Now is the perfect time to invest in the Hamilton housing market and with a new home comes a new mortgage.
As the wealth gap in Toronto widens, it becomes more difficult to invest in the city and buyers are turning to cities like Hamilton for smart housing options. Investing in Hamilton allows buyers to capitalize on inexpensive property prices that are unheard of in the GTA.
Mortgage rates in Hamilton usually sit between 2.5% to 4.5%, depending on the lender , length of mortgage, and choice between fixed and variable rates. With an inexpensive housing market and reasonable mortgage rates, Hamilton is becoming a sought after commuter city that young families are happy to invest in!
Investing in a
Hamilton home is a great choice, but with homeownership comes the daunting
mortgage. Mortgages are a necessity for almost anyone buying a home, unless
they can pay for it in full at the time of purchase. Mortgage rates in Hamilton vary depending on
a few important characteristics:
The Lender- The choice between
lending companies, private investors, and banks can ultimately decide your
mortgage rate. Make sure to look into the lender you choose and not immediately
go with the most inexpensive option. This is a company you will be connected to
for years, so you should feel comfortable with them.
The Length- In Canada, the maximum
length of a mortgage is 25 years. Your financial situation will eventually
decide the length of your mortgage, and in turn how much you pay in interest to
your lending company. Lenders can choose to change interest rates depending on
how long you will be paying them back for.
Fixed vs Variable- Mortgages come in
two varieties: fixed and variable. Fixed mortgages have their interest rate and
payments determined throughout the length of the term. Variable mortgages sway
with the market interest rate, meaning they can change at any time. Fixed
mortgages are more popular than variable, but the fluctuating market can mean
less interest over time.
Finalizing a mortgage can be a stressful ordeal, but the joy of owning a home
in Hamilton is worth it in the long run! As Hamilton becomes more popular, the
housing market will boom, and property values go up. Better to invest in
Hamilton now, than be paying much more when investing later.