Your Ottawa home search

Question 1

What are the first steps when buying a home in Ottawa?

Answer

There are actually two first steps when you are preparing to buy a home in Ottawa: hiring an Ottawa real estate agent and choosing a mortgage specialist (if you will require financing). Some people prefer to sort out their financing first, while others choose to hire a real estate agent in Ottawa who can help them find the right financing specialist based on their situation and needs.

Whichever you choose to do first, it is very important you have your financing arranged before you begin house-hunting.

Worth knowing: If you would like a list of experienced mortgage specialists, please get in touch and I’ll be happy to share my recommendations.

Question 2

Are being pre-approved and pre-qualified just different terms for the same thing?

Answer

Though they sound similar, these terms definitely do not mean the same thing. Here’s how each one works.

For pre-qualification: Your mortgage specialist can advise whether they think you will qualify for a mortgage based on some basic information including your income, monthly expenses and debts, the amount you have for a down payment, the approximate value of your current home (if applicable) and whether you qualify for a first-time home buyer program.

For pre-approval: You will need to complete a mortgage application, provide down payment details, proof of recent employment income, and information about debts and expenses. Your mortgage specialist will run a credit report and submit your application for approval from one or more lenders. Once they receive an approval, they will issue a pre-approval letter that includes the proposed interest rate, mortgage term, expected down payment, and available loan amount.

Worth knowing: You can read more about pre-qualification versus pre-approval here.

Question 3

What is the difference between a REALTOR^®, real estate agent and real estate broker in Ottawa?

Answer

In Ontario, once someone has completed the required training and passed exams, they are a real estate salesperson and are issued a real estate licence by the Real Estate Council of Ontario (RECO). If that person goes on to successfully complete additional courses and exams, they can become a real estate broker and are then permitted to manage or own a brokerage. A real estate salesperson or real estate broker may also be called a real estate agent, which is a more familiar term for many people.

To be identified as a REALTOR^®, a real estate salesperson or broker must be a member of the Canadian Real Estate Association (CREA). Membership in CREA is granted through the brokerage a salesperson works for, if that brokerage is a member of the local real estate board. Boards are members of both their provincial real estate association and CREA.

REALTOR^® is a registered trademark of the Canadian Real Estate Association in Canada and the National Association of REALTORS^® in the United States.

Worth knowing: I am proud to be a Canadian real estate broker and a REALTOR^®.

Question 4

Where can I get information on mortgages and the mortgage stress test?

Answer

Unless you are able to make a cash offer, arranging financing is the first step toward buying property. You can learn about the mortgage stress test and your options for mortgages by contacting a mortgage broker or financial institution.

While there may sometimes be compelling reasons to work with your bank, I believe clients are best served by working with a mortgage broker. An experienced mortgage broker can run a credit report for you and then "shop" your business to a number of lenders to find the best mortgage rate and terms to meet your needs. Banks can only offer you their own mortgage products, and their terms can be much more restrictive.

Whichever avenue you take, don’t shop around for mortgages on your own. When you go from one bank or financial institution to another, each may run a credit report. If many credit reports are run on your name in a short timeframe, it can negatively affect your credit rating.

Worth knowing: If you would like a list of experienced mortgage specialists, please get in touch and I’ll be happy to share my recommendations.

Question 5

What is the Vacant Unit Tax?

Answer

Ottawa’s vacant unit tax came into effect on January 1, 2023. All of the revenues collected through this tax will contribute to affordable housing initiatives in the city. The intent of the tax is to encourage property owners to live in or rent out properties they own and help increase Ottawa’s housing supply.

Each year, all homeowners in Ottawa must declare the status of their property or properties during the previous year. Any property unoccupied for more than 184 days in a given year is considered to have been vacant. Failing to make a declaration about a property will automatically classify it as vacant, and the tax will be applied to the owner’s property tax bill.

You can make your annual declaration online, in person by appointment, or over the phone. If you are unsure of your property’s roll number and PIN, please reach out and I will look it up for you.

Worth knowing: If you live in Ottawa, visit the City of Ottawa Vacant Unit Tax page for further information and to make your declaration.

Question 6

I want to sell my home. Do I have to have it staged?

Answer

You don’t have to stage your home before listing it for sale, but in many cases it’s worth doing. Properties that have been professionally staged and photographed attract more buyers and sales research tells us staged properties sell for more money in less time. What’s not to like about that?

Staging does not mean your home is unattractive, so please don’t take a recommendation to stage as an insult. A good stager works to neutralize your home and remove your personality so buyers can more easily see themselves in your space.

There are two other side benefits to staging. The first is that packing your personal photos and memorabilia helps protect your identity. The second is that making your home more neutral and less "you" helps you set aside your emotional attachment to the home and instead focus on it as a business asset you are preparing to sell. That detachment can help when it comes time to negotiate.

Worth knowing: This Forbes article provides a thorough overview of home staging.

Question 7

Can I buy a home in Canada if I am not Canadian?

Answer

At present, non-Canadians are generally not permitted to purchase homes in Canada, although there are some exceptions.

The Prohibition on the Purchase of Residential Real Estate by Non-Canadians Act (PPRA) came into effect on January 1, 2023, and will remain in place for at least two years. Commonly known as the "foreign buyer ban," the intent of the Act is to make it easier for Canadians to find homes in a market where housing is in short supply.

Worth knowing: The Canada Mortgage and Housing Corporation provides detailed and useful information about the Act and its exceptions.

Question 8

What is Land Transfer Tax (LTT)?

Answer

Land transfer tax is a one-time tax paid by a property buyer in Canada at the time they take possession of the property. The amount of the tax is based on the purchase price of the property being sold. It is included in the closing costs that are managed by the buyer’s lawyer when a property changes hands. You can visit this link to calculate the closing costs on a home’s purchase price.

Worth knowing: First-time homebuyers may qualify for a partial or complete refund of their land transfer tax.

Question 9

Do I have to have a home inspection?

Answer

There is no legal requirement for you to have a home inspection when you buy a home. But why wouldn’t you?

It is normal to worry about expenses when buying a home. It is likely to be the largest single asset you will own in your lifetime. But a home inspection and title insurance are two expenses well worth their cost, and both offer you protection as the homeowner. Being aware of any potential issues or defects in the home you want to purchase can save you a lot of money later on.

Worth knowing: If you’re debating the pros and cons of a home inspection, you may find this page a worthwhile read.

Question 10

What are "closing costs"?

Answer

Closing costs are costs that are incurred by a property buyer in the process of finalizing the purchase or sale of real estate. They can include land transfer taxes, pro-rated property taxes, legal fees, pro-rated water and sewer costs, deed and mortgage registration, title search, title insurance, and other miscellaneous expenses.

Your closing costs are usually laid out in a final letter from your real estate lawyer detailing the work they have done for you to complete the property purchase.

Typically, lenders and lawyers suggest budgeting an additional 2 to 4 per cent of the purchase price for closing costs. I recommend setting aside 3 per cent of the purchase price. If all of the budgeted funds aren’t needed, you’ll have money left over, which is always welcome.

Worth knowing: Have a read of my blog post for more information on closing costs.

Question 11

What is title insurance?

Answer

Title insurance is an insurance policy that protects property owners in the event of title issues such as fraud, unregistered easements, unexpected liens against the property, or errors on surveys or in public records.

Buying title insurance is optional, but as a one-time expense included in the closing costs, it is recommended, since it can make the closing process easier. Title insurance remains valid for as long as you own the property. To learn more, please visit my blog post.

Worth knowing: The Financial Services Regulatory Authority of Ontario (FSRA) website is a great resource for learning more about title insurance.

Question 12

What time of year is the best time to sell my home?

Answer

Some would say any time of year is the best time. If you need to sell your home because you are relocating, or for personal or financial reasons, then list it anytime. The real estate market never closes.

Having said that, there are more active and less active seasons, so if you’re looking to attract the largest group of prospective buyers and get the best price in the shortest time, spring and fall are typically the busiest and best times to buy or sell.

Worth knowing: One of the benefits of working with a real estate agent is their understanding of the real estate market from season to season and year to year. If you’d like to discuss the current real estate market in Ottawa, please call or email to make an appointment.

Buying or selling? I can help!

Your Ottawa home search

Let’s make your dream a reality.

Sell for more money, in
less time, with less stress

Helping buyers and sellers in Ottawa since 2005

Featured Ottawa homes for sale

Helping buyers and sellers in Ottawa since 2005

Sell for more money, in
less time, with less stress

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Title Insurance: What is it?

Pre-approved versus pre-qualified for a mortgage in Ottawa: What’s the difference?

Questions people are asking real estate agents in Ottawa

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Buying or selling? I can help!

Your Ottawa home search

Let’s make your dream a reality.

Sell for more money, in less time, with less stress

Helping buyers and sellers in Ottawa since 2005

Featured Ottawa homes for sale

Helping buyers and sellers in Ottawa since 2005

Sell for more money, in less time, with less stress

Client reviews

Ottawa real estate collections

New builds for sale in Ottawa

Condos for sale in Ottawa with electric vehicle charging stations

Condos for sale with underground parking in Ottawa

Homes for sale with inside entry garage in Ottawa

Homes with unfinished basements for sale in Ottawa

Homes with a pool for sale in Ottawa

Ottawa real estate homes for sale by location

Wendy’s Ottawa real estate notebook

Closing Costs Ottawa Real Estate

Ottawa Police and Crime Prevention Resources

Schools & Education Resources

Ottawa Real Estate Resources

Title Insurance: What is it?

Pre-approved versus pre-qualified for a mortgage in Ottawa: What’s the difference?

Questions people are asking real estate agents in Ottawa

Ottawa’s best real estate agent newsletter

Top Locations

Top Collections

Contact Us

Sell for more money, in
less time, with less stress

Sell for more money, in
less time, with less stress