Applying for a mortgage isn’t as simple as just picking the lowest rate. Here are the top mistakes Canadian homebuyers make — and how to avoid them.

1️⃣ Ignoring Your Credit Score
Lenders look at your credit score first. Scores above 680 generally secure better rates. Check your score before applying and correct any inaccuracies.

2️⃣ Making Big Purchases Pre-Approval
Bought a car right before applying? That new debt can negatively impact your mortgage approval. Wait until after closing for major purchases.

3️⃣ Not Comparing Lenders
Your primary bank may not offer the best rate. Mortgage brokers can access deals from multiple lenders, sometimes saving you 0.2%–0.5%.

4️⃣ Overlooking Additional Fees
Beyond the mortgage, consider legal fees, appraisals, and insurance costs. Failing to budget for these can create last-minute surprises.

5️⃣ Choosing the Wrong Term
The most popular mortgage in Canada is the 5-year fixed, but it’s not right for everyone. Shorter terms or variable rates could offer better flexibility depending on market conditions.

Expert Insight:
“Even experienced buyers sometimes overlook the fine print in mortgage contracts. Always ask about prepayment penalties and rate adjustment clauses,” warns Benjamin Tal, Deputy Chief Economist at CIBC.