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.

2. 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.

3. 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.

4. 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.

5. 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.