Request a Callback via The DCANS Contact Centre Platform.
Max. Rate: 12% p.a.
incl Cedi Mortgages
Repayment Period
Up to 30 years
No Upfront Fees
T&Cs Apply

New Build Home Warranty

Whilst you’d expect a new build property to have fewer issues than an older building, it doesn’t mean that you won’t encounter any problems during your first few years living there. Our mortgages come with 5 year new build warranty for all homes bought from any of our in-house home providers and pre-approved external developers. This is contracted in the Purchase Agreement, without having to secure a separate warranty from an external provider. However, all prospective mortgage homebuyers with homes from external providers must secure their own new build home warranty and insurance.

The DCANS New Build or New Home Warranty is a 5-year insurance policy for newly built or converted properties. Even though they protect buyers of new build homes from structural defects, they are actually taken out to guarantee the quality build. During the first 2 years of the buyer living within the property, the warranty ensures that the developer is responsible for remedying any structural defects found.

 

DCANS NEW HOME WARRANTY

Our in-built new home warrant is structured as a Developer & Builder Warranty' incorporated in the Purchase Agreement. New home warranties are designed to offer buyers peace of mind that any defects in their home will be put right - If you move into a newly built property, you’re going to want reassurance that the developer will fix any problems that occur. And that’s where building warranties come in. The warranty is split into 2 periods:

• The Defects Insurance Period (first 2 years)

• The Structural Insurance Period (years 3-5)

 

During your first 2 years of owning the home, the developer will be required to solve any issues and fix any defects such as problems with poorly sealed windows at no cost to you. This is what’s known as the Defects Insurance Period. During this period, it’s advised you highlight any problems found.

Next is the Structural Insurance Period which will begin during your third year in the home. Throughout this period, the builder or developer will only be responsible for major structural problems, such as problems with the foundations, the external render, roof or ceilings, load-bearing parts of the floors. Smaller issues should be remedied by the buyer. This includes all non-structural defects such as problems with your gutters or fixtures and fittings.

 

WHAT DON'T NEW BUILD WARRANTIES COVER?

Typically, weather damage and natural degrading or wear and tear will not be covered by a new build warranty. Any issues that resulted from you not adequately maintaining the property will also not be covered throughout the 5-year warranty.

 

WHAT DO YOU DO IF DEFECTS ARE UNCOVERED?

A number of issues or defects could arise after purchasing a new build property as the building begins to settle and dry out. Condensation is often a common problem for example but, sometimes, issues are found as a result of the home not being built to the standards required by the warranty provider. These types of defects should be remedied by your developer within the first 2 years of owning the property.

If you uncover a defect in your new home, structural or otherwise, you should contact your builder or developer immediately. Keep a record of all communication you have with them regarding this problem, including the dates and times of phone calls and emails. These documents will serve as evidence should you encounter a problem further down the line when getting your builder to address the issues highlighted.

Once you’ve contacted your builder, it should take the correct steps to remedy the defects. It would also be wise to check the excess on your warranty policy whilst this is being arranged.

 

WHAT IF YOU MOVE TO A NEW HOUSE?

If you decide to move house before the 5-year new home warranty expires, it will transfer to the new buyer once the sale is complete. However, if you’ve had work done on the home during your stay there, such as a conversion, it will not be covered by the warranty. You should make this known to the buyer.

 

HOW DOES A NEW BUILD WARRANTY DIFFER FROM HOME INSURANCE?

A new home warranty does not cover everything a traditional home insurance policy would. A new build warranty will only cover problems that are the developer’s fault and for a limited period of time. It does not cover you for weather or fire damage, for example.

Home insurance covers risks that could damage your property, protecting both the building and its contents. Every home should be insurable but the cost will vary significantly depending on the type of property and the company you’re insured with. However, as with a new home warranty, the structural integrity of the home will be the most vital component of the insurance policy.

If you’re applying for a mortgage to purchase the home, your lender will likely require you to have buildings insurance in place, so it’s worth organising in advance.

 

CAN WARRANTIES AFFECT MY MORTGAGE APPLICATION?

They can do. It’s a condition of most mortgage applications that a warranty must be in place if you’re buying a newly built home.

 

SHOULD I TAKE OUT HOME INSURANCE TOO?

Yes you should. Aside from the fact your mortgage lender will more than likely require you to have home insurance in place, it’s just good sense to protect your investment. The new home warranty only covers problems that are the builder’s fault. If your home floods because of bad weather or is damaged in a fire you won’t be covered.

 

BENEFITS

Most at times, homebuyers complain of poorly constructed real estate houses, but that obviously cannot be said of mortgaged houses - The situation will obviously be different if not buying the house with a mortgage as no mortgage lender worth their salt would not knowingly finance a structurally-defective house.

However, our integrated multi-year new home warranty provides an added on protection for homebuyers, among many other benefits. 

 


 

Related Pages

No Upfront Fees

Applicable Fees & Charges

• No Closing Cost Mortgages

No Deposit Mortgages

Fixed Rate Mortgages

All Residential Mortgages

All Commercial Mortgages

MORTGAGES ARE SECURED AGAINST YOUR PROPERTY. YOUR HOME (OR COMMERCIAL PROPERTY) MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBTS SECURED ON IT - REPAYMENT ASSISTANCE PROGRAMME AVAILABLE FOR QUALIFIED CUSTOMERS. ALL APPLICATIONS ARE SUBJECT TO STATUS AND OUR LENDING CRITERIA - THIS MEANS THAT THE AMOUNT WE WILL LEND YOU WILL DEPEND ON YOUR INDIVIDUAL CIRCUMSTANCES, THE TYPE OF PROPERTY AND THE AMOUNT YOU BORROW.

We are Non-Deposit Taking No Upfront Fee Direct Lenders (not brokers). Using this digital-first platform constitutes acceptance of the terms, conditions and rules that govern our operations, so if you disagree with any of them in part or in whole, please don't use our services. All loanable funds are private patient capital from dedicated sustainable and reliable sources and not sourced funds from the general public. We're Fully-Compliant: Our home mortgages are structured as Seller-Financed Mortgages (SFM), or International Mortgages or Rent-to-Buy Mortgages, which do not require Bank of Ghana (BoG) regulation. Commercial Mortgages are also not regulated by the BoG. Prospective mortgage applicants are not restricted to buy a home from our internal partners DCANS Properties or Rent to Buy Ghana or any of our in-house home providers.

© 2022 DCANS Mortgage, Ghana, affiliated to DCANS Mortgage UK (FCA-Compliant), Patient Capital Providers DCANS Capital Limited (England & Wales, CRN: 07970200) and DCANS Investments Limited (Ghana, CRN:) and Osei Family Office (SFO), Proprietary Trading Firms DCANS FX and XAU79 and Crypto81, BNPL Providers DCANS Pay (Ghana) and Quid Pay (UK), No Upfront Fee Non-Deposit Taking Direct Platform Lenders Sikamaster Loans (Ghana) and Quidmaster Loans (UK), UK-based Remittance Platform to Africa & Beyond Moneyafrique, TDG Startup Ecosystem Platforms GhanaStartups.org and UKStartups.net and EUStartups.net and Groupwide IHB DBL UK (England & Wales, CRN: 09012597) , are all part of the AML-Compliant TDG GLOBAL CREDIT SYSTEM of The DCANS Group (TDG) Limited (England & Wales, CRN: 12645872, VAT #: GB 157 9161 82), but dual-headquartered in Ghana & the UK.

Legal & Compliance Provided by TLA Firm & Ghanaian Partners. For more details, see Regulation & Compliance. This platform is securely powered by DCANS and Doctopus (in-house information & data security platform) & Promoted by TDG Media Ventures.