Buying your first home is one of the most exciting things you’ll ever do. It’s also one of the most expensive decisions of your life — and the mortgage market isn’t exactly designed to make it easy for first-timers.
After 20+ years of helping Ontario families buy their first homes, I’ve seen the same mistakes come up again and again. The good news? Every single one of them is completely avoidable — if you know what to look out for.
Here are the five I see most often.
Mistake #1: Getting Pre-Qualified Instead of Pre-Approved
These two terms sound almost identical — but they’re very different things, and confusing them can cost you a home.
A pre-qualification is a rough estimate based on information you provide verbally. No documents, no credit check, no real commitment from a lender. It tells you approximately what you might qualify for.
A pre-approval is a formal assessment. Your income is verified, your credit is checked, and a lender commits to a specific amount at a specific rate — usually held for 90–120 days. In a competitive market, sellers and realtors take pre-approvals seriously. Pre-qualifications, not so much.
What to do instead: Before you start seriously looking at properties, get a full pre-approval. It takes a little more time upfront, but it means you can make an offer with confidence — and that confidence matters.
Mistake #2: Underestimating the True Cost of Buying
The down payment is the cost everyone focuses on — but it’s far from the only one. First-time buyers are routinely caught off guard by the additional expenses that come with a home purchase.
Here’s what you also need to budget for:
- Land Transfer Tax — in Ontario, this can add up to tens of thousands depending on your purchase price
- Home inspection — typically $400–$600, non-negotiable in my opinion
- Legal fees and disbursements — budget $1,500–$2,500 for a real estate lawyer
- Title insurance — a one-time fee, usually $200–$400
- Moving costs — easily $1,000–$5,000 depending on distance and volume
- Immediate repairs or updates — even a “move-in ready” home usually needs something
A good rule of thumb: budget an additional 1.5%–4% of your purchase price on top of your down payment to cover closing costs. Your future self will thank you.
Mistake #3: Applying for New Credit Before Closing
You’ve been approved. You’re a few weeks from closing. You decide it’s a great time to finance a new car, open a credit card for the upcoming move, or apply for a line of credit to cover renovations.
Please don’t.
Lenders often do a second credit check right before closing. Any new credit applications, new debt, or changes to your employment can trigger a re-assessment — and in the worst cases, a revoked approval. I have seen this happen, and it is not a pleasant experience for anyone involved.
What to do instead: Keep your financial picture exactly as it was when you applied, right up until the mortgage funds. New credit can wait.
Mistake #4: Going Directly to Your Bank Without Shopping Around
Your bank knows you. You’ve banked there for years. It feels natural to start there.
But here’s the reality: your bank can only offer you their products at their rates. They have no incentive to tell you that another lender might give you a better deal. And in most cases — they won’t.
As an independent mortgage broker, I shop your application across dozens of lenders — banks, credit unions, trust companies, and private lenders. That competition works in your favour. Most of my first-time buyer clients are genuinely surprised by the difference between what their bank offered and what I found them.
What to do instead: Talk to a broker before you talk to your bank. At worst, the broker confirms your bank has a competitive product. At best, you save thousands over the life of your mortgage.
Mistake #5: Skipping the Home Inspection to Win a Bidding War
I understand the pressure. In a competitive market, buyers are sometimes tempted to waive the home inspection to make their offer more attractive to sellers.
In 20+ years, this is the advice I give most firmly: do not skip the home inspection.
A home inspection typically costs $400–$600 and takes two to three hours. What it can reveal — structural issues, outdated electrical, plumbing problems, hidden water damage — can represent tens or hundreds of thousands of dollars in repairs. No offer advantage is worth that risk.
If the market is truly competitive and you feel pressure to waive conditions, talk to your realtor and your broker about alternative strategies. There are ways to make a strong offer without eliminating your most important protection.
The Bottom Line
First-time buying is exciting, fast-moving, and high-stakes all at once. The best thing you can do is surround yourself with the right people — a realtor who knows your market, a lawyer who specialises in real estate, and a mortgage broker who takes the time to explain every option and every risk before you sign anything.
That’s exactly what I’m here for.
If you’re thinking about buying your first home in Ontario and want to talk through your options — no pressure, no obligation — I’d love to hear from you.
