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Brampton is one of the largest cities in Ontario and is a popular place to move to for work. However, it is quickly becoming one of the most expensive, especially when it comes to buying a home. In fact, house prices in Brampton are expected to rise even faster than in Toronto.
While most people need a mortgage to buy a house in Brampton, the rising prices mean that finding the right mortgage for you is more important than ever. And with so many options and offers out there, finding the best one isn’t always easy.
Everyone should avoid these common mortgage application mistakes.
How to Compare Mortgage Offers in Brampton
So just how do you compare one mortgage offer to another to ensure you get the best option for your needs in Brampton? Well, the first and most obvious thing to look at is the interest rate. The interest rate you get on your mortgage will have a huge impact on how much you end up paying throughout the decades of your mortgage. Even a single percentage point difference could equal thousands of dollars more or less that you will be required to pay.
However, the interest rate is far from the only thing to look at when comparing mortgage offers in Brampton. Other things to compare from one mortgage offer to another are:
- The term of the mortgage
- How long the amortization period is
- The existence of any prepayment options
- Are there any penalties within the agreement?
- Is the mortgage closed or open?
- Is the interest rate variable or fixed?
You can also compare the bank, lender, or broker you are working with in Brampton. For example, some mortgage providers or brokers in Brampton have years of experience and a great reputation, while others are relatively new or simply don’t have the proven track record. So be sure to do your research on the various providers you are considering before opting to go with one over another.
Interested in what it costs to buy a house in a major Canadian city? Click here.
How to Save For a Down Payment
No matter what kind of mortgage you have or are going to get, you will need some sort of down payment. However, you’ll likely want to put as much money down as possible. See, having a larger down payment not only makes it easier to qualify for a mortgage, but it also lessens the amount that you actually have to borrow. Having a large down payment can even help get you access to better interest rates and lead to smaller monthly payments. As a result, you want to have as large of a down payment as you can afford before getting a mortgage. But how do you go about getting and saving a large down payment? Thankfully, there are plenty of different things that you can do, including:
- Lower your spending
- Sell some items or cancel some subscriptions
- Automatically save a portion of each paycheque
- Use your TFSA or borrow from your RRSP
- Pay down your debts so you will have more to put towards a down payment
These are just a few of the many different things you can do to increase the size of your down payment. There is no right amount of time to save for a down payment or a right amount that you need to save up. That will depend on your budget, the house you want to purchase, and how long you have to save up.
What about borrowing your down payment? Find out more here.
Hidden Costs of Buying a Home in Brampton
While your mortgage and the payments associated with it are the largest costs of buying and owning a home, it is far from the only thing you will be responsible for paying. There are many extra and sometimes-hidden costs that go into buying a home in Brampton. These include:
- Taxes (school taxes, land transfer taxes, property taxes and many more)
- Interest and interest adjustment
- Cost of a home inspection
- Moving costs
- Legal and real estate agent costs
- Maintenance costs
As a result, when you are making a budget for the home purchase in Brampton, be sure to include these things in it. They can really add up and make buying a home more expensive than you would have thought otherwise. The last thing you want to do is have enough to pay the mortgage and down payment, only to forget about these other costs and have to borrow additional money.
Do you know what all the closing costs in Ontario are? Check this article out.
Helping You Find a Great Mortgage in Brampton
Loans Canada can help by matching you with the right mortgage professional to assist you with purchasing the home of your dreams.
Note: Loans Canada does not arrange, underwrite or broker mortgages. We are a simple referral service.