Buying your first home in the Greater Toronto Area is exciting, but it’s also one of the largest financial decisions you’ll ever make. Unfortunately, many first-time buyers make costly mistakes that could have been easily avoided with proper guidance.
As real estate lawyers serving Toronto and Durham Region, we’ve seen these errors repeatedly. Here are the five most common mistakes first-time homebuyers make—and how to avoid them.
Getting Professional Help Early
1. Skipping the Home Inspection
The Mistake: Many buyers waive the home inspection to make their offer more competitive in Toronto’s hot real estate market.
Why It’s Costly: Hidden issues like electrical problems, plumbing issues, or structural damage can cost tens of thousands to repair after closing.
How to Avoid It: Always include a home inspection condition in your offer. A qualified inspector can identify problems that could derail your purchase or give you negotiating power to reduce the price.
2. Not Understanding Closing Costs
The Mistake: First-time buyers often budget only for the down payment and forget about closing costs.
The Reality: Closing costs in Ontario typically range from 1.5% to 4% of the purchase price. For a $800,000 home in the GTA, that’s $12,000 to $32,000 in additional expenses.
What’s Included:
- Land transfer tax (municipal and provincial)
- Legal fees
- Title insurance
- Home inspection
- Property tax adjustments
- Moving costs
How to Avoid It: Budget for closing costs early in your home-buying process. Your real estate lawyer can provide an estimate based on your specific purchase.
3. Making Offers Without Legal Review
The Mistake: Submitting offers without having a lawyer review the terms and conditions.
Why It’s Risky: Standard real estate forms may not protect your interests. Special clauses, chattels and fixtures, and closing dates all have legal implications.
How to Avoid It: Have your real estate lawyer review your offer before submission. We can explain complex terms and suggest protective clauses that safeguard your interests.
4. Misunderstanding Mortgage Pre-Approval
The Mistake: Assuming pre-approval guarantees your mortgage will be funded at closing.
The Problem: Pre-approval is not a guarantee. Your financial situation, credit score, or the property itself could affect final approval.
How to Avoid It:
- Get pre-approval from multiple lenders
- Avoid major purchases or credit changes during the buying process
- Include a financing condition in your offer
- Work with a mortgage broker who understands Ontario’s lending landscape
5. Choosing the Wrong Legal Representation
The Mistake: Selecting a lawyer based solely on price or using your real estate agent’s recommendation without research.
Why It Matters: Real estate transactions involve complex legal documents, title searches, and regulatory compliance. An inexperienced lawyer could miss critical issues.
How to Choose Wisely:
- Select a lawyer who specializes in real estate law
- Ensure they’re familiar with your local market (GTA, Durham Region)
- Ask about their experience with first-time buyers
- Understand their fee structure upfront
Protecting Your Investment
Buying your first home doesn’t have to be overwhelming. With proper legal guidance, you can avoid these common pitfalls and proceed with confidence.
At Doss Law, we specialize in real estate transactions throughout the Greater Toronto Area and Durham Region. We help first-time buyers navigate the complex legal aspects of property purchase, ensuring your interests are protected every step of the way.
Ready to buy your first home? Contact Doss Law at 416-502-2060 to discuss how we can help protect your investment and ensure a smooth closing process
