Top 5 Mortgage Mistakes to Avoid When Buying a Home in Montreal
Top 5 Mortgage Mistakes to Avoid When Buying a Home in Montreal
Steer clear of these common pitfalls and buy your dream home with confidence.
Buying a home in Montreal is exciting — but it’s easy to make costly mistakes during the mortgage process. Whether you’re a first-time buyer or moving up, here are the top five mortgage missteps to avoid so you can save money, reduce stress, and close with confidence.
Not Getting Pre-Approved Before Shopping
One of the biggest mistakes buyers make is looking at homes before knowing what they can afford. A mortgage pre-approval not only shows sellers you're serious, but it also locks in your rate and helps you stick to your budget.
Montreal tip: In competitive neighbourhoods like Plateau or NDG, a pre-approval can make or break your offer.
Underestimating Total Costs
Your mortgage isn’t the only expense. Many buyers overlook closing costs (like notary fees, property taxes, welcome tax, and home inspection fees), which can add up to 2–4% of the purchase price.
Pro tip: Budget for moving costs, immediate repairs, and furniture so you're not financially stretched after move-in.
Choosing the Wrong Mortgage Product
Fixed or variable? Open or closed? Picking the wrong mortgage can cost you thousands over the years. Every situation is different — the lowest rate isn’t always the best deal if it lacks flexibility or has big penalties for early repayment.
Solution: Work with a mortgage broker who’ll help you compare options and align your choice with your lifestyle.
Making Major Financial Changes Before Closing
Big mistake: getting pre-approved and then financing a car, switching jobs, or opening new credit cards before closing. These actions can jeopardize your mortgage approval, even if you've already signed the offer.
Advice: Wait until after your mortgage funds to make big financial moves.
Not Working with a Local Mortgage Expert
Montreal’s real estate and financing laws are unique — including French-language documentation, Quebec-specific taxes, and local lender preferences. Working with a local mortgage broker means you’ll have someone who understands the landscape and advocates for your best deal.
Bonus: Brokers have access to multiple lenders, including exclusive rates and solutions for tricky files like self-employed or new-to-Canada clients.
Final Thoughts
Avoiding these common mistakes will save you time, money, and frustration. The Montreal housing market moves fast — but with the right guidance, you’ll make confident, informed choices from offer to closing.
Ready to talk mortgages? Contact me today and get expert advice tailored to your needs and goals, wherever you are in your homebuying journey.