FIRST-TIME MORTGAGES: EXPECTATIONS VS REALITY
- johnathanmcquoid
- Jan 18
- 2 min read
First-time homebuyers are some of our favourite clients.
We love helping people understand the process, set realistic expectations, and finally cross "homeownership" off their bucket list.
But… many first-time buyers walk in with expectations that don’t quite match reality.
So let’s break down the 4 biggest ones 👇
1️⃣ Expectation: “We have enough saved for our down payment.”
Reality:
Many first-time buyers save for years but still come up short — not because they did anything wrong, but because housing prices have changed and stress-test rules impact qualification.
Minimum down payment rules:
✔️ 5% for homes up to $500,000
✔️ 10% on the portion between $500,000–$999,999
✔️ 20% down for $1M+ homes
And remember: less than 20% down = mortgage insurance, which affects affordability.
Many buyers also aim too high in price before understanding their true qualifying numbers.
2️⃣ Expectation: “Once we have the down payment, we’re all set!”
Reality:
There are MANY additional costs involved that most first-time buyers never consider, including:
• legal fees
• land transfer taxes (including double LTT in Ontario)
• moving costs
• appraisal fees
• title insurance
• adjustments at closing
These typically total 1.5%–2% of the purchase price — and must be paid in cash, not added to the mortgage.
3️⃣ Expectation: “Costs will stay the same when we go from renting to owning.”
Reality:
Owning a home comes with ongoing costs renters don’t deal with, such as:
✔️ property taxes
✔️ home insurance
✔️ utilities (which may be higher)
✔️ repairs and maintenance
✔️ appliance replacement
✔️ unexpected emergencies
This is why we encourage buyers to “test drive” their future budget for a few months.
If you’re comfortable with the increased expenses, you’ll feel more confident when you buy.
4️⃣ Expectation: “We qualified for $____, so we should spend it all!”
Reality:
Just because you can borrow the maximum doesn’t mean you should.
Buying at the top of your budget leaves no room for:
• renovations
• upgrades
• furniture
• landscaping
• cost-of-living increases
Looking at homes below your max budget can save you money and reduce financial stress.
A slightly less expensive home that needs cosmetic updating can be a smarter long-term move.
💡 Final Thought
The mortgage process is filled with moving parts, and the industry changes often.
But you don’t have to figure it out alone.
If you’re a first-time buyer and want clarity, confidence, and a true understanding of your real options, message The Frontline Mortgage Group. We’ll walk you through every step and help you buy with confidence. 💬