First Time Home Buyer in Brampton

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Getting a home for your family in Brampton may be one the best decisions you can ever make. It’s an excellent way to secure your financial future while building credit and equity in your mortgage payments. On the plus side, owning a home places you in more control, as you will never experience a rent increase or renew your lease from your landlord.

However, purchasing a home is a challenging decision to make. You may need guidance to put your best foot forward while purchasing a home in Brampton for your family. The internet may provide valuable information – only when you know what you’re looking for. At Mohit Grover, the satisfaction and well-being of our clients is our top priority. We always prioritize your needs and keep your best interest in mind while working with real estate agents, lawyers, credit unions, and others. Our services include buying new properties, refinancing, transferring, renting to own, obtaining home-equity loans, and consolidating debt.

So, what is the essential information every potential homeowner should know?

Down Payment

One of the first steps to planning towards buying a new home in Brampton is a down payment. You may have heard the term before and wondered what it means.

A down payment is an initial cash you’re willing to disburse towards buying your home. It isn’t easy to secure a mortgage without a down payment in Brampton and the whole of Canada.

The Canada Mortgage and Housing Corporation (CMHC) states that intending home buyers must offer a 5% down payment for homes under $500,000 and 10% for homes over $500,000. Thus, if you’re interested in buying a property priced at $350,000, you’d need a down payment of $17,500 (5%).

Credit Score

Your credit score is an additional factor when purchasing a new house in Brampton. This is a score of your creditworthiness and it influences whether lenders will be willing to offer you a mortgage coupled with the interest rate on the proposed mortgage. To get approved for a mortgage, it is recommended that you have a minimum credit score of 680. While having a good credit score gets you better rates, you can also get pre-approved for a mortgage, even with a low credit score.

Getting Pre-Approved

Another factor first-time home buyers need to know about is the pre-approval process for a mortgage. Once you are pre-approved for a mortgage, you can start looking at homes in Brampton, as you can now make an offer. Your broker or mortgage provider will look at your income, credit score, and outstanding debts (if any) to ascertain your creditworthiness and how much they are willing to provide, including interest.

How Much You Can Afford

Your down payment and pre-approval amount give you an idea of how much your purchase price will be. For instance, if you’ve got a $15,000 down payment and get pre-approved for a $300,000 mortgage, you can make an offer of up to $315,000. However, it is recommended to not purchase a home that uses every cent of your pre-approved mortgage amount and down payments. Other factors will influence just how much you will be able to afford. One common misconception about mortgages is that potential homebuyers assume that the pre-approved amount lenders offer is stable. This isn’t the case in practice – as the figure is only the maximum amount the lender may be willing to offer you for your mortgage payments. Typically, lenders will assess the home in question and ascertain its worth. They might lower the pre-approved amount if the property is worth less than the mortgage amount.

Other costs to consider include the following:

Closing costs. These costs include home inspection fees, property or land transfer taxes, property insurance, and legal fees to facilitate and finalize official documents.
Ongoing costs. It would help if you also planned for ongoing costs such as home maintenance, annual property taxes, repairs, and remodeling.

However, beyond these factors mentioned above, you need a mortgage broker you can trust to facilitate getting you a home for your family. Mohit Grover is a leading mortgage broker helping first-time home buyers to secure funding for the home of their dreams in Brampton and other regions of Canada.

Why Contact Us?

Fast Service

One of our strong points is our ability to provide quick, transparent solutions when you need us. Leaving our customers satisfied is one of our core objectives. Our seasoned mortgage brokers will swiftly guide you through securing your first home in Brampton.

Extensive Consultation

Beyond helping you to secure fast loans for your home purchase, we also provide industry and insider knowledge and expertise. With our tailored assistance, you can make the best real estate choice for your needs.

Client-centric Services

At Mohit Grover Mortgages, the satisfaction and well-being of our clients is our top priority. We always prioritize your needs and keep your best interest in mind while working with real estate agents, lawyers, credit unions, and others. Our services include buying new properties, refinancing, transferring, renting to own, obtaining home-equity loans, and consolidating debt.