Purchasing Home in Ontario is one of the biggest emotional as well as financial decisions especially when you are purchasing a home for the first time. It is one of the most beautiful and memorable experiences of your life. It will remain with you forever. That puts a lot of pressure to make the right decisions at the right time. Statistics shared by Trading Economics in 2018, Home ownership rate in Canada has increased and was 68.55% more than 2% hike from 2017. The statistics shows that the Canada Pricing Index has been showing a growing trend. It has shown a rise of 0.4% hike in the month of July’21 and prices of new houses have increased in a year by 12.2%. The real estate sector is booming and as per analysis done by Trading economic experts the prediction is Canada New housing Price Index will keep growing and expected to hit 112.5 by this quarter end, will rise up to 115.00 points in 2022 and 118.00 by 2023. If you are a first-time home Buyer then it is the right time to invest. As per the forecast, prices of homes will increase remarkably in coming years.

Most important thing you need to check before buying a home is if you are ready for owning an asset or not. Not only emotionally, you have to consider your financial stability as well. If you are a first-time home buyer there is a lot of preparation and precautions you need to take before making the final purchase. It is important to keep yourself updated about the latest market trends, Mortgage rates and lenders and bank rules and regulations. There are a lot of things to understand and analyse for making the right decision. Apart from that you need to be familiar with concepts like first time home buyer mortgage, down payments, closing costs etc. There are a few mistakes that a new home buyer often makes and must avoid at any cost.

Common Mistakes that New Buyers must Avoid:

• Taking loans and loan instalment lightly.
• Not evaluating your savings and debt correctly.
• Not checking necessary terms of eligibility of banks and private lenders.
• Overestimating your budget.
• Taking a housing loan more than your estimated budget.
• Not considering additional expenses while budget estimation.
• Lack of background research about current tax rates.
• No awareness about different types of home loans.
• Not taking expert advice or having consultation with a first-time home buyer mortgage broker.

Before owning an asset worth thousands of dollars, it is important that you do all the background work properly. One of the best ways is to identify a first-time home buyer mortgage broker who understands your needs, financials and suggests you best suitable options. Apart from that it is also important to get familiar with the process, rules and regulations related with first time home buyer mortgage Ontario.

Tips for First Time Home Buyer:

• Plan Savings in Advance: It is always best to plan big financial decisions beforehand. The down payment you are going to make will be directly proportional to the amount of money you have saved in advance. Larger down payments lead to lower mortgage loan and insurance premiums and a smaller number of loan instalments. If you have not saved enough, you are in trouble.
• Budget Estimation:Dreaming about a particular type of house and actually buying the same is altogether a different story. Down payment of a home varies from property to property. Depending upon your median income, you will qualify for mortgage and the difference between approved mortgage and house cost will be your down payment. Budget will depend upon your savings that you can pay as down payment for your house.
• Analyse Current Situation of Local Market:It is important to have knowledge about current rate of home purchase mortgage in Brampton and analyse future market trends. It is possible that the interest rate will increase in future, it will be beneficial if you are prepared for that.
• Additional Cost:There are some closing costs that you have to pay while purchasing a house apart from down payment. It is mostly 3% to 5% of total house cost. It includes costs like Tax for Land Transfer, Fees for Lawyer, Title Insurance and Inspection of the property.
• Select Right Type of House:It is important that while selecting the property you keep in mind your budget limit, neighbourhood and type of house you are looking for. Rates of house depends upon two things, type of house and location. Select a property that fits your budget.
• Prepare Estimate of Your Savings as Well as Debts:It is important to plan your savings and manage your debts in advance. This will ensure that you pay down payment and will be able to pay timely loan instalments.
• Check Your Credit Score:It is important to check your credit score and try to improve it before applying for a home purchase mortgage in Brampton. If your credit score is low then it will be difficult to get a loan from reputed banks or private lenders.
• Take Help of First Time Home Buyer Mortgage Broker:There are various first-time home buyer mortgage brokers in Brampton who can assess your requirement and help you get the best Brampton mortgage rate. They can do all the background work on your behalf and also help you if you have a low credit score.
• Check Mortgage Qualification Rules:You will need a lot of documents while applying for a mortgage. It will be great if you organise them in advance. This will speed up the process.
• Grants or Rebates:Check if you are eligible for any rebate or grants that can help you get your dream house at affordable costs.
• Mortgage Pre-Approval:When you have all the required documents in hand and a decided budget you can apply for Mortgage Pre-Approval without any cost.

Avon financial is a reputed and trustworthy company especially for first time home buyer mortgages. They are market experts when it comes to mortgage for residential or commercial properties and provide financial solutions as per their client’s needs. They guide their clients considering their requirements and budget limitations. Avon financial professionals help their clients in avoiding common mistakes, reducing risks and getting the best mortgage rate in Brampton. If you are looking for a first-time home buyer mortgage broker, you must consider the services of Avon Financial. They always try to match their client’s requirement with private lenders and leading banks of Ontario. They are the best option to consider when your application is turned down by banks.