Ottawa Housing Market Trends: For Buyers and Sellers Capital Mortgages

Ottawa Housing Market Trends

Ottawa Housing Market Trends: For Buyers and Sellers

The Ottawa real estate market is in a constant state of change and is always adapting to new market factors. For buyers and sellers, this can make navigating the housing market more challenging than usual. This blog post will address some of the unique challenges in the Ottawa housing market, and how you can overcome them. Let’s dive in!

Changes in the Ottawa Real Estate Market

By almost every metric, the Ottawa real estate market is on a hot streak. If you’re in the market to buy, or if you’re a homeowner looking to sell, you’re in luck. There are a few reasons why the Ottawa housing market is excelling.

The First Time Buyer Tax Credit is Running Out – Time is running out for First Time Buyers to claim the $5,000 First Time Buyer Tax Credit. In Ottawa, this tax credit has led to a surge of First Time Buyer activity, pushing prices up and inventory down. It’s likely that many FHBs will want to get into the market before the end of 2022, so it may be a good time to take action.

Low Interest Rates – Interest rates have been at record lows for almost a decade, making home ownership much more affordable. This has led to a rush of first time buyers into the market, as well as people buying their next home, rather than staying put. This has pushed the Ottawa housing market beyond the point of balanced demand and supply, and into an environment of high demand and low supply.

Immigration and New Job Creation – Canada is seeing record numbers of new immigrants annually. In fact, in 2018, Ottawa saw a record number of newcomers, with nearly 45,000 new residents settling in the capital city. As newcomers are often looking for housing, this has led to higher demand in the Ottawa real estate market. New job creation, particularly in the tech sector, has also contributed to higher demand for housing.

High Demand and Low Supply

The Ottawa real estate market is showing signs of overheating. This is evidenced by a high demand for homes, and low supply of homes on the market. This is a trend that will likely continue throughout the rest of 2022, and into 2023. As the First Time Buyer Tax Credit is may eventually end, it’s likely that demand for housing will drop off, and supply will increase. It’s a good idea to keep an eye on the market, and be prepared to take action based on market conditions.

Finding Your Perfect Match

Finding a home that meets your needs is a challenge in any market. However, in a competitive market like Ottawa, it can be much more difficult. For example, let’s say you’re looking to buy a house in Ottawa. The average price for a house in Ottawa is currently just over $420,000. If you’re a First Time Buyer, your budget is likely less than this.

This means you’ll be looking at less expensive neighbourhoods, where there is less demand. This can make it difficult to find a home that meets your needs. It’s a good idea to be flexible when looking for a home. This will help you find a home that meets your needs, while also being in a neighbourhood that has less demand.

The Competition Is Heating Up

When you’re buying a home, or selling a home, it’s always important to have a competitive edge. That’s even more true in a high demand market like Ottawa. For example, if you’re buying a home in Ottawa, you’ll want to make sure you have a strong offer. The higher your offer, the more likely it is to be accepted. You’ll also want to make sure that your financing is in order. Some buyers try to secure financing after they’ve entered into a purchase contract, which leads to a drawn out and stressful process. Let Capital Mortgages help you with a pre-approved mortgage before you start your Ottawa search.


We’ve explored what is happening in the Ottawa real estate market, how these changes impact buyers and sellers, and what you can do to navigate these changes successfully. There are a few key points to keep in mind throughout this process. First, it’s important to understand the current state of the market. This will help you adapt your strategy and navigate the market successfully. Next, make sure to have a realistic view of the market. You’ll want to know what you can afford, and what properties are currently selling for. Last but not least, don’t get discouraged. The Ottawa real estate market can be challenging, but with the right strategy, it can be fun and rewarding.

We here at Capital Mortgages in Ottawa look forward to assisting you with all your Ottawa mortgage refinancing needs. Contact us today by calling us at: 613-228-3888 or email us direct at:

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Capital Mortgages Inc is an independent brokerage in the Mortgage Centre Canada Network and one of Ontario’s leading real estate mortgage brokerages with offices in Ottawa and the valley.

10 Mortgage Terms Every First-Time Homebuyer Should Know

Buying your first home can be an overwhelming venture. If you are not financially-savvy, then terms such as ‘amortization period’ and ‘variable-rate mortgage’ may have you scratching your head in confusion. To help ease some of your worries, our expert team of brokers at Capital Mortgages have gathered together the top ten mortgage terms that every first-time homebuyer should know:


Amortization Period

The mortgage amortization period is the number of years it takes to repay the entire amount of the financing based on a set of fixed payments. Historically, the standard amortization period has been 25 years. However, shorter and, in some cases, longer time frames may be available depending on the amount of down payment you have available.


Mortgage Term

Not to be confused with the mortgage amortization period, the mortgage term describes the period of time your mortgage financing agreement covers. After the mortgage term has ended, you will have the choice to repay the remainder of the loan in full or renegotiate a new mortgage at current interest rates. The terms available are six months, or one, two, three, four, five, six, seven, and ten year terms, with the interest rates fixed for whichever length of term you choose.


Down Payment

When buying a home in Canada, a minimum down payment of 5 per cent of the purchase property value is required. In addition to the down payment, you must also be able to show that you have the capacity to cover other closing costs such as the legal fees and disbursements, appraisal fees and a survey certificate. At least 5 per cent of the down payment must be from your own cash resources and not a borrowed amount from a financial institution.



The principal describes the original amount borrowed in your mortgage loan, before interest. As you make regular mortgage payments, this number will decrease.


Gross Debt Service Ratio (GDS)

This is one of the mathematical calculations used by lenders to determine a borrower’s capacity to repay a mortgage. It takes into account the mortgage payments, property taxes, approximate heating costs, and a percentage of any condo maintenance fees, and this sum is then divided by the gross income of the applicants.  Maximum ratios based on your credit history range between 32 per cent and can go as high as 39 per cent.


Total Debt Service (TDS) Ratio

This is the other mathematical calculation used by lenders to determine a borrower’s capacity to repay a mortgage. It takes into account the mortgage payments, property taxes, approximate heating costs, and a percentage of any condo maintenance fees, and any other monthly obligations (i.e. personal loans, car payments, lines of credit, credit card debts, other mortgages, etc.) This sum is then divided by the gross income of the applicants. Ratios up to 40 per cent are acceptable.


Fixed Rate Mortgage

The interest rate for a fixed rate mortgage is locked in for the term of the mortgage. Payments are set in advance for the term, providing you with the security of knowing precisely how much your payments will be throughout the entire term. Fixed rate mortgages can be open (may be paid off at any time without breakage costs) or closed (breakage costs apply if paid off prior to maturity).


Variable Rate Mortgage

With a variable rate mortgage, mortgage payments and interest rates may fluctuate up and down during the term. Regarding variable rate mortgages with a fixed payment: if interest rates go down, more of the payment is applied to reduce the principal. If rates go up, more of the payment is applied to payment of interest. For variable rate mortgages with a variable payment: if interest rates go down, the payment goes down. If rates go up, the payment goes up. Variable rate mortgages may be open or closed. A variable rate mortgage provides you with the flexibility to take advantage of falling interest rates and to convert to a fixed rate mortgage at any time.


Conventional Mortgage

A mortgage up to 80 per cent of the purchase price or the value of the property. A mortgage exceeding 80 per cent is referred to as a “High-Ratio” mortgage and the lender will require insurance for that mortgage.


High-Ratio Mortgage

A mortgage that exceeds 80 per cent of the purchase price or appraised value of the property. This type of mortgage requires mortgage default insurance.


If you are still a little confused, or would prefer to talk to someone in person about securing your first mortgage, then do not hesitate to reach out to our team! With 20 years of experience in the mortgage business, we have the expert knowledge required to guide you effortlessly through getting your first mortgage and beyond.


The Difference Between Fixed and Variable Mortgage Rates


Do you know the difference between fixed-rate mortgages or variable (sometimes called adjustable-rate) mortgages? Each mortgage type is affected by different market conditions and each offers its own advantages or disadvantages.  One of the most important steps in financing your home is choosing which type of mortgage suits your individual situation best.


Fixed-Rate Mortgages

In Canada most mortgages are 5-year “fixed-rate” terms.  A fixed-rate mortgage has an interest rate that is “fixed” for the term of your mortgage.  It does not change. As a result, the mortgage payment will not vary and the amount of principle and interest paid is completely predictable.

The largest advantage of a fixed-rate mortgage is the protection from rising interest rates (since your rate is “fixed”). At the end of the term you would renew your mortgage at the rates that are in place at that time.  Like most homeowners, if you need to keep your payment within a budget this is the choice for you.

The potential drawback of a fixed-rate mortgage is that if interest rates decline you cannot easily take advantage of that.  It is also potentially more expensive to break this mortgage before your term matures.


Variable / Adjustable-Rate Mortgages

A variable or adjustable-rate mortgage is exactly what it says.  The interest will change (increase or decrease) based on market conditions.  Specifically, on what the Bank of Canada does with the Prime Lending Rate.  If they increase it your rate (and mortgage payment) will increase at the same time.  The same with a decrease.  Your mortgage payment in most cases does not remain the same.  The Bank of Canada meets eight times a year to determine this rate.

One of the biggest advantages to a variable rate mortgage is the potential interest cost savings.  Your interest rate is set based on a discount from the Banks Prime rate.  Today, the prime rate is 3.45%.  The average discount below that is .80% for a rate of 2.65%.  This is lower than fixed rates.  Because of the lower rate, your mortgage payment may be smaller.

However, the drawback of a variable rate mortgage is that if rates rise so does your payment and interest cost.  It is not predictable like a fixed rate mortgage is.  If you have a fixed budget, this may not be the product for you.


Your choice will depend on your own personal finances, current interest rates and market trends. If you need assistance in choosing which mortgage is right for you, please don’t hesitate to contact Capital Mortgages today.