Mortgage vs. HELOC
Looking to buy a home in Brampton, Ontario, Canada? If statistics and predictions hold true, this should be a banner year for potential homebuyers. With low interest rates, a great supply of houses available and various banks competing to offer the best mortgage rates, the time has never been better to look into home ownership. Continue reading to learn more.
With a population of well over 500,000 people, Brampton is the 9th largest city in Canada and the 3rd largest in the Greater Toronto Area (GTA). Brampton's thriving economy, increased value in homes, low interest rates, and close proximity to downtown Toronto all contribute to making this area very popular for individuals and couples interested in buying homes. Also an attractive feature is that Brampton has its own Rapid Transit System. The area also has many banks scrambling to take advantage of the growing housing market and offer customers the lowest and best mortgage rates and terms.
The housing market in Brampton is doing very well and is predicted to continue on this trend this year, barring any unforeseen circumstances. According to a recent Real Estate Investment Network study, the real estate market in this city is expected to soar in the next couple of years. This includes both buyers and sellers. Additionally, Brampton ranked 5th in a 2011-2015 Top Ontario Investment Towns report. This city has also ranked, for the past several years, among Ontario's top 10 cities in terms of economic growth. With so many positives, Brampton may just be the perfect place to take the plunge and get a home mortgage!
Potential homebuyers should have little trouble finding a bank in or near Brampton with which to obtain a mortgage, as there are several banks and lending institutions in the area. Many aspiring homeowners utilize mortgage brokers because, as part of a network, they have access to all the banks and know which are offering the best rates.
When choosing a mortgage in Brampton, it's important to know what's available. Borrowers have their choice of open mortgages, closed mortgages, fixed rate or variable rate mortgages. The type of mortgage chosen usually is dependent on how borrowers intend to pay and how confident they are in the current low interest rates. With a fixed rate mortgage, you pay the same interest rate throughout the life of the loan, whereas with a variable rate mortgage, the interest rate changes along with the prime rate.
Currently mortgage rates in Brampton are ranging from 2.21% to 3.09% on a variable rate mortgage. Fixed rate 3-year mortgages are featuring interest rates as low as 2.59%, while 10-year mortgages, which are generally higher, are available with a rate of only 4.3%. The current housing market and low interest rates not only make it the perfect time to look into buying, but also make it possible for borrowers to really shop around for the best mortgage.