As Financial Literacy Month shines a spotlight on money management, new survey findings suggest many Canadians may be overestimating how prepared they are to buy a home - especially when it comes time to close the deal.
According to a recent Ownright survey, nearly all respondents felt financially ready to enter the homebuying process. But that confidence often faded once the paperwork arrived.
“Ninety-seven per cent of people told us that they felt financially ready going into their purchase, but when it came to the paperwork, that confidence really starts to drop,” Ownright CEO Robert Saunders told Barrie 360's What Barrie's Talking About podcast. “Forty-six per cent of people said they had confusion around the closing costs and what the final number actually ended up being.”
Saunders says the disconnect often stems from buyers focusing heavily on the purchase price and mortgage amount, while overlooking the additional expenses tied to closing — a costly mistake during what is often the largest financial transaction of a person’s life.
“I think a lot of people are looking at that upfront purchase price or that upfront mortgage amount, but they forget the details,” he said.
Listen below to our full interview with Robert Saunders. It begins at the 10:38 mark.
The survey also suggests first-time buyers are particularly vulnerable. Many are navigating the process for the first time and can be caught up in the excitement of landing a home.
“It is a super emotional thing for a lot of people,” Saunders said. “It can be very easy just to sign on the dotted line and say, ‘Okay, we’re going to do this.’”
While nearly four in 10 respondents said they rely on online resources to educate themselves, only six per cent said they actually trust those sources. By contrast, more than half said they trust their real estate lawyer — a gap Saunders says highlights an opportunity to bring professionals into the conversation sooner.
“If you have that conversation with your lawyer before you put in an offer, before you have an accepted transaction, that can really help bring a little bit more confidence and clarity to things,” he said.
Those professionals can help flag expenses many buyers don’t anticipate, such as land transfer taxes, title insurance, property tax adjustments, legal disbursements, and lender requirements. In Ontario, the land transfer tax alone can add thousands of dollars to the final bill — especially for buyers in Toronto, where a municipal tax also applies.
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Saunders notes that transparency is just as important as affordability.
“Transparency is a really big thing,” he said, adding that buyers should look for tools and professionals who proactively explain costs and clearly communicate throughout the process.
As interest rates and housing prices continue to dominate headlines, Saunders says Canadians shouldn’t lose sight of the less visible - but equally important - financial details.
“Taking away some of the emotion and making sure you’re prepared ahead of time is really going to help you feel more confident at the closing stage,” he said.
During Financial Literacy Month, he hopes buyers will take the extra time to ask questions, verify information, and understand the true cost of crossing the threshold into home ownership.
