Top 10 Mortgage Mistakes to Avoid: A Comprehensive Guide by Shelto

Purchasing a home is one of life’s significant milestones, but the mortgage process can be complex and daunting. To help you navigate this crucial journey, Shelto, your trusted Canadian mortgage brokerage, has prepared this guide to the top 10 mistakes people make when applying for a mortgage – and how to avoid them.

1. Not Checking Your Credit Score

Mistake: Applying for a mortgage without knowing your credit score can lead to unpleasant surprises.

Solution: Obtain a free credit report from major credit bureaus, correct any inaccuracies, and take steps to improve your score if needed.

2. Failing to Get Pre-Approved

Mistake: Many homebuyers start house hunting before knowing how much they can afford.

Solution: Work with a Shelto mortgage agent to get pre-approved, so you know your budget and can shop with confidence.

3. Choosing the Wrong Mortgage Type

Mistake: Selecting a mortgage without understanding the terms can result in long-term financial strain.

Solution: Consult with Shelto to understand the differences between fixed, variable, open, and closed mortgages. Select the one that best fits your financial goals.

4. Overlooking Closing Costs

Mistake: Not budgeting for closing costs can lead to unexpected financial pressure.

Solution: Estimate closing costs (usually 1.5% to 4% of the purchase price) and include them in your budget. Shelto can provide a detailed breakdown.

5. Making Large Purchases Before Closing

Mistake: Buying big-ticket items like a car can alter your debt-to-income ratio, affecting mortgage approval.

Solution: Wait until after closing on your mortgage to make significant purchases.

6. Borrowing the Maximum Amount

Mistake: Just because you qualify for a specific amount doesn’t mean you should borrow it all.

Solution: Consider your lifestyle and long-term financial goals. Borrow only what you need and can comfortably repay.

7. Not Shopping Around for Rates

Mistake: Accepting the first mortgage offer without shopping around may result in higher interest rates.

Solution: Shelto’s mortgage agents can help you compare rates and terms from various lenders, ensuring you find the best deal.

8. Ignoring the Mortgage Fine Print

Mistake: Not reading or understanding the fine print can lead to misunderstandings and extra costs.

Solution: Review all mortgage documents carefully and ask Shelto’s agents to clarify anything you don’t understand.

9. Using an Unqualified Mortgage Broker

Mistake: Working with an unlicensed or inexperienced broker can lead to costly errors.

Solution: Choose a reputable brokerage like Shelto with experienced, licensed mortgage professionals who understand the Canadian market.

10. Lack of Long-Term Planning

Mistake: Choosing a mortgage without considering your long-term financial plan can lead to difficulties down the road.

Solution: Work with Shelto to align your mortgage with your future financial goals, whether that’s early retirement, investment, or saving for children’s education.


The mortgage process can be overwhelming, but avoiding these common mistakes can make the path to homeownership smoother and more enjoyable. By being informed, working with experienced professionals, and carefully considering your options, you can avoid these pitfalls.

Why Choose Shelto?

Shelto is committed to providing personalized, transparent, and expert guidance throughout the mortgage process. Our licensed agents are dedicated to helping you understand and avoid common mistakes, ensuring you make the best decisions for your unique situation.

At Shelto, we believe in empowering you with knowledge, providing tailored solutions, and building long-term relationships that extend beyond the mortgage transaction.


Note: This guide is intended for informational purposes only and does not replace personalized advice from a Shelto mortgage agent or other financial professionals. Individual circumstances and mortgage regulations may vary, and professional guidance is always recommended. Feel free to contact a Shelto mortgage agent to discuss your specific needs and questions.

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