Not knowing how much you can afford before making an offer.
The easiest way to avoid this mistake is to get a full mortgage pre-approval by a lender so you know in advance exactly how much you can afford. Pre-approvals are free and it will give you a basis to make a more informed purchasing decision when you find the house you like.
Not realizing that the wrong mortgage can cost thousands of dollars in needless interest and taxes.
Check with your accountant before you make your final decision on which mortgage you are going to choose. Your CA will be able to tell you what the long-term effects will be on your income, your taxes and the equity you build in your home during the years. Most people aren't aware that with a standard 25-year amortization, they will be paying 2.2 times the amount of the mortgage in payments over the lifetime of the mortgage.
With some advance planning and by talking to your buyer specialist about our Mortgage Terminator Program, buyers can learn how to cut the amount of interest they pay dramatically and own their homes free and clear sooner.
Not realizing in advance who the real estate salesperson represents.
Most people think that the agent who is showing them homes is working for them. But unless you've signed a contract authorizing that agent to work as your Buyer Agent, they automatically represent the seller. There are different types of agency relationships you can have with a Realtor. Make sure that you are clear about your options.
Not discovering hidden defects before you buy a home.
One of the most expensive mistakes is also one of the easiest to avoid by having a professional home inspection done! Don't get stuck with a money pit. The cost of a professional home inspection in Toronto is usually about $400 to $500, but the peace of mind it can give you and the expense you can avoid needlessly is in the thousands of dollars.
Not knowing how much bad credit can affect your ability to buy or refinance a home.
Before you buy a home, many of the clouds on your credit history can be cleared up or even eliminated. Your professional mortgage consultant can help you review and prepare your credit file in advance.