3 mistakes to avoid when buying a home in Ontario

✨ Thinking of buying a home in Ontario? Here are 3 big mistakes to avoid (and how to do it right):

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1️⃣ Not Getting Pre-Approved Early

📌 Know your budget → Pre-approval tells you how much a lender is willing to give you based on your income, debts, and credit. Once you know that number, you can match it to property prices and calculate how much you’ll need for the down payment.

💡 In Ontario, the minimum down payment is:

• 5% on the first $500,000

• 10% on the portion between $500,000 – $999,999

• 20% if the home is $1M or more

✨ Example:

• 🏡 $1,000,000 property → $200,000 (20%)

• 🏡 $500,000 property → minimum $25,000 (5%), but many aim for $100,000 (20%)to avoid CMHC insurance.

📌 Stronger negotiations → Sellers prefer pre-approved buyers because they’re seen as less risky. If two offers come in and yours is pre-approved ✅, you’ll have the edge.

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2️⃣ Ignoring Your Credit Report

Your credit score impacts both if you get approved and the mortgage rate you’ll pay. Even a small error on your report could cost you thousands in extra interest over the years.

✨ Tips to improve & protect your score:

• ✅ Pay bills on time

• ✅ Keep credit card balances under 30% of your limit

• ✅ Avoid applying for too much new credit at once

• ✅ Check your report yearly and fix errors quickly

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3️⃣ Not Calculating All Costs

The purchase price isn’t the whole story. Be ready for:

💰 Land Transfer Tax (especially high in Toronto)

💰 Lawyer fees

💰 Home inspection & appraisal

💰 Title insurance

💰 Moving costs

💰 Ongoing expenses (property taxes, utilities, maintenance, condo fees if applicable)

These extra costs can add up to tens of thousands of dollars—and surprise buyers who don’t plan ahead.

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⚡ Bottom Line: Buying a home is exciting, but it’s also one of the biggest financial decisions you’ll make. Being prepared—and having a professional to guide you—helps you avoid costly mistakes and move forward with confidence.