I live in BC here in Canada. as an owner builder I have the approved exemption from the new home warranty program. The problem that I have come up against is that the bank is asking for new home warranty for mortgage purposes. But as an owner builder I am given an exemption, in lieu of the warranty. In fact, I can not provide new home warranty unless I were a licensed builder, which I am not.
At least that is my understanding
There must be owner builders out there that have had to deal with this situation….what did you do?
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This might give you a starting point. In the USA we can buy a warranty on an existing house as new owners to cover things failing. I think its more of an insurance type of thing. Talk to a real estate broker/sales person and this might get you what you need.
Thats a warrentee the seller "has" to give covering you for a year but can give the new owner $500 to avoid this as an option for the seller.The secret of Zen in two words is, "Not always so"!
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He is talking about a NEW HOME WARARANTY.Not what is sold for home resale, which is not a warranty as such, but a maintance agreement.A NEW HOME WARRANTY is much different. I don't know all of the terms, but they typically (in the US) include things like structural defects for 10 years. And I think some others for 5 years.Don't know if they even cover the applicances or the like, which is the the resale warranties cover, but they are covered by the manufactures warranty anyway for the first year.And with 10 year coverage for BUILDER'S DEFECTS I am sure that they qualify the builder so that an owner builder could not get it.
Who are you working with a the bank, a clerk or a VP of lending?
If it is a low level person then talk to the people that can do a waver.
Try other lending instituions.
I have no idea if there are either any owner builder groups (including forums) that service Canada or not. They would more likely know.
And there are OB "consulting" companies in the US, which provide different amounts of aid, one of which is helping get loans. Don't know if there are any in Canada.
On company is UBuildIt.
A representive from them visits from time to time. Use the Advanced search and find her and email her and see if they have a branch in Canada.
What I am talking about is indeed the "New home warranty" which is a ten year period which covers builders and material defects.
Im dealing with the account manager at my local credit union. she has some authority and has pulled some strings before, but I know that the request came from her supeirior.
I called the HPO and they inist that I don't need the new home warranty. So I'm not sure what to do I'm just about half way thru construction via person creditline financing, but to complete I need to take out a construction loan, and now this is what they have asked for.
as a former gc i aam familiar with the warranty aspect and you have to be a registered builder with the NHWP
You may have a couple of alternatives
1: find a builder who for a fee will register it under his registration to which he pays a yearly fee plus so much per each house most wouldent be interested
2: get hold of a broker as they know who wants what
3 : with money being cheap these days why stick to only one lender in your quest
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dont dance with the girl giving you the runaround get one that wants you
I built into Ontario, and didn't run into this specific situation, but I did discover there was a huge difference between banks and even between branches of the same bank when it came to dealing with owner builders. Rural banks were definately easier to deal with. If you haven't already, check other banks / mortage companies to see what they require.
I also discovered that branch managers are able to make a lot of "rules" disappear that lower level employees at the banks insisted had to be followed.
Thnks for the info guys... I'll tell her to make it work. I feel much more confident now knowing that there are options