Mortgages Ottawa

Kale
Author:
Kale
Kale Havervold
Expert Contributor at Loans Canada
Caitlin
Reviewed By:
Caitlin
Caitlin Wood, BA
Editor-in-Chief at Loans Canada
Caitlin Wood has more than a decade of experience helping Canadian consumers learn how to take control of their finances. Expertise:
  • Personal finance
  • Consumer borrowing
  • Credit improvement
  • Debt management
📅
Updated On: October 4, 2021
Get a free, no obligation personal loan quote with rates as low as 9.99%
Free quote with no impact to your credit

It’s fair to say that Ottawa is one of the most popular places to live in Canada. It’s the country’s capital and home to nearly one million residents. You would think this popularity would lead to an expensive housing market, but that isn’t actually the case.

While the year-over-year change in average price of a house in Ottawa, as well as the rest of the country, has been on the rise, the current average home price is still below the national average. As a result, if you live in Ottawa, buying a home could be a good financial choice. However, when thinking about mortgages, it is important to consider more than just the total amount you want to borrow.

Looking to enter the Canadian housing market today? Here’s how you can do it.

How to Compare Mortgage Offers in Ottawa?

While the total amount of the mortgage is definitely something to think about, there are many other things to consider when it comes to your mortgage. First and foremost, you need to think about the interest rate. The interest rate you have will dictate how much you end up paying back over the lifetime of the loan. You want to get the lowest interest rate possible to save as much as you can.

However, there are a number of other things to look at when comparing one mortgage offer to another in Ottawa. These include things like:

  • The term
  • The amortization period
  • Is the mortgage closed or open?
  • Is the interest rate variable or fixed?
  • Are there any prepayment penalties, options or restrictions?

All of these factor into which mortgage is widely considered better than another. Of course, certain lenders in Ottawa will only offer certain loans or mortgages. So in order to get the best mortgage possible, you need to visit a number of different lenders in and see the sorts of deals that they have. Without visiting multiple lenders in Ottawa, you might miss out on a great option. Once you have found the right lender and the right mortgage for your needs, you should feel comfortable enough to apply.

Read this if you’d like to negotiate the best mortgage contract this year.

Check out this infographic to learn how to go from un-bankable to bankable.

How to Save For a Down Payment in Ottawa

While getting a mortgage in Ottawa is probably the most important step to in the home buying process, it isn’t the only thing you need to do. Another important thing to remember is to save up for a down payment. A down payment is an up-front lump sum payment that you make to offer the lender some assurance that you can afford the loan you are taking. Generally, down payments for homes are anywhere between 5% and 20%.

You want to make the largest down payment you can reasonably afford, as it can often get you a better interest rate and thus, the loan will cost less over the years. Also, a higher down payment will mean smaller payments, less (or no) mortgage insurance and potentially even a shorter amortization period.

Not sure how long you should amortize your mortgage for? Find out here.

So just how do you save up for a down payment in Ottawa? Well, the best way is to simply create a separate bank account and put money in it each and every month. You may need to cut down discretionary spending and potentially eliminate some expenses, but saving for a down payment is worth it. Other ways to save are to skip the vacation, borrow money from friends or family, sell an asset, or even sell an investment. How long you save for the down payment is completely up to you and will depend on how large you want it to be.

Click here if you think you’ll need to borrow money for your down payment.

Hidden Costs of Buying a Home in Ottawa

While your mortgage and down payment are likely the largest costs you will incur when buying a home in Ottawa, they are not the only ones. In fact, there are a number of “hidden costs” that you will be responsible for that need to be considered. These are things like:

  • Moving costs
  • Taxes (property taxes, welcome taxes, land transfer taxes, etc…)
  • Home inspection
  • Closing costs
  • Legal costs
  • Renovations
  • Maintenance

As you can imagine, these costs can quickly and easily end up being thousands and thousands of dollars. How much each of these things cost exactly will depend, but it is a good idea to be aware of them. If you cannot afford these hidden costs, it is best to refrain from buying a house in Ottawa until you are able to.

Want some information about mortgage closing costs in Ontario? Check this out.

Helping You Find a Great Mortgage in Ottawa

Looking to buy a home in Ottawa and need a mortgage? Loans Canada can help content you with a licensed third-party mortgage professional in your area.

Note: Loans Canada does not arrange, underwrite or broker mortgages. We are a simple referral service.

Special Offers

Recognized As One Of Canada's Top Growing Companies

More From Our Experts

https://loanscanada.ca/wp-content/uploads/2016/08/interest-adjustment.png
Interest Adjustment Date: The Mortgage Term You Didn’t Know You Needed To Know

By Sean Cooper
Updated on June 24, 2025

Everything you need to know about Interest Adjustment dates, an often forgotten closing cost when buying a home.

https://loanscanada.ca/wp-content/uploads/2022/03/Financing-a-Tiny-House.png
Tiny Home Mortgage In Canada

By Lisa Rennie
Updated on June 24, 2025

Thinking of buying a tiny home instead of a regular house? Find all the tiny home mortgage options in Canada.

https://loanscanada.ca/wp-content/uploads/2020/08/Semi-Truck-Brands-Canada.png
The Best Semi-Truck Brands In Canada

By Bryan Daly
Updated on June 19, 2025

Looking for the right semi-truck for your business? Here are the top semi-truck brands on the market.

https://loanscanada.ca/wp-content/uploads/2016/12/caution-1.jpg
Beware of Fraudulent Lenders Impersonating Loans Canada

By Caitlin Wood, BA
Updated on June 17, 2025

A note to our clients about fraudulent lending practices and illegal upfront fees.

https://loanscanada.ca/wp-content/uploads/2024/06/farm-mortgage-1.png
How To Get A Farm Mortgage

By Bryan Daly
Updated on June 16, 2025

Thinking about investing in a farm or rural real estate, we've compiled everything you need to know.

https://loanscanada.ca/wp-content/uploads/2015/11/lines-of-credit-1.jpg
Guide On How To Use A line Of Credit

By Caitlin Wood, BA
Updated on June 13, 2025

Learn how a line of credit works, how to qualify, how to use it wisely, and how it compares with other borrowing options.

https://loanscanada.ca/wp-content/uploads/2018/08/Loans-with-a-cosigner.png
Types Of Loans You Can Get With A Cosigner

By Lisa Rennie
Updated on June 13, 2025

Personal loans with a cosigner are a no-brainer for borrowers with low credit or those who want to qualify for lower rates and better terms.

https://loanscanada.ca/wp-content/uploads/2018/07/Loans-with-a-guarantor.png
How To Get A Guarantor Loan In Canada

By Bryan Daly
Updated on June 12, 2025

Looking for loans with a guarantor in Canada? We have all the information you need about guarantor loans, check out this article.

Why choose Loans Canada?

Apply Once &
Get Multiple Offers
Save Time
And Money
Get Your Free
Credit Score
Free
Service
Expert Tips
And Advice
Exclusive
Offers