Best Mortgage Rates in Brampton 2021
Brampton is booming. There is no other way to describe one of the hottest real estate markets in the Greater Toronto Area. Whether you are looking for a semi-detached home or a townhouse, the Brampton market provides buyers with many options for their next house. So, let us jump into it and take a look at the Brampton real estate market and provide you with some much-needed answers to questions we have seen come in from across Brampton on mortgage rates.
The Brampton Housing Market
Brampton is a community situated to the west of Toronto and north of Mississauga in Ontario. Brampton has long been considered one of the many bedroom communities in the GTA and is home to over 600,000 people. Brampton society is quite multicultural and is home to some of the best food in the GTA!
The city itself is home to several large company’s head offices, including Loblaws, Rogers Communication, Canadian Tire, Dynacare, and Coca-Cola Canada. As well, the area is home to the Chrysler Canada assembly plant. Most Brampton residents either work in one of these head offices or commutes into Toronto via the 401, 407 or Go Transit.
Brampton is a great place to grow-up and offers residents a host of opportunities you can only find in the GTA. With great schools, proximity to Toronto and a diverse community, Brampton continues to be one of the top places to live in the GTA.
The Brampton housing market is one of the hottest in the country. With a lack of available inventory and proximity to Toronto, Brampton has become one of Ontario’s most sought-after real estate markets. As per RE/MAX, the average Brampton home will increase in 2021 a further 5% to $876,830. In 2020, the region saw a 14.9% increase, and that is during a pandemic that left many homebuyers waiting to see how the market would react. Although RE/MAX estimates a 5% growth rate, other sources suggest the average home price will meet, if not exceed, 2020 numbers.
A starter home in Brampton is considered a condominium, and those are selling for $500,000+. At the same time, single detached homes are selling for $1,000,000+. A tough market to get into, but for the right buyer, Brampton’s current mortgage rates certainly make buying an attractive option. So, who should you see if you are thinking of buying? A mortgage broker, of course!
Mortgage Brokers in Brampton
When you are looking for a mortgage in Brampton, one of the best places to start is with a mortgage broker. Unlike traditional lenders, mortgage brokers can use and get quotes from multiple lenders at the same time. There is no commitment to a single source and no pressure to secure a mortgage from a company. A broker works for you, and their sole job is to ensure the best possible mortgage rate for you. Their ability to compare mortgage rates is like no other, and their expertise allows them to answer any questions that you may have.
Plus, they are free to use for borrowers—a literal win-win.
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Is it worth getting a mortgage pre-approval?
Yes, it is worth going through the process to secure a mortgage pre-approval.
A pre-approval does a fair amount for you, such as:
Provides you with a locked-in interest rate
When you go through the pre-approval paperwork, you are locking in a rate for some time. Depending on the lender, the provided interest rate will be good for up to four months. This means that your interest rate will not go higher if you close on a home during that period. This gives you the ability to shop around while still being protected by that original locked-in rate.
An ability to waive your financing condition
In a market like Brampton, you want to be as flexible as you can in real estate offers. With a multi-offer market Brampton has, a single condition may impact your ability to close a sale, and you do not want that! This is why pre-approvals are a great tool to help limit the conditions that you need to put in with an offer. A lender already approves you so that you can restrict or even waive the financing condition with confidence.
A pre-approval allows you to figure out your ideal mortgage payment and discover if you have any wiggle room in terms of bidding wars. This information will help guide the real estate process and let your realtor know your maximum payment.
The pre-approval process usually is pretty quick, and most mortgage brokers go through an extensive five bank to complete the process. Remember, you do not have to sign a mortgage with the lender that offers your pre-approval. You are still a free agent and can sign with any lender, no matter the rate. The pre-approved document allows you to guarantee a rate and know what your maximum purchased price is. While you can certainly secure your mortgage with the original lender, make sure to shop around, so you get as close to the prime rate as possible.
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Brampton Mortgage Rates: Frequently Asked Questions
Here are some of the most frequently asked questions we get on mortgage rates, variable rates, fixed rates, and everything else to do with mortgages!
How much can I save by comparing Brampton mortgage rates?
One of the things to know about mortgage rates is that you need to compare them! Every lender will be a little different, and depending on your current situation, not every lender will be the right fit for you.
Lenders base their interest rates on prime rates. However, the fees on top of prime rates are where things differ. For instance, some lenders will match the big five banks on their variable rates and fixed rates. In comparison, other lenders will look to undercut these rates to get your business. Naturally, this a complex industry, and it is why it is suggested that you work with a mortgage broker to navigate the process. From the advertised rate to the actual interest rate that you secure, mortgage brokers are with you every step of the way.
Although we can’t tell you how much you will save when you compare rates in Brampton, we do know that you will save. Remember this simple mantra to find the best rates: shop around, compare, and only sign when you are comfortable with the final number. There are a lot of lenders out there, so do not take the first advertised rate that you see!
Are Brampton mortgage rates higher than other cities?
No, Brampton mortgage rates are not higher than in other cities. Due to the proximity to the GTA and the fact that multiple lenders are located in Brampton, the mortgage rates are pretty competitive.
Mortgage rates are based on several factors, including, but not limited to, competitiveness in the area, the average purchase price, home prices in the area where you bought, along with other factors. As Brampton is a crowded and popular spot, mortgage rates are as competitive as in Toronto or Hamilton. This means that buyers looking to secure a low-interest rate should shop around with multiple lenders. You have options in the city, so use them and guarantee the best rates possible over your amortization term.
What's the difference between variable and fixed rates?
There are two options for mortgages: variable mortgage rates and fixed mortgage rates for mortgage rates.
Variable Mortgage Rates
As the name suggests, variable rates are mortgage rates that change over the loan term and are adjusted periodically throughout the term. Depending on your mortgage provider and the mortgage terms, a variable rate typically adjusts monthly or yearly.
One of the most popular variable rate mortgage products on the market is the 5/1 mortgage. This is a 5 year variable loan that is adjusted once a year.
Variable rate mortgages are ideal for those who do not like to lock-in interest rates and prefer to see how the market adjusts. Before the COVID-19 pandemic, variable rate mortgages were quite popular and gave borrowers the flexibility to avoid locking-in higher interest rates. However, with record low prime rates from the Bank of Canada, variable rates have fallen and are a less popular product for most borrowers.
Fixed Mortgage Rates
As the name suggests, a fixed mortgage rate is an interest rate fixed for the loan’s term. Unlike variable mortgage rates, fixed mortgage rates are locked-in at the time of signing for the agreement’s duration. Most lenders offer a 1 year fixed, a 2 year fixed, a 3 year fixed; a 4 year fixed and a 5 year fixed rate. Although it is possible to get still 10 years fixed, it is a rarity for today’s mortgage providers.
Fixed mortgage rates are a perfect product for those who want consistent mortgage payments during their amortization period. These mortgages are easy to understand and offer borrowers an option to lock in at a low-interest rate for an extended period. During the COVID-19 pandemic, many borrowers did not see interest rates going any lower, and the rate of fixed mortgages skyrocketed.
Which bank has the best mortgage rates in Brampton?
There is no correct answer to this question. The specific rate you will get from one place will differ from another across the road. The reason for this is that lenders use their risk-profiles for potential lenders, and their algorithms adjust and calculate based on information provided by a borrower. Thus, no matter if you use a big five bank or a smaller lender in Ontario, your rates will be a little different each time.
Things such as mortgage term, purchase price, credit score, area the home is being bought in, and other factors come into play. As such, there is no ONE bank with the best rates. Instead, borrowers should shop around and find their ideal mortgage rates in Brampton.
Should I use a mortgage broker in Brampton?
Yes! If you are a first-time homebuyer or have not had to sign a mortgage in a while, working with a mortgage broker is a great decision. Mortgage brokers are experts in mortgages and are a wealth of information about the process and what you will need to sign one.
Mortgage brokers have access to hundreds of lenders and can compare, contrast and get quotes that are not available to the public. From smaller lenders to most of the big banks, mortgage brokers work to find a lender with the best rate for you over the long-term.
However, one of the most significant benefits of working with a mortgage broker is free to use! Mortgage brokers in Ontario charge the lender, not the borrower, and their entire job is to work with you to find a lender that meets your needs. They are not pressured to sell specific lenders and are solely focused on finding that ideal lender. So, you can find a mortgage on your own or trust an expert with years of experience and access to exclusive rates; the decision seems pretty simple to us!