Buying your first home is a huge milestone. It’s exciting, but the process can also be overwhelming, with many details to consider.
As experienced mortgage brokers at Mortgage Achievers, we’ve seen first-time buyers make common mistakes—mistakes that could have been avoided with the right guidance. Here are some of the biggest regrets we've observed from new buyers and, more importantly, how you can avoid them:
1. Not Shopping Around
Settling for the first mortgage offer can cost you big time. Different lenders offer varying rates and terms, so taking the time to compare options can save thousands of dollars. A mortgage broker can guide you through this process, ensuring you get the best deal.
2. Not Knowing Your Must-Haves
Before you start house hunting, it’s essential to be clear about your “must-haves” vs. “nice-to-haves.” Skipping this step can lead to disappointment if your new home doesn’t meet your key requirements. Think about the number of bedrooms, outdoor space, and proximity to work or schools.
3. Not Saving Enough
Many buyers underestimate the full costs of buying a home. In addition to the down payment, there are closing costs, taxes, and moving expenses to consider. Aim for at least a 20% down payment to avoid lenders mortgage insurance (LMI) and ensure you have funds set aside for hidden costs. Reach your savings goals with our calculator guide.
4. Not Having an Emergency Fund
Unexpected expenses—like a leaking roof or broken appliance—can quickly become financial headaches. It’s a good idea to have an emergency fund with 3-6 months of living expenses to cover any unforeseen repairs or changes in your financial situation.
5. Buying at the Wrong Time
Timing matters. Some buyers regret purchasing when interest rates were high, or the market was at its peak. Consult a mortgage broker to help you navigate market conditions and determine the best time to buy.
6. Not Researching the Area
Your dream home won’t feel like a dream if it’s in the wrong neighbourhood. Take time to research crime rates, schools, and nearby amenities. Spend time in the area and talk to the locals to get a sense of the community before you commit.
7. Not Understanding Living Expenses
It’s easy to focus on the purchase price and forget about the ongoing costs of homeownership, like utilities, maintenance, and repairs. Be sure to budget for these expenses to avoid unpleasant surprises.
8. Not Getting Pre-Approved
Starting your house hunt without a mortgage pre-approval can lead to disappointment if you fall in love with a home only to find out you don’t qualify for the necessary loan. A pre-approval lets you know how much you can borrow and gives you an advantage in negotiations. Calculate your borrowing power here.
9. Relying on Property Appreciation
It’s risky to assume your home will always increase in value. Property markets can fluctuate, so it’s important to ensure you can afford your home based on your current financial situation, not just future expectations.
10. Not Doing Enough Research
Buying a home is a big investment, so don’t rush through the research phase. Understand the property’s history, any renovations it may need, and what the neighbourhood offers. Doing your due diligence upfront can save you from costly surprises later.
11. Not Sticking to the Budget
First-time buyers often stretch their budgets to buy their dream home, only to find themselves struggling with monthly mortgage payments. Set a budget and stick to it, even if it means compromising on some features. Check out our budget calculator here.
12. Not Shopping Around for Contractors
If your new home needs renovations or repairs, don’t go with the first contractor you find. Take the time to get multiple quotes and read reviews to ensure you’re getting quality work at a fair price.
13. Not Checking Fire Alarms
Safety should always come first. Make sure the fire alarms in your new home are functional and up to code.
14. Ignoring Future Developments
Future developments in the area can impact everything from traffic to property values. Research any planned projects in the neighbourhood to make sure they align with your lifestyle and investment goals.
15. Overlooking Old Paint
Older homes may contain lead paint, which can pose health risks. Be sure to have the home inspected for lead, especially if you have children or plan to start a family.
16. Overlooking Leaks
Leaks can lead to major damage over time. Ensure your home inspection covers potential leaks in the roof, plumbing, and foundation, and address any issues immediately.
17. Not Checking the Wiring
Electrical problems can be both dangerous and expensive. Before purchasing, make sure the home’s wiring is up to date and have it inspected by a professional.
18. Buying a Home That’s Too Small
Your first home should fit not only your current needs but your future plans. Consider whether you’ll need more space down the road, especially if you plan to start a family.
19. Waiting for the Perfect Home
Perfection is rare. Don’t wait for the perfect home—you might miss out on great opportunities. Be flexible and willing to compromise on less critical features.
20. Not Considering the Commute
Your daily commute can have a big impact on your lifestyle. Consider the time and cost of commuting to work when choosing a location, as this is often overlooked by first-time buyers.
21. Forgetting to Change the Locks
Security should be a priority when moving into a new home. Change the locks right away to ensure you’re the only one with access to your new property.
22. Not Considering Resale Value
Even if this is your “forever home,” it’s important to think about future resale value. Factors like location, school districts, and the number of bedrooms can all impact how easy it will be to sell the home down the road.
23. Not Keeping Paperwork
Keep all your paperwork—mortgage documents, inspection reports, and receipts for renovations. You’ll need them if you ever sell, refinance, or file taxes.
At Mortgage Achievers, we’re here to guide you through the home-buying process and help you avoid these common pitfalls.
Check out our dedicated page for more information First Home Buyers
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