Are you looking for a top mortgage broker or company in Mississauga? For a mortgage broker like Rush Parikh, he’s probably heard it all. Some of the mortgage stories and urban legends make him chuckle, while others have him believing myths are hurting his clients and impeding their way toward smart borrowing practices. Today, he’s going to assess a few of the most commonly circulated mortgage tales making their way across Mississauga. So let’s separate fact from fiction with him.
The Mississauga Real Estate Bubble That Never Bursts
By far the most enduring urban myth is that we have a real estate bubble in Mississauga and that it will never burst. These stories are often told to explain the seemingly insane prices people are paying for Mississauga real estate on a seemingly never-ending basis. It’s often told by real estate agents who think that Mississauga is so intrinsically desirable (yes, they say it with a straight face) with not much more developable land left that prices are destined for ever-higher enchantment from some housing prices come from heaven fantasy. All of this is nonsense, of course, but done with a straight face. Here’s the reality: not a single retail market on Earth has been immune from corrections.
VERDICT
Wrong! If it’s in a desirable location and there’s not a lot of land available, this will propel prices north in Mississauga, but major economic shifts can still depress values, even if they are just temporary. Buyers should always do their due diligence and ignore the bubble theory.
Twenty Percent Down Payment? Not in Mississauga!
Another popular mortgage myth is that you absolutely must have a twenty percent down payment to buy a home in Mississauga. The logic is that with such high home values, lenders simply won’t take a risk on a smaller down payment. This causes some buyers to drain their savings rashly or compromise on location and home features. Note that you may also consult a residential mortgage agent in Mississauga to understand the down payment fundamentals.
VERDICT
Busted! While a twenty percent down payment is ideal to avoid mortgage loan insurance premiums, most lenders are willing to go as low as five percent for borrowers with strong credit and finances, even in Mississauga. Government-backed programs like the First-Time Home Buyer Incentive can further reduce the down payment need.
If You Blinked, You Missed the Lowest Rates
When interest rates were at historic lows a couple of years ago, there was a narrative that buyers in Mississauga who didn’t lock in a rate in the one percent to two percent range had squandered a once-in-a-lifetime opportunity. This leads some to have unrealistic low-rate expectations or needlessly rush into a purchase out of fear.
VERDICT
Strengthened—but largely not!—yes, rates in twenty-twenty-one were an emergency level that will likely be the generational low for most homebuyers. But rates move in cycles, so yes, they were as of twenty-twenty-two higher than they were at the bottom, but we’ve already ironically seen rates coming off the peak that they were at in twenty-twenty-two. Buying when you’re finally able to, instead of trying to catch the right rate, is the correct play.
Pre-Approvals? They Don’t Mean a Thing in Mississauga
One of the most dangerous myths is that pre-approvals from lenders for house purchases don’t really mean anything, so why bother getting a pre-approval? Pre-approvals are seen as a waste of time because everyone thinks that house prices are already so high and competition is so fierce that the lenders will pull the rug out from under you no matter what.
VERDICT
Pre-approved! A pre-approval is a big deal for a lender; they’ve done their due diligence on your finances and have an obligation to honour the mortgage amount and rate for a finite period of time. When making an offer without being pre-approved, you’re putting yourself at a major disadvantage and creating a greater risk of possible default. To suffice, choose Rushi Parikh when searching for a renowned mortgage broker or company in Mississauga!