Want To Buy A Peel Region Home For Your First Time?

The Canadian real estate market has experienced an unprecedented sell-out in the last two years. Prices have risen to unprecedented levels, bidding wars have turned intense, and many potential first-time homebuyers have been priced out of the market. The winds have started to calm down red-hot selling conditions and create a window for buyers looking to buy their first home. Inflationary environments are characterized by falling home prices due to rising interest rates. This has been particularly true for entry-level properties. Brampton has been more affordable than ever and has the highest rate of return of any urban center in Peel Region. This is great news for buyers, but first-time home buyers have multiple government programs to assist them.

Team Arora says, “Affordability will continue to be our greatest challenge entry GTA” Greater Toronto Area is a very important place. I cannot stress enough how important it is for first-time buyers. The rest of the market will stall if they don’t purchase. As prices have slowed down a lot since February 2022’s peak, I am confident that investors and buyers will gradually re-enter the market.

This guide will help potential homebuyers to reach their first home milestone in Peel Region.

Make the most of the cooling market

Peel Region’s housing market has been difficult. If you have been house hunting over the past few years and had to put off your plans, this is the time to look at the changing landscape. Although interest rates are rising, the drop in home prices is making it easier for first-time buyers to get into markets that were previously hard to access. This is the right time to get involved (or re-engage). Another problem is the very high rents and low vacancy rates. Rents can be very costly and difficult to find. If the price is reasonable, it’s better to buy in this market.

Do the math

To get clear guidance on your financial situation and how to pay your mortgage, speak with a mortgage professional. Even if you have done this in the past few years, it is still a good idea. A plan is just taking one step.

First-time buyers have many options when it comes to down payments. Learn how much you will need to put down for a down Payment on a property. Although 20% is the recommended amount, some experts suggest that buyers put down as low as 5%. (See the table below for more details). .

Price of purchase Minimum downpayment
Below $500,000 5% of your purchase price
From $500,000 to $999.999 5% of the $500,000 first payment + 10% for the $500,001-$999,999 portion
$1 million plus 20% off the purchase price

While it is a major hurdle, covering your down payment is not the end of the story. Talk to a professional about the average cost of a home inspection, closing costs and the cost associated with moving. Make sure to have at least three months of income in savings for emergencies, repairs and property taxes.

View government initiatives

The federal and provincial governments introduced tax rebates and other programs in an effort to ease some of the difficulties faced by first-time buyers. More initiatives are expected this year. Peel Region buyers now have access to the “Affordable Homeownership Program”, a county-specific program for renters with low-to-moderate incomes who want to buy their first home. You can read more about the program here: https://www.peelregion.ca/housing/development/affordable-housing-incentives/

The Government of Canada offers a First-Time Home Buyer Incentive to help first time buyers. The First-Time Home Buyer Incentive, offered by the Government of Canada, provides a 5-10% discount on a home’s price for a down payment. This helps lower mortgage carrying costs and makes owning a home more affordable. You can learn more about this initiative here: https://www.placetocallhome.ca/fthbi/first-time-homebuyer-incentive

Talk to a real estate expert

It’s easy for people to become overwhelmed when they’re trying to buy their first home. That’s why it is important to seek out housing professionals before making major real estate decisions. A professional Realtor(r) will be able give you guidance on the best type of home and recommended neighborhoods to consider. We at Team Arora are always available to answer any questions you might have about real estate, especially if it’s your first time buying or selling.

Get in touch with us today to discuss your real estate goals.

 

Mississauga Location

268 Derry Rd W Unit 101, Mississauga, ON L5W 0H6

Brampton Location

2 County Court Blvd #150, Brampton, ON, L6W 3W8

Halton Hills Location

23 Mountainview Rd S, Georgetown, ON L7G 4J8