Nowadays, more and more Canadians are choosing rural living for its affordability, seclusion, and sense of independence that comes from owning a home away from populated areas. That said, financing a rural home can be a different ballgame from buying in an urban area. Homebuyers considering a property in Georgetown, ON should know the specifics of financing rural properties, and the available options for doing so.
In this article, we will provide buyers and sellers of rural homes in Georgetown with the essential information they need to be aware of when financing a rural property. From understanding what properties are considered rural to the various types of financing available and the best mortgage brokers in the area, we’ll cover it all.
#### What is Considered a Rural Home in Georgetown?
The term “rural home” basically describes any residential property that lies beyond the boundaries of a city or a town in the outskirts of the community. In the case of Georgetown, rural property is any home that lies beyond the boundaries of the town. It can be a single family dwelling, a farm, a condominium or mobile home, or an acreage.
It’s important for prospective buyers and sellers of rural homes to be aware of the rules and regulations that often come with rural properties, from zoning restrictions to building codes.
#### Who Can Benefit from Financing a Rural Home in Georgetown?
Buying a rural home in Georgetown can be a great investment for homeowners who want the amenities of city living without the expense. While there are some limitations that come with buying a rural property, there are a number of benefits as well:
– Lower taxes – Rural properties are typically assessed at a reduced rate. This means that homeowners will pay lower property taxes on their rural home.
– Lower insurance premiums – Rural homes generally have lower insurance premiums than those in the city due to the lower risk of theft and damage from natural disasters.
– More affordable – Rural homes in Georgetown tend to be more affordable than those in urban areas, making it a great option for buyers who are looking for a bargain or who want to live in a rural area.
– A positive lifestyle – Rural living provides an opportunity to experience a sense of independence and fulfillment that comes from living off the grid and living off the land.
#### What Types of Financing are Available for Rural Homes in Georgetown?
When it comes to financing a rural home in Georgetown, buyers have a number of options to consider. Potential buyers should speak with a mortgage broker to discuss the best options available and determine the most suitable type of financing for their particular situation.
##### Conventional Mortgages
The most common type of financing for rural homes in Canada is the conventional mortgage. This type of loan allows you to borrow up to 80% of the purchase price of the home, and the terms of this loan can be anywhere from 6 months to 25 years. You’ll be required to pay the down payment upfront and the interest rate on a conventional mortgage is typically higher than that of other types of mortgages.
##### Home Equity Line of Credit
Home equity lines of credit (HELOC) allow you to borrow up to 80% of the value of your equity in your home. Interest rates for HELOC’s vary depending on the balance you owe and the length of the loan term.
##### CMHC Insured Mortgages
CMHC insured mortgages provide up to 90% of the purchase price of the home, making them a great option for rural homebuyers. CMHC (Canadian Mortgage and Housing Corporation) is a government-backed agency that is insured by the federal government, so the interest rates on an insured mortgage tend to be lower than those of a conventional mortgage.
##### Specialized Loans
In some cases, buyers may be able to qualify for specialized loans that are designed specifically for rural homebuyers. This includes loans for agricultural land and homes, as well as mortgages for log cabins. These types of loans may require additional paperwork and may have more stringent requirements than other types of mortgage loans.
#### Best Mortgage Brokers in Georgetown
Finding the right mortgage broker is essential for financing a rural home in Georgetown. It’s important to shop around and talk to a few different brokers to find the one that best suits your needs. Some of the best mortgage brokers in the area include:
– JVL Brokers: Known for their commitment to customer service, JVL Brokers specializes in rural home mortgages and works with a range of lenders to get buyers the best rates.
– Robertson Financial Group Inc.: With over 25 years of experience in the industry, Robertson Financial Group provides excellent service and access to a range of lenders across Canada.
Buying a rural home in Georgetown can be a great investment – however, it does require a unique approach to financing. By familiarizing oneself with the types of financing available, the best mortgage brokers in the area, and the rules and regulations that come with buying a rural property, buyers and sellers can ensure they get the best mortgage terms possible.
**Q: What are the advantages of buying a rural home in Georgetown?**
A: Buying a rural home in Georgetown offers many advantages, including lower taxes, more affordable prices, and a positive lifestyle. It also allows buyers to experience a sense of independence and connection to nature that can’t be found in more urban areas.
**Q: What types of financing are available for rural homes in Georgetown?**
A: Possible financing options for rural homes in Georgetown include conventional mortgages, home equity lines of credit, CMHC insured mortgages, and specialized loans such as agricultural and log cabin mortgages.
**Q: How do I find the best mortgage broker in Georgetown for my rural home purchase?**
A: It’s important to shop around and talk to a few different mortgage brokers in the area to find the one that best suits your needs. Some of the best mortgage brokers in the Georgetown area include Tony Sousa and The SousaSells.ca Team, JVL Brokers, and Robertson Financial Group Inc.
**Q: How much money can I borrow when financing a rural home in Georgetown?**
A: The amount you can borrow will vary depending on the type of financing you choose. Conventional mortgages allow you to borrow up to 80% of the purchase price of the home, while home equity lines of credit allow borrowers to borrow up to 80% of the value of the equity in the home. CMHC insured mortgages provide up to 90% of the purchase price of the home.
**Q: Are there any restrictions or regulations that apply to rural homes in Georgetown?**
A: Yes, there are a number of restrictions and regulations that apply to rural homes in Georgetown, including zoning regulations and building codes. It’s important for prospective buyers and sellers of rural homes to be aware of these rules and regulations before they begin the financing process.