The Mistakes That Keep Showing Up

Helping homeowners across Port Coquitlam, Coquitlam, Port Moody, and the rest of the Tri-Cities for more than 20 years means seeing patterns. The same expensive missteps repeat — often by smart, well-intentioned people who simply didn't have the right information at the right time.

Here are the five most expensive mortgage mistakes Tri-Cities homeowners are making in 2026, and exactly how to avoid each.

Mistake #1: Signing the Renewal Letter Without Shopping

What it looks like: Your existing lender sends you a renewal letter 60-90 days before your term ends. The letter contains a rate they're "happy to offer." You sign and mail it back.

What it costs: Typically 0.20%-0.45% above what an active shopper would secure. On a $600,000 mortgage balance over a 5-year renewal term, that's $8,000-$17,000 of unnecessary interest.

How to avoid it: Start shopping 4 months before your renewal date. Get a 120-day rate hold from a broker. Use that as leverage — either to switch lenders, or to negotiate harder with your existing lender. Either way, you win.

Mistake #2: Maximizing Tax Deductions Right Before Applying

What it looks like: You're self-employed or have rental income. Your accountant maximizes every legal deduction to minimize your tax bill. You then apply for a mortgage and discover your qualifying income is far below your actual income.

What it costs: Can reduce maximum mortgage approval by $200,000-$500,000. For a buyer trying to enter the Burnaby or Port Moody market, this is often the difference between qualifying for the home you want and not qualifying at all.

How to avoid it: If you're planning to buy within 2 years, talk to your broker before filing your next return. In many cases, reducing deductions deliberately for the 2 qualifying tax years — paying perhaps $8,000-$12,000 more in tax — unlocks $200K-$400K more in mortgage approval. A good broker coordinates with your accountant on this.

Mistake #3: Buying a Car Right Before (or During) Buying a Home

What it looks like: You're approved for a mortgage. You celebrate by buying a new car — financed, of course, $700/month payment. Then a few weeks later your final mortgage approval gets revisited and the lender pulls your application.

What it costs: Best case, you lose your offer and your earnest money is at risk. Worst case, the deal collapses entirely. Every $100/month of new debt payment reduces your maximum mortgage approval by approximately $15,000-$20,000. A $700/month car payment can cut your approval by over $100,000.

How to avoid it: Don't take on new debt of any kind between pre-approval and possession day. Yes, even the "0% financing" offer. Yes, even the credit card with the airline miles bonus. Hold all major financial moves until after you have keys in hand.

Mistake #4: Choosing a Mortgage Based Only on Rate

What it looks like: Two lenders offer you a mortgage. Lender A: 4.79% with restrictive prepayment privileges and an aggressive penalty calculation. Lender B: 4.84% with strong prepayment privileges and a standard IRD calculation. You pick Lender A because 4.79% is lower.

What it costs: If you ever break the mortgage before term — refinance, sell, or move — the penalty difference can be $15,000-$35,000. Statistically, more than 60% of Canadian homeowners break their mortgage mid-term. The "lower" rate often ends up being the more expensive total package.

How to avoid it: Look at the whole product, not just the rate. Specifically ask about: (1) Penalty calculation method — IRD vs simple three months. (2) Prepayment privileges — 10%, 15%, or 20% lump sum annually? (3) Port-ability if you move. (4) Increase-payment privileges. A small rate trade-off for substantially better features often saves real money.

Mistake #5: Refinancing Without Modelling Total Cost

What it looks like: Rates have dropped. Someone tells you "you should refinance to save money." You refinance, get the lower rate, and feel good about it.

What it costs: Depending on your situation, refinancing without proper modeling can actually cost you money. The penalty on your existing mortgage, appraisal fees, legal fees, and the cost of resetting your amortization can outweigh the interest savings.

Real example: A Coquitlam homeowner with 3 years left on a fixed-rate term recently asked about refinancing. The penalty was $22,000. Switching to a new 5-year term at a 0.6% lower rate would save them roughly $14,000 over the new term. Net result: refinancing would have cost them $8,000, not saved them money.

How to avoid it: Always model total cost before refinancing. The calculation: (interest savings over new term) – (penalty + closing costs + any amortization extension cost) = net benefit. If that number is negative, don't refinance. A broker can run this in 15 minutes.

The Common Thread

Look at all five mistakes. The common thread isn't financial literacy — it's not having the right conversation at the right time.

A 15-minute call with a broker before any major mortgage decision (renewal, refinance, purchase, refinance to invest) would prevent every one of these mistakes for every Tri-Cities homeowner. The conversations are free. The information is yours to use. The decision stays with you.

If you're at any of these decision points right now — renewal in the next 6 months, considering a refinance, contemplating a purchase, or just curious whether your existing mortgage is set up well — book a free 15-minute consultation. No pressure, no pitch, just numbers and your specific situation.

Talk to a Local Broker Who Actually Knows This Market

Milka Lukacevic has spent more than 20 years helping homeowners across the Lower Mainland — Port Coquitlam, Coquitlam, Burnaby, Pitt Meadows, Port Moody, and beyond — secure financing that works for their real lives. Independent. Free consultation. Over 30 lender relationships.

Book a free 15-minute call or call 604-942-4042 — most clients have a clear path forward by the end of the conversation.

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