LANE SE in Calgary. See details here Welcome to this charming 2-bedroom, 2.5-bath townhome ...

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Buying Vacant Land vs. Land With a Home: What Buyers Need to Know

If you are considering purchasing land, one of the first questions to understand is how financing works. Buying vacant land is very different from buying land with an existing home, especially when it comes to mortgage approval. Knowing these differences upfront can help you plan, budget, and avoid surprises.

Financing Vacant Land

Vacant land is considered higher risk by mortgage lenders because there is no livable structure securing the loan. As a result, financing is more restrictive.

What buyers should expect:

  • Higher down payment requirements
    Typically 25%–50% down, depending on zoning, location, and servicing.

  • Higher interest rates
    Rates are usually higher than standard residential mortgages.

  • Shorter amortization periods
    Often capped between 15–25 years.

  • Zoning and land use verification
    Lenders need confirmation of how the land can legally be used.

  • Access and servicing requirements
    Legal road access and utilities matter.

  • Appraisal based on land value only
    Future build potential does not factor into the appraisal.

  • Fewer lender options
    Many major banks do not finance raw land, so buyers may need credit unions or alternative lenders.

In some cases, lenders may also ask about future building plans or timelines.


Financing Land With an Existing Home

When land includes a home that is livable and meets lender standards, financing is much more straightforward.

What buyers can expect:

  • Lower down payment options
    As low as 5%–20%, depending on the buyer’s situation.

  • Standard mortgage terms
    Amortizations up to 30 years.

  • Lower interest rates

  • Appraisal based on the home and land together

  • Traditional mortgage qualification
    Income, credit, property taxes, and insurance apply as they would with any residential purchase.

Even if the buyer plans to renovate or redevelop later, having a livable home in place often allows access to better financing terms.


Buying Land to Build: An Important Note

If your plan is to buy land and then build, this typically involves:

  1. Financing or purchasing the land first

  2. Applying for a construction mortgage, which releases funds in stages during the build

Construction financing comes with additional requirements, including approved plans, contracts, and budgets.


The Bottom Line

  • Vacant land requires more cash upfront and comes with stricter lending rules.

  • Land with a home is easier to finance and offers more favorable mortgage terms.

  • Understanding these differences early helps buyers make confident, informed decisions.

If you are thinking about purchasing land or a property with redevelopment potential, speaking with a real estate professional early in the process can help you understand your options and avoid costly missteps.

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New property listed in Thorburn, Airdrie

I have listed a new property at 113 Thornleigh CLOSE SE in Airdrie. See details here

Welcome to this fully developed 4-bedroom, 3.5-bath home, ideally located on a quiet street in the highly sought-after community of Thorburn. Thoughtfully designed and exceptionally well maintained, this property offers a rare private elevator (installed in 2020 and professionally serviced every two years), making it an excellent option for multi-generational living or enhanced accessibility. Situated on a large lot siding onto an alley, the home is filled with natural light. The main level features a convenient 2-piece bathroom, a private laundry room, and a beautifully updated kitchen complete with brand-new white appliances accented in rose gold, quartz countertops, a large island with seating, and a corner pantry. The sunny breakfast nook is surrounded by windows overlooking the spacious backyard, while the inviting living room is anchored by a cozy gas fireplace. Upstairs, you’ll find two generous bedrooms, a full 4-piece bathroom, and a spacious primary retreat. The recently updated primary bedroom includes a spa-inspired ensuite with a large tiled shower, corner soaker tub, and walk-in closet. The fully developed basement offers excellent versatility with space for a home gym, a dedicated entertainment area, a 3-piece bathroom, and a fourth bedroom—ideal for guests or teenagers. The private elevator provides convenient access to all three levels, offering true barrier-free living for those who need it or simply appreciate the added comfort. Additional updates include a new hot water tank (2020). Ideally located with easy access to major roadways, within walking distance to local amenities, and situated in the desirable Tri-School area, this home truly has it all. Be sure to view the Virtual Tour for interactive floor plans, high-definition photos, and a complete room-by-room walkthrough. A rare opportunity—don’t miss it.

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New property listed in Copperfield, Calgary

I have listed a new property at 219 Copperfield LANE SE in Calgary. See details here

Welcome to this charming 2-bedroom, 2.5-bath townhome located in the family-friendly community of Copperfield Village—an ideal opportunity for first-time buyers or investors seeking low-maintenance living. Conveniently situated just steps from public transit and within walking distance to parks, schools, and local amenities, this well-located home truly checks all the boxes. Upon entry, you are greeted by a bright and open foyer featuring durable tile flooring and direct access to the single attached garage. The upper level boasts a spacious and inviting living room with soaring ceilings and access to a private back patio that opens to street level—perfect for relaxing or entertaining. A few steps up, the open-concept kitchen and dining area showcases maple cabinetry, black appliances, a pantry for added storage, and a second balcony off the dining space. This level is complete with a convenient 2-piece powder room and a laundry room equipped with upper cabinetry for extra organization. The top floor offers two generously sized primary bedrooms, each featuring its own walk-in closet and private ensuite bathroom—an excellent layout for roommates, guests, or shared living. The finished basement adds valuable additional living space, ideal for a recreation room, home office, or gym, along with ample storage. With easy access to major roadways and all amenities nearby, this well-maintained home is a must-see and won’t last long. Please check out the VIRTUAL TOUR LINK for hi-tech interactive floor plans/hi-def photos/virtual tours where you can take a "walk" throughout all rooms of the property.

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