Image alt text: a house key is surrounded by papers about buying a home.
If you’re looking at purchasing a home in Mississauga, congratulations! It’s a great place to raise a family that offers a balanced mix of city life and access to nature. If you’re familiar with Mississauga’s real estate market, then you know how popular it is.
So if you want to buy a home in Mississauga, you must be prepared and ready to buy at a moment’s notice. One of the first steps is to partner with the right real estate agent and Mississauga real estate lawyer. You’ll need expert guidance to help you navigate such a competitive market and to advise you on such an important decision.
Keep reading to learn how else you can help yourself become a homeowner in one of Ontario’s hottest markets.
Know Your Budget
It goes without saying that if you’re in the market for a home that you have already saved up for a downpayment. In Canada, the minimum down payment is 5% for a home up to $500,000, however, some mortgage lenders may require more. When the purchase price is over $500,000, the minimum down payment is 5% on the first $500,000 and 10% for the remainder of the purchase price.
Since you need to save up for your downpayment before you’re ready to buy, you need to know how much you can afford to spend on a home beforehand. Calculate your current household budget and estimate a budget for a home within your means. Keep in mind that if you’re buying your first home, you’ll have new expenses as a homeowner, such as costs for general maintenance and repairs, property taxes and home insurance. There are also several closing costs when buying a home that you must factor into your budget.
Get Pre-Approved for a Mortgage
Not only do you need to know how much you can afford to pay for a home, but you also need to know how much money is available to you. Also, getting pre-approved for a mortgage gives you the stability of locking in an interest rate for up to 120 days and helps you now that you know how much your mortgage payment will be.
A mortgage pre-approval, however, doesn’t mean that you aren’t still able to continue shopping around for a better rate.
Having financing and a deposit in place is crucial in a hot market like Mississauga, as you need to move quickly on a home you want.
Stick to Your Budget
Mississauga listings (especially ones in highly-coveted areas) are listed at a lower price to attract multiple offers to start a bidding war so that the property sellswell above the list price. If you look for homes at or near your maximum budget, there’s a chance you will get swept up in the moment when the price starts to climb above what you can afford and pay, and you may end up committing to a home outside of your means because you’ve already got your heart set on it.
Look for homes listed 10% to 20% lower than your maximum, and expect to pay above the listed price for it.
