Buying your first home is a huge milestone, and a massive financial decision. In today’s market, where affordability is tight and rules are shifting, it’s more important than ever to understand the mortgage process clearly. Many first-time buyers unknowingly fall into avoidable traps that cost them time, money and peace of mind.

Here are five of the most common mortgage pitfalls, and how to avoid them.

1. Shopping without a mortgage pre-approval

It’s tempting to start house-hunting right away. But without a pre-approval, you’re guessing at your budget. That can lead to heartbreak if you fall in love with a home you can’t afford, or lose a bid because you weren’t ready.

What to do:

Get pre-approved before you start looking. It shows sellers you’re serious and gives you a clear idea of what you can borrow. And if you’re using an online platform such as Homewise, the whole process takes just minutes.

2. Comparing rates from only one lender

Your bank may offer you a mortgage, but that doesn’t mean it’s your best option. Every lender has different rates, products and approval standards. Relying on a single offer can mean overpaying, often by thousands over the life of your loan.

What to do:

Work with a mortgage broker or platform that compares multiple lenders for you. Even a slightly better rate or more flexible terms can make a big difference.

3. Underestimating total monthly costs

First-time buyers often focus solely on the mortgage payment. But your monthly costs will also include property taxes, utilities, insurance, maintenance and possibly condo fees.

What to do:

Budget for the full picture. Use a mortgage affordability calculator that includes these expenses. That way, you won’t stretch yourself too thin.

4. Ignoring mortgage flexibility

That “super low” rate may come with strings, such as high penalties for breaking the mortgage early, or limited prepayment options. These details can cost you if your situation changes (which it often does).

What to do:

Look beyond the rate. Ask about:

• Penalties for breaking early
• Prepayment privileges
• Portability if you move
• How the lender handles renewals

5. Forgetting about closing costs

You’ve saved up for the down payment, great. But closing costs (legal fees, land transfer tax, inspections, title insurance) often catch first-time buyers off guard. These can add up to 1.5 to four per cent of the home’s price.

What to do:

Talk to your mortgage advisor about expected closing costs in your province. Plan for them early so they don’t derail your purchase.

Final word

Buying your first home should be exciting, not overwhelming. Avoiding these common mortgage mistakes will help you stay informed, in control and financially ready for what’s ahead.

At Homewise, we help first-time buyers navigate the entire mortgage process, online, for free and compare top lenders to find the right fit. Because when it comes to your mortgage, knowledge truly is power.