A home is a large commitment, and a few avoidable missteps during the process can cost money or put a purchase at risk. Knowing them in advance makes them easy to sidestep. If you would like guidance through your own purchase, it is worth a conversation.
Stretching the Budget Too Far
Being approved for a maximum amount does not mean you should spend it all. Leaving room for property taxes, upkeep, and the unexpected keeps your finances comfortable and protects you if rates rise at renewal. Borrowing a little under your limit is often the wiser choice.
Changing Jobs Before Closing
Lenders look for stable income, so switching jobs or moving to self-employment right before closing can raise questions and even jeopardize an approval. Where possible, keep your employment steady until the mortgage has funded and the keys are in hand.
Taking On New Credit
Financing a car or opening new credit while your mortgage is in process can shift your debt ratios and affect your approval. It is best to hold off on large purchases and new credit until the sale has closed.
Focusing Only on the Rate
The lowest rate can come with restrictive terms, high penalties, or no portability. If life later requires breaking the mortgage, those terms can cost far more than the rate saved. Review the fine print alongside the rate before you commit.
Skipping a Real Pre-Approval
Shopping without a verified pre-approval risks wasted time or a deal falling through. A proper pre-approval confirms what you can borrow and holds a rate while you look, so your offers are realistic and credible.
Forgetting Closing Costs
Land transfer tax, legal fees, and related costs commonly add a few percent to a purchase and must be paid in cash at closing. Setting that money aside early prevents a scramble at the finish line.
A Little Care Goes a Long Way
Most of these are simple to avoid with a bit of planning. I am licensed in British Columbia, Alberta, and Ontario, and I am happy to help you steer clear of them.