Common First Time Home Buyer Mistakes
March 6, 2026 | Posted by: Sherry Corbitt
As a first-time buyer, planning ahead is vital to ensure that your first purchase runs smoothly. These are some of the most common mistakes made:
Not Saving A Large Enough Down Payment
The minimum required downpayment in Ontario is 5% of the purhase price. With less than a 20% downpayment you will require default insurance, however this is a great option to get into your first home.
Looking at Houses Too Early
Getting inspired by looking early is not a bad thing per-se. However, this may lead to get attached to a property you dont qualify for. With heightened expectations this will be a let down when finding another property. I highly recommend to start looking once you have a mortgage pre-approval and have established your downpayment.
Not Calculating the Cost
This should be one of the most critical priorities, yet is often overlooked. Closing costs are one of the main costs involved in a mortgage being roughly 1.5% of the purchase price. Make sure you have an estimation of these costs beforehand as this is not included in the downpayment.
Going Directly To a Bank
Getting a mortgage through a bank will likely cost you more due to inflexibility of fees and interest rate offers. Instead, use a mortgage broker when applying for a mortgage. They have connections with numerous banks and can get you the best rate.
If you are a first-time homebuyer, learn from these mistakes and do your best to avoid making the same ones in your purchasing process. Please reach out to me if you have any questions, I am always here to help with your mortgage needs!
Sources
Lewis, Holden (2019). 12 First-Time Home Buyer Mistakes and How to Avoid Them. Nerd Wallet. Retreived from https://www.nerdwallet.com/article/mortgages/first-time-home-buyer-mistakes-that-are-easy-to-avoid
