Don’t Finance Anything Between Mortgage Approval and Closing Day

Buying a home is one of the biggest financial moves you’ll ever make — and what you do after you go under contract matters more than most people realize.

If you’ve just been approved for a mortgage in Nova Scotia, congratulations. But before you start shopping for new furniture or appliances, there’s something every homebuyer needs to understand.

Your mortgage approval is not final until closing day. And one wrong financial move in between can put the entire deal at risk.

The Excitement Trap That Catches Buyers Off Guard

I get it. The excitement kicks in the moment your offer is accepted. You start picturing furniture layouts, scrolling through online stores, and those “no interest for 12 months” financing deals feel completely harmless.

But here’s the reality after 25 years in Nova Scotia real estate: financing a couch, a set of appliances, or any large purchase before closing can seriously jeopardize your mortgage approval.

I’ve personally seen deals fall apart over furniture purchases alone.

Why New Credit Can Kill Your Mortgage Approval

When your lender approved your mortgage, they based that decision on a financial snapshot — your income, your debts, your credit score, and your overall debt-to-income ratio at that specific moment.

Any change to that picture can change the outcome.

Here’s what happens when you finance a purchase or take on new credit before closing:

Your debt-to-income ratio shifts. Lenders use this ratio to determine how much mortgage you can carry. A new car payment, a furniture financing plan, or even a higher credit card balance can push your ratio beyond what your lender will accept. If you’re still in the early stages, understanding how mortgage qualification works is essential before you even start shopping for homes.

Your credit score can drop. New credit applications trigger hard inquiries on your credit report. Multiple inquiries in a short period, combined with new account openings, can lower your score enough to affect your mortgage terms — or disqualify you entirely.

Your lender will find out. This is the part most buyers don’t realize. Lenders re-check your credit and financial profile before closing, sometimes just days before you sign. This isn’t optional — it’s standard practice across Canadian lending institutions.

What Counts as a Risky Purchase Before Closing?

It’s not just big-ticket items. Here are common moves that can derail your home purchase:

Financing furniture or appliances — Even “no interest” or “no payments for 12 months” deals show up as new credit obligations on your report.

Opening new credit cards — Whether it’s a store card for a discount or a new rewards card, the hard inquiry and new account can hurt.

Making large purchases on existing credit cards — Running up your balances changes your credit utilization ratio, which directly impacts your score.

Co-signing a loan for someone else — That debt becomes your responsibility in the eyes of lenders.

Financing a vehicle — A new car payment can dramatically shift your debt-to-income ratio overnight.

Changing jobs or income sources — While not a “purchase,” any change to your employment or income during this period can raise red flags with your lender.

What Happens If Your Mortgage Falls Through?

If your lender pulls your updated credit report and finds new debt or a lower score, several things can happen and none of them are good.

Your interest rate could increase, adding thousands of dollars over the life of your mortgage. Your approved amount could be reduced, meaning you may no longer qualify for the home you’re under contract to buy. In the worst case, your mortgage approval gets revoked entirely.

At that point, you could lose your deposit, face legal action from the seller, and find yourself starting the entire homebuying process over again. And don’t forget — there are already significant closing costs when buying in Nova Scotia that you need to budget for without adding unnecessary financial complications.

The Simple Rule: Wait Until After Closing

For buyers: The golden rule is straightforward — don’t finance anything, don’t open new credit, and don’t make any major financial changes until after closing day. Celebrate after closing. Shop after closing. Finance after closing. Until the keys are in your hand, protect the deal at all costs.

For sellers: Understanding this process matters for you too. If your buyer’s financing falls through at the last minute because of a preventable credit issue, your home goes back on the market and valuable time is lost. A good Realtor® will help ensure all parties understand the importance of maintaining financial stability through to closing.

How to Protect Your Home Purchase

If you’re currently between mortgage approval and closing, here’s what you should do:

Keep your spending habits exactly as they were when you applied. Pay your bills on time and in the same amounts. Avoid applying for any new credit — including store financing offers. Don’t move large sums of money between accounts without talking to your lender first. If you’re unsure whether a financial decision is safe, ask your mortgage broker or lender before you act.

Your future home is worth more than any furniture sale or appliance deal. Those purchases will still be available after you close. If you’re a first-time buyer facing a tougher market than past generations, protecting your mortgage approval is even more critical — you’ve worked too hard to get here.

Working With a Realtor® Who Protects Your Interests

A good real estate agent doesn’t just help you find a home — they guide you through every step of the process, including the critical period between approval and closing. Part of my role is making sure my clients understand what’s at stake and how to avoid preventable problems.

Whether you’re exploring Nova Scotia’s Down Payment Assistance Program or navigating smart financial planning to make homeownership possible, I’m here to help you through every stage — from pre-approval to closing day and beyond.

If you’re buying or selling a home in Halifax, Dartmouth, East Hants, or the Truro area, reach out and let’s make sure your deal closes smoothly.

Rob Lough is a Broker/Owner and Realtor® with Century 21 Optimum Realty, serving Halifax Regional Municipality, East Hants, and Truro. With 25 years of experience in Nova Scotia real estate — including 20 years as a Realtor and 5 years as a Home Inspector — Rob brings a unique depth of knowledge to every transaction. Get in touch today.

Related Resources

• First-Time Buyers in Canada Face a Tougher Climb Than Past Generations
• How Nova Scotia’s 2% Down Payment Program Makes Homeownership More Accessible
• Closing Costs When Buying in Nova Scotia
• How Smart Planning Makes Homeownership Possible in Nova Scotia
• Canadian Mortgage Delinquency Rates in 2025
• Get Pre-Approved