Buying your first home is a huge milestone — and for many, it’s the biggest financial decision they’ll ever make. But between the excitement of open houses and the anxiety of paperwork, it’s easy to make costly mistakes that could delay your dream or drain your wallet.

As someone who’s helped dozens of clients navigate the first-time home buying journey across Ontario — from the cityscape of Toronto to the charm of Guelph and Fergus — I’ve seen what works, what doesn’t, and what people often overlook.

In this post, I’m breaking down the top 5 mistakes first-time buyers make (and exactly how you can avoid them). If you're planning to buy soon — or even just thinking about it — this is a must-read.

Let’s dive in.

Mistake #1: Focusing Only on the Purchase Price

It’s easy to get tunnel vision when you're scrolling listings or chatting with your mortgage broker. You see a house listed at $550,000 and think: “Okay, I can swing that.”

But the purchase price is just one piece of the puzzle. What about land transfer taxes? Closing costs? Home inspection fees? Legal fees? These "hidden" costs can add up to thousands — and they often catch first-time buyers off guard.

Here's a breakdown of what you might need to budget for:

• Land Transfer Tax: In Ontario, first-time buyers can get a rebate of up to $4,000, but anything beyond that comes out of your pocket. Check if you qualify here: Ontario Land Transfer Tax Refund for First-Time Buyers

• Legal Fees: Typically $1,500–$2,000

• Home Inspection: Around $400–$600 (and worth every penny)

• Title Insurance: ~$300

• Moving Costs: Depending on your distance and amount of stuff

How to avoid it:

Before falling in love with a home, work with your agent or mortgage broker to estimate total upfront costs. Need help? You can always contact me or use my free home evaluation tool to see where your budget really stands.

Mistake #2: Skipping Mortgage Pre-Approval

Imagine this: You find your dream home in Guelph, put in an offer... and then realize your financing won’t come through in time — or worse, you don’t qualify for the amount you expected.

Getting pre-approved isn’t just a “nice to have.” It’s a critical step in your home buying journey.

Why mortgage pre-approval matters:

● It gives you a realistic budget to work with

● Sellers take your offer more seriously (especially in competitive markets)

● You lock in an interest rate (some lenders hold it for 90–120 days)

● It helps you shop smarter and faster

How to avoid it:

Before you even start touring homes, meet with a lender or mortgage broker to get pre-approved. Gather your income docs, credit info, and down payment details. Not sure where to start? I walk my clients through the full process — reach out here.

Mistake #3: Not Exploring Government Programs

If you’re a first-time home buyer in Ontario and you’re not tapping into available programs… you could be leaving thousands of dollars on the table.

There are multiple incentives designed to help people just like you — you just have to know where to look.

Here are 3 big ones:

1. Land Transfer Tax Refund

   If you qualify, you can receive up to $4,000 back on your land transfer tax in Ontario. See full eligibility details here.

2. Home Buyers' Plan (HBP)

   This lets you borrow up to $35,000 from your RRSP (per person) to buy your first home — tax-free. That’s $70,000 if you’re buying with a partner! Learn more about HBP

3. First Home Savings Account (FHSA)

   Save up to $8,000 per year, tax-free, up to a $40,000 lifetime limit. It’s like a TFSA meets RRSP — tailor-made for homebuyers. Get the full scoop here

How to avoid it:

Spend time researching which federal and provincial grants apply to you. I keep an updated list on my site — visit our First-Time Home Buyer resource hub or shoot me a message here and I’ll walk you through it.

Mistake #4: Underestimating Location and Lifestyle

Let’s be real: you can renovate a kitchen, but you can’t move a house off a noisy street or turn a 2-hour commute into 30 minutes.

Too many first-time buyers focus so much on the house that they forget to consider the lifestyle around it.

Things you can’t overlook:

• Commute time (trust me, it adds up)

• School zones if you have kids (or plan to)

• Walkability and access to grocery stores, parks, and public transit

• Future development plans in the area

I always tell my clients to visit the neighborhood at different times — morning rush hour, weekend afternoons, and after dark. How does it feel? Can you see yourself living there?

How to avoid it:

Think long-term. A good deal isn’t just about the house — it’s about the life that comes with it. Browse listings in Fergus, Guelph, and beyond to get a feel for what different neighborhoods offer.

Mistake #5: Trying to Do Everything Alone

Buying your first home isn’t something you have to figure out alone — but some buyers try to wing it without a real estate agent, mortgage expert, or legal help.

This often leads to overpaying, missing deadlines, or even legal risks.

Working with professionals who’ve helped hundreds of buyers like you isn’t an extra cost — it’s an investment in peace of mind.

How to avoid it:

Build your dream team early:

• A real estate agent who knows the local market (Hi 👋 I’m Kaitlyn — here’s my Google profile)

• A trusted mortgage broker to get you the best rates

• A real estate lawyer to handle paperwork and protect your interests

When you’re ready, you can book a call with me here — no pressure, just straight-up advice.

Final Thoughts

Becoming a homeowner is exciting — but it’s also easy to get overwhelmed. By avoiding these 5 common mistakes, you’ll save money, reduce stress, and set yourself up for long-term success.

Let’s recap:

1. Don’t just budget for the purchase price — factor in all the extra costs

2. Get mortgage pre-approved before you fall in love with a home

3. Take advantage of every grant and program available

4. Choose your location with your lifestyle in mind

5. Build a strong team to guide you every step of the way

If you’re ready to explore your options or have questions about the next step — I’m here to help.

Check out KMGHomes.ca for listings, guides, and local expertise — or contact me directly for personalized support.