CategoriesReal Estate Agent, Real Estate Tips

5 Ways for Buying Property in Ottawa’s Hot Sellers’ Market

The provincial government has introduced the first phase of its More Homes For Everyone Act to tackle the housing shortage by implementing measures, including working with municipalities to get homes built faster and increasing the Non-Resident Speculation Tax. This is a good start, and we are hopeful that with the application of these and further measures, Ottawa’s many potential home buyers waiting on the sidelines will finally be able to get a foothold in our local market.

Pre-Approval

It is important to be qualified or pre-approved for financing before you start looking for a home. This lets you and your RE/MAX Hallmark REALTOR® know what you can afford as well as providing a written confirmation or certificate for a fixed interest rate good for a specific period of time. To obtain pre-approval, contact your RE/MAX Hallmark REALTOR® or mortgage broker. The benefit of a mortgage broker is that he or she operates independently of the lender and therefore can assist you in finding the best financial product at the best rate from a variety of sources and usually at no expense to you.

I hear buyers all the time saying “Homes for sale near me are way too expensive! When will I ever be able to afford these ridiculous prices!”.

Let me help you!

Homes for Sale In Ottawa continue to rise in price. Below, I will give you information on how you may be able to purchase a home in Ottawa.

  1. Conventional Mortgages

The maximum amount of conventional mortgage is 80% of the purchase price. The amortization or length of time in which to repay the loan is usually 25-30 years. The term of the mortgage is the number of months or years, usually six months to five years, for which the rate of interest is set.

  1. High Ratio Mortgages

For most people the hardest part of buying a home, especially the first one, is saving for the necessary down payment. With mortgage loan insurance, you can put as little as 5% down payment on homes up to $500,000.

  1. Refinance

If you already have a property you may want to think about refinancing it, this way you can come up with the down payment for your next purchase/investment. Your mortgage broker can help you determine if this is a possibility.

  1. Off Market Listings

It is important to have the right Real Estate Agent and Brokerage working for you. RE/MAX is the top selling Real Estate Brokerage in Ottawa. Selling more than 13,000 homes in 2021. Our biggest competitors sit at 11,380 homes sold in 2021 and all other brokerages are at 2,500 sales and below. RE/MAX Real Estate Agents have a huge advantage, being able to market their Ottawa homes for sale to an exclusive group of top producing agents. If you work with a RE/MAX agent, you will have access to these off market listings.

  1. Using Your RRSP To Purchase

The Home Buyers’ Plan (HBP) allows each RRSP plan holder to borrow up to $25,000 from the plan to use towards the down payment of a home. Couples with separate plans can borrow up to $25,000 each up to a total of $50,000. Home buyers using this program have up to fifteen years to return the borrowed funds, interest free, to their RRSP. Using these funds towards the purchase of a home does not deregister the plan unless the monies are not returned as agreed. This allows participants to retain the tax advantages the RRSP offers.

New homes for sale in Ottawa are perhaps another option for buying. Since these homes take a year or more to close, this may give buyers the time they need to gain a down payment, or become more financially ready for closing costs. New home builders like Minto, Mattamy, Caivan, etc. can’t keep up with demand, selling out within minutes of new community and home releases. It is important to have your real estate agent work for you and help you get a new build home before they sell out.

There are many ways to buy a property in this hot Seller’s market. You need an agent you can trust working on your behalf to guide you through the process and teach you about opportunities you may not be aware of.

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CategoriesReal Estate Agent, Real Estate Tips

Things to consider when buying a house in Ottawa

Every listed home should meet the basic expectations of any buyer; it should have a sound roof, functioning gutters and downspouts, foundation without cracks, functioning heating and/or air-conditioning system, solid subflooring, and safe and secure electrical wiring. With financer-mandated home inspections, any shortcomings may be require to be remedied to get buyer financing approval.

Houses for sale in Ottawa are sometimes priced lower than market value, which means they have more buyers looking at the house (even buyers who can’t afford it). This is creating bidding wars between buyers and ultimately leading to an over asking sales price. Your real estate agent can help guide you through this elaborate offer process.

It is important to understand that the market value of a home is determined by the prices of comparable homes recently sold in the area. Always ask your real estate professional which areas are more desirable and why. This can help you choose how much you want to spend on your home. Here are other things/costs to keep in mind during the home buying process.

Closing Costs?

Before making a home purchase there are many things to consider, hidden fees are one of them. Here is a list of closing costs you may expect:

  • Appraisal Fees
  • Inspection Fees
  • Lawyer Fees
  • Land Transfer Taxes

Extra Costs?

There are also ongoing costs associated with owning a home. Some of these costs include the following:

  • Property Taxes – These depend on the location and size of the property.
  • Maintenance and Repairs – Things like the roof, furnace, and A/C are more costly repairs for a home, but you also have to keep in mind all the small repairs throughout the year
  • Home Insurance – This is sometimes bundled in with your mortgage payment

Do You Have a Mortgage Broker?

Having a reliable mortgage broker is extremely beneficial when it comes to finding the best rate for your mortgage and can take a lot of the stress out of the buying process.

How Much do Utilities Cost?

Utilities can vary a lot from house to house, do some research on the property you want to purchase so there are no surprising charges. These are some (not all) of the utility costs you may expect:

  • Electricity
  • Gas
  • Water/Sewer
  • Trash/Recycling
  • Telecommunications (internet, cable, phone, etc)

The best way to get an estimate is to ask your real estate agent to ask the Sellers what they pay. Otherwise, you can contact the providers for each cost.

After speaking to your mortgage broker, they will be able to tell you what you can afford to buy. This is when you can start your search! When looking for homes there are the basics that you want to know about each home. Your real estate agent will be able to give you information to any questions you may have.

Buying a home is more than simply entering a google search for “Homes for sale near me. Listed below are all questions you and your agent should ask for any homes of interest:

Are there any problems currently with the house? Have there been any in the past?

Leaks, foundation cracks, roofing issues, etc. should all be relayed to a serious buyer.

How old is the roof, A/C, furnace, windows?

These three things are the most costly to replace, having them recently updated would mean that you don’t have to worry about that extra cost for a while.

Have there been any improvements to the home?

Additions and improvements usually bring value to the home. Sometimes it brings more value to the Sellers than Buyers.

What is the heating system?

A modern heating system is more appealing to buyers, natural gas and forced air.

Are there any safety hazards?

Mold, pests, poor air quality, etc., can all devalue a home, and are certainly not a selling feature.

Is the home still under Tarion Warranty?

Tarion Warranty is a new build home warranty program. You can expect to be covered (for certain things) up until a certain number of years.

Is the home stigmatized?

Has someone passed away in the home? Has someone grown marijuana in the house? These are both examples of stigmas of a house, things that devalue a house.

How is the neighbourhood? Crime rates?

Always look online and ask your agent about the neighbourhood and crime rates.

A real estate professional can help you navigate the purchase of your home, answer any questions, and alleviate some of the stress that comes with this investment.