Avoid These 10 First-Time Homebuyer Mistakes in 2025 (and Save Thousands)
Avoid These 10 First-Time Homebuyer Mistakes in 2025 (and Save Thousands)
Hamed Rahimi
Buying your first home is exciting — but it’s also a process filled with potential pitfalls.
The wrong move at the wrong time can cost you thousands in extra interest, fees, or lost opportunities.
Here are the 10 most common mistakes first-time buyers make in 2025 — and exactly how to avoid them.
Mistake 1: Skipping Mortgage Pre-Approval
Why it’s a problem: Without pre-approval, you don’t know your true budget — and sellers won’t take your offer seriously.
Fix: Get pre-approved before you start house hunting. Lock in your rate for 90–120 days to protect yourself from increases.
Mistake 2: Not Using First-Time Buyer Programs
Why it’s a problem: You leave free money and tax perks on the table.
Fix: Use all three:
FHSA — $40K lifetime tax-free
HBP — $60K from RRSP tax-free (if repaid)
Land Transfer Tax Rebates — provincial & municipal savings
Mistake 3: Underestimating Closing Costs
Why it’s a problem: Surprise expenses (1.5%–4% of purchase price) can derail your budget.
Fix: Budget for:
Land transfer tax
Legal fees
Home inspection
Title insurance
Mistake 4: Changing Jobs Before Closing
Why it’s a problem: Lenders want employment stability. A job change can delay or even cancel your approval.
Fix: If possible, wait until after closing to make major career moves.
Mistake 5: Taking on New Debt During the Process
Why it’s a problem: That new car loan or credit card can push your debt ratios over the limit.
Fix: Avoid major purchases and new credit applications until after you move in.
Mistake 6: Ignoring the True Cost of Ownership
Why it’s a problem: Your mortgage payment is just part of the cost — property taxes, insurance, utilities, and maintenance add up.
Fix: Use a total cost of ownership budget before making offers.
Mistake 7: Going with the First Mortgage Offer
Why it’s a problem: You may end up with a higher rate or worse terms than necessary.
Fix: Use a mortgage broker to compare multiple lenders and negotiate on your behalf.
Mistake 8: Forgetting to Lock In a Rate
Why it’s a problem: Rates can rise between your offer and closing.
Fix: If you like the rate you’re offered, lock it in — especially in volatile markets.
Mistake 9: Not Reading the Fine Print
Why it’s a problem: Prepayment penalties, portability rules, and other terms can cost you later.
Fix: Have your mortgage broker review all terms with you in plain language.
Mistake 10: Falling for “House Fever”
Why it’s a problem: Emotional decisions can lead to overpaying or buying the wrong property.
Fix: Stick to your budget and must-have list, no matter how perfect a place seems.
Quick Recap: How to Avoid These Mistakes
Get pre-approved early.
Maximize first-time buyer programs.
Budget for closing costs.
Keep job and income stable.
Avoid new debt.
Calculate total ownership costs.
Compare multiple mortgage offers.
Lock in rates strategically.
Read all terms carefully.
Keep emotions in check.
Want to avoid all 10 mistakes before they happen?
I work with first-time buyers every day to create smooth, stress-free mortgage plans — so you can focus on finding the right home, not worrying about what could go wrong.
Buying your first home is exciting — but it’s also a process filled with potential pitfalls.
The wrong move at the wrong time can cost you thousands in extra interest, fees, or lost opportunities.
Here are the 10 most common mistakes first-time buyers make in 2025 — and exactly how to avoid them.
Mistake 1: Skipping Mortgage Pre-Approval
Why it’s a problem: Without pre-approval, you don’t know your true budget — and sellers won’t take your offer seriously.
Fix: Get pre-approved before you start house hunting. Lock in your rate for 90–120 days to protect yourself from increases.
Mistake 2: Not Using First-Time Buyer Programs
Why it’s a problem: You leave free money and tax perks on the table.
Fix: Use all three:
FHSA — $40K lifetime tax-free
HBP — $60K from RRSP tax-free (if repaid)
Land Transfer Tax Rebates — provincial & municipal savings
Mistake 3: Underestimating Closing Costs
Why it’s a problem: Surprise expenses (1.5%–4% of purchase price) can derail your budget.
Fix: Budget for:
Land transfer tax
Legal fees
Home inspection
Title insurance
Mistake 4: Changing Jobs Before Closing
Why it’s a problem: Lenders want employment stability. A job change can delay or even cancel your approval.
Fix: If possible, wait until after closing to make major career moves.
Mistake 5: Taking on New Debt During the Process
Why it’s a problem: That new car loan or credit card can push your debt ratios over the limit.
Fix: Avoid major purchases and new credit applications until after you move in.
Mistake 6: Ignoring the True Cost of Ownership
Why it’s a problem: Your mortgage payment is just part of the cost — property taxes, insurance, utilities, and maintenance add up.
Fix: Use a total cost of ownership budget before making offers.
Mistake 7: Going with the First Mortgage Offer
Why it’s a problem: You may end up with a higher rate or worse terms than necessary.
Fix: Use a mortgage broker to compare multiple lenders and negotiate on your behalf.
Mistake 8: Forgetting to Lock In a Rate
Why it’s a problem: Rates can rise between your offer and closing.
Fix: If you like the rate you’re offered, lock it in — especially in volatile markets.
Mistake 9: Not Reading the Fine Print
Why it’s a problem: Prepayment penalties, portability rules, and other terms can cost you later.
Fix: Have your mortgage broker review all terms with you in plain language.
Mistake 10: Falling for “House Fever”
Why it’s a problem: Emotional decisions can lead to overpaying or buying the wrong property.
Fix: Stick to your budget and must-have list, no matter how perfect a place seems.
Quick Recap: How to Avoid These Mistakes
Get pre-approved early.
Maximize first-time buyer programs.
Budget for closing costs.
Keep job and income stable.
Avoid new debt.
Calculate total ownership costs.
Compare multiple mortgage offers.
Lock in rates strategically.
Read all terms carefully.
Keep emotions in check.
Want to avoid all 10 mistakes before they happen?
I work with first-time buyers every day to create smooth, stress-free mortgage plans — so you can focus on finding the right home, not worrying about what could go wrong.
Buying your first home is exciting — but it’s also a process filled with potential pitfalls.
The wrong move at the wrong time can cost you thousands in extra interest, fees, or lost opportunities.
Here are the 10 most common mistakes first-time buyers make in 2025 — and exactly how to avoid them.
Mistake 1: Skipping Mortgage Pre-Approval
Why it’s a problem: Without pre-approval, you don’t know your true budget — and sellers won’t take your offer seriously.
Fix: Get pre-approved before you start house hunting. Lock in your rate for 90–120 days to protect yourself from increases.
Mistake 2: Not Using First-Time Buyer Programs
Why it’s a problem: You leave free money and tax perks on the table.
Fix: Use all three:
FHSA — $40K lifetime tax-free
HBP — $60K from RRSP tax-free (if repaid)
Land Transfer Tax Rebates — provincial & municipal savings
Mistake 3: Underestimating Closing Costs
Why it’s a problem: Surprise expenses (1.5%–4% of purchase price) can derail your budget.
Fix: Budget for:
Land transfer tax
Legal fees
Home inspection
Title insurance
Mistake 4: Changing Jobs Before Closing
Why it’s a problem: Lenders want employment stability. A job change can delay or even cancel your approval.
Fix: If possible, wait until after closing to make major career moves.
Mistake 5: Taking on New Debt During the Process
Why it’s a problem: That new car loan or credit card can push your debt ratios over the limit.
Fix: Avoid major purchases and new credit applications until after you move in.
Mistake 6: Ignoring the True Cost of Ownership
Why it’s a problem: Your mortgage payment is just part of the cost — property taxes, insurance, utilities, and maintenance add up.
Fix: Use a total cost of ownership budget before making offers.
Mistake 7: Going with the First Mortgage Offer
Why it’s a problem: You may end up with a higher rate or worse terms than necessary.
Fix: Use a mortgage broker to compare multiple lenders and negotiate on your behalf.
Mistake 8: Forgetting to Lock In a Rate
Why it’s a problem: Rates can rise between your offer and closing.
Fix: If you like the rate you’re offered, lock it in — especially in volatile markets.
Mistake 9: Not Reading the Fine Print
Why it’s a problem: Prepayment penalties, portability rules, and other terms can cost you later.
Fix: Have your mortgage broker review all terms with you in plain language.
Mistake 10: Falling for “House Fever”
Why it’s a problem: Emotional decisions can lead to overpaying or buying the wrong property.
Fix: Stick to your budget and must-have list, no matter how perfect a place seems.
Quick Recap: How to Avoid These Mistakes
Get pre-approved early.
Maximize first-time buyer programs.
Budget for closing costs.
Keep job and income stable.
Avoid new debt.
Calculate total ownership costs.
Compare multiple mortgage offers.
Lock in rates strategically.
Read all terms carefully.
Keep emotions in check.
Want to avoid all 10 mistakes before they happen?
I work with first-time buyers every day to create smooth, stress-free mortgage plans — so you can focus on finding the right home, not worrying about what could go wrong.
Get my latest mortgage tips, tools, and guides — delivered right to you.
No spam, unsubscribe anytime.