Getting a mortgage is one of the biggest financial decisions you’ll make — and one of the most complex.
Even small mistakes can cost you thousands over the life of your loan.

After funding over $150M in mortgages, I’ve seen the same errors happen again and again — and I’ve helped clients avoid them.

Here are 7 common mortgage mistakes Canadians make, plus strategies to make sure you don’t fall into the same traps.

Mistake #1: Not Shopping Around for the Best Rate and Terms

Why it’s a problem:
Many borrowers simply accept the first offer from their bank. This can mean paying a higher interest rate or missing out on features that could save you money.

How to avoid it:

• Compare at least 3–5 lenders (banks, credit unions, mortgage brokers, and monoline lenders)

• Look beyond the rate — check prepayment privileges, portability, and penalties

Example:
On a $500,000 mortgage, a rate difference of just 0.25% could save you ~$3,000 over a 5-year term.

Mistake #2: Focusing Only on the Interest Rate

Why it’s a problem:
A low rate is great, but a mortgage with restrictive terms could cost you more if you need to break it early.

How to avoid it:

• Consider prepayment flexibility (can you make lump-sum payments?)

• Understand the penalty calculation method (IRD vs. 3 months’ interest)

• Choose features that match your lifestyle and plans

Mistake #3: Overstretching Your Budget

Why it’s a problem:
Buying at the top of your budget leaves no room for unexpected expenses, interest rate hikes, or life changes.

How to avoid it:

• Get pre-approved and stick to a budget that’s comfortable — not just what you qualify for

• Keep your total housing costs (mortgage, taxes, heat) under 35% of your gross income

Mistake #4: Not Considering the Total Cost of Homeownership

Why it’s a problem:
Your mortgage payment is only part of the picture — property taxes, insurance, utilities, and maintenance all add up.

How to avoid it:

• Budget an extra 1–3% of your home’s value annually for maintenance

• Factor in utilities, condo fees, and seasonal costs before finalizing your purchase

Mistake #5: Ignoring Your Credit Score Before Applying

Why it’s a problem:
Your credit score impacts not just your mortgage approval, but also the rate you get.

How to avoid it:

• Check your credit score 6–12 months before applying

• Pay down revolving debt and avoid new credit applications

• Dispute any errors on your credit report

Mistake #6: Choosing the Wrong Mortgage Type

Why it’s a problem:
Fixed vs. variable, open vs. closed — the wrong choice can cost you flexibility or money.

How to avoid it:

• Fixed rate: Stability and predictable payments

• Variable rate: Potentially lower cost if rates fall, but more risk

• Open: Can be paid off anytime without penalty

• Closed: Lower rates, but penalties if paid early

Mistake #7: Not Getting Professional Advice

Why it’s a problem:
Mortgages are complex — relying solely on your bank means you may only see their products.

How to avoid it:

• Work with a mortgage broker who has access to multiple lenders

• Ask questions about every detail of your mortgage agreement

• Get written comparisons before deciding

Bonus Tip: Plan for Renewal and Refinancing Early

Don’t wait until your term ends to think about your next step. Starting 4–6 months early gives you more options and negotiating power.

Final Word: Avoid the Pitfalls, Maximize the Savings

The right mortgage can save you thousands, give you financial flexibility, and support your long-term goals. The wrong one can hold you back for years.

Need expert guidance?
I’ll shop the market for you, explain your options in plain language, and help you choose the mortgage that’s right for you — not just the lender.

📞 Book a Call