Before you buy a home, lenders expect stability. Any major financial changes can disrupt your approval, increase your debt ratios, or lower your credit score. Here are the most important things to avoid before applying for a mortgage in Ontario.

1️⃣ Don’t apply for new credit

New credit inquiries lower your score and create uncertainty for lenders.

✔️ hard checks reduce points

✔️ new credit increases risk

✔️ lenders fear future spending

Hold off on new credit until after your mortgage closes.

2️⃣ Don’t close old credit accounts

Closing accounts reduces available credit and increases utilization.

✔️ lowers score

✔️ affects ratios

✔️ disrupts history

Keep all accounts open until your mortgage has funded.

3️⃣ Don’t move money without documentation

Large or unusual deposits must be explained with proof.

✔️ bank statements reviewed

✔️ sourcing required

✔️ paper trail mandatory

Move funds early and keep detailed records.

4️⃣ Don’t increase your debts

Higher balances affect debt-to-income ratios immediately.

✔️ increases monthly obligations

✔️ reduces borrowing power

✔️ risks approval

Avoid new payments until the mortgage closes.

5️⃣ Don’t miss or delay payments

Even one late payment can derail your approval.

✔️ payment history is critical

✔️ credit score drops fast

✔️ lenders see risk

Stay organized and keep bills current during the process.

6️⃣ Don’t buy a car

Car loans drastically reduce borrowing power and savings.

✔️ increases monthly debt

✔️ lowers approval amount

✔️ drains cash reserves

Buy the car *after* closing — not before.

7️⃣ Don’t change jobs if you can avoid it

Lenders must verify stable income.

✔️ employment confirmation required

✔️ paystubs needed

✔️ delays closings

If possible, wait until after closing to switch jobs.

8️⃣ Don’t spend your savings

You need cash for closing and lenders may re-verify funds.

✔️ down payment

✔️ closing costs

✔️ reserve requirements

Keep all savings untouched until the mortgage is complete.

💬 Final Thought

Buying a home requires stability — not changes. Keeping your finances steady protects your approval and ensures the process runs smoothly.

If you want a checklist tailored to your situation, The Frontline Mortgage Group help you avoid costly mistakes and stay mortgage-ready.