Financial Readiness
Start by assessing your financial situation, including your budget, savings, and credit score. Determine how much you can afford for a new home by calculating the amount of equity you have. Equity is the difference between what your home is currently worth and your remaining mortgage balance, which can be used as a down payment for your new home. It’s also important to get a href=”https://mortgageinnovators.ca/good-pre-approval-means/”>pre-approved before you start looking at homes. A pre-approval locks in your rate and helps you understand the price range you should shop within.
Selling Your Current Home
If you’re selling your current home, consider any necessary repairs or renovations that can help increase its market value. It’s important to budget for all the costs involved in selling, such as agent fees, legal fees, and moving expenses. Consult an experienced realtor to determine your home’s market value. We can recommend reputable realtors in Brampton, Toronto, and the GTA. Your realtor can guide you on what renovations or repairs are needed and connect you with reliable tradespeople.
Buying Your New Home
Research the housing market in your desired area and determine your preferences for location, size, amenities, and budget. Explore the neighborhood to ensure it fits your lifestyle. Research local amenities such as schools, parks, public transit, shopping, and entertainment options. Consider your commute to work and proximity to family and friends.
Consider how well your new home will meet your needs over the years. Think about factors such as family growth, work-from-home arrangements, and accessibility as you age. Choosing a home with your future in mind can save you from needing to move again in a few years.
Your real estate agent will help you find suitable properties that meet your criteria. Attending open houses is a great way to get an idea of the type of home you want. Knowing whether you’re in a buyer’s or seller’s market can influence your timing, offer strategy, and negotiation power.
Once you find a home, ensure your offer is “conditional on financing” and have a professional inspector evaluate the home’s condition to assess any potential issues or repairs.
Ability to Port Your Mortgage
Check if you can port your mortgage. Porting allows you to maintain your current fixed-rate mortgage terms, saving you from early exit fees and allowing you to keep a lower rate if you have one. If you need to get out of your fixed mortgage, your lender may impose a penalty based on the interest rate differential (IRD). This penalty considers the difference between your original rate and current rates for the remainder of your term. If you require a bigger mortgage, you may be able to blend your existing rate with the rate offered for the additional money needed. Porting is often unavailable for variable mortgages, which may require you to break your existing mortgage and incur a 3-month interest penalty.
Bridge Financing
If there is a time gap between the sale of your current house and the purchase or closing of the new home, you may need bridge financing to cover the interim period. Rakhi can help you explore bridge loan options and understand the associated costs.
Home Insurance
Protect your new home by arranging proper insurance coverage from the moment you take ownership. Shop around for competitive rates and coverage options, and consider bundling your home insurance with other policies, such as auto insurance, to potentially save on premiums.
Customized Mortgage Solutions
Every homebuyer’s situation is unique. Rakhi Madan can help you evaluate different mortgage products, such as fixed vs. variable rates, terms, and amortization periods, ensuring you choose the option that best supports your specific needs and financial goals.
Get in touch early! Rakhi Madan, the top Mortgage Broker in Brampton, is here to provide valuable guidance throughout selling your current home and buying a new one. Rakhi will assist with your mortgage pre-approval, explore all your mortgage options with you, coordinate timelines, and navigate the paperwork and negotiations, ultimately securing you the best mortgage for your future home!
