If you’re a first-generation home buyer in Brampton, you might feel like the dream of becoming a homeowner seems unreal. While it’s true that having parents who are homeowners in Canada certainly helps, I am here to motivate you that it can be done without any help from your parents. Most immigrants who come to Canada start out from scratch. By becoming a homeowner, you’ll be able to create generational wealth and create financial freedom for your kids and grandkids.
Main barriers to homeownership in Brampton:
- collecting down payment
- no financial support from parents
- extremely competitive real estate market in Brampton
- low inventory, high demand for semi-detached and detached homes
- credit score
Here’s my advice for first-generation home buyers in Brampton:
1. Evaluate your current financial situation
When you sign a rental agreement, you only commit to paying the monthly amount for a year or two. When buying a home in Brampton, you commit to 15-30 years of monthly payments. We all know how uncertain life can be, so it’s essential to evaluate your current financial situation.
Monthly mortgage payments will replace your rent. It could be higher or lower than what you’re currently paying. Create another section for new expenses including utilities, maintenance fees (only for condos), and home renovation.
2. Get pre-approved for mortgage
As a first-generation buyer, you are competing against first-time home buyers with a sizable down payment help from their parents and second or third-time buyers with 20% down payment. To make the home seller believe that you’re a serious buyer, you’ll need to provide a mortgage pre-approval document.
Another important reason to get pre-approved is to assess your home affordability. It’ll narrow down your search and give you a clear budget for house shopping.
3. Reach out to a realtor in Brampton
If you want to buy a house in Brampton, you need a local realtor who has in-depth and unbiased knowledge and experience in Brampton’s real estate market and neighbourhoods. I am happy to help you in your journey of becoming a homeowner in Brampton. Please reach out to me today for a free, no-obligation phone or in-person consultation.
4. Make a house shopping checklist
Don’t know where to start? Let me ask you a question : What does your dream home look like to you? There’s no right or wrong answer for this question. For example, someone’s must-have would be an open living room, a huge walk-in closet, and a sunroom. Divide your house shopping checklist into must-haves and wants.
5. Don’t feel defeated
Competing in a seller’s market with a limited down payment means you’ll be outbid several times. But that doesn’t mean you won’t ever become a homeowner. With my expertise, I’ll help you avoid unnecessary bidding situations and be prompt about putting in offers when a new property is listed.
The journey ahead is long but it is a fruitful one. Be patient and create a strong buyer portfolio. You can also consider pre-construction or new construction homes in Brampton. I’ll love to walk you through different incentives and housing options available to you in Brampton.
Please contact me today!