One of the biggest questions that's on a lot of people's minds is how long they should stay in their current home and continue to build up their Mississauga home equity before investing in a new home. In many cases, the answer is approximately 5 years. This gives you enough time to build up sufficient equity to cover the costs of closing on the home while still having extra equity available to make the purchase affordable.
When you're buying a new home there are certain expenses that will need to be covered including legal fees, moving costs, the fee to submit an application for the mortgage, the cost of hiring a home inspector etc. It's important to make sure that you have these costs covered so that you don't end up losing money in the transaction.
Across Canada, move-up buyers make up a large proportion of the real estate sales. Here in Mississauga, our office deals with many families and individuals that are ready to take the next step forward and invest in a bigger and better property. When the timing is right, you'll know it, and it's best to dive right in and get started on the process right away so that you can start building up equity in your new property.
Once you have gotten your feet wet in the real estate market here in Mississauga, and have made your first home purchase, it's a lot easier to take the next step forward to buy your second. While you have been making your mortgage payments faithfully, you have also been proving yourself to be a reliable and trustworthy mortgage holder.
When you first applied for a home loan you had to go through quite a process in order to prove to the lending institutions that you were worthy of one. The second time around is no problem as long as you have been making your mortgage payments on time every month. The hassle that you may have had to go through to get your first mortgage will no longer be an issue. It's a lot easier to step up to your second home than it was to make the giant leap forward to buy your first.
Timing is everything when it comes to real estate. If you need any help deciding whether now would be a good time or not to reinvest your Mississauga home equity into a new home, talk to one of our real estate experts. Sometimes it's time to wait while at other times it's best to make the decision to move forward into a better property.