The First-timer's Guide to Buying A Home in Ottawa

The First-timer’s Guide to Buying A Home in Ottawa

There will be lots of firsts in your lifetime, but buying your own home ranks up there with one of the most exciting…and arguably the most daunting. After all, there are serious financial and logistical decisions involved in it.

We can’t blame you if you don’t know where to start. It’s why we decided to put together this comprehensive guide for first-time home buyers in Ottawa.

Hopefully, the resources we provide here will help point you in the direction of your first house with an understanding of all the processes (and costs) involved.

How Much Do Houses Cost in Ottawa?

To give you an idea of how much homes in Ottawa cost by the end of 2021, we looked up average prices of different property types. A report from the WOWA website explains how the average price of an Ottawa house increased by 19% from the previous year.

By November 2021, condos in Ottawa saw a significant 7% increase in sales compared to the previous month. In comparison, single-family home sales increased by only 2% between September and October 2021.

But what about other housing types and their price tags? To serve as a guide, we put together a table to show the average pricing of different types of homes by the end of 2021.

HOUSING TYPE AVERAGE PRICE
Single-family$716,992
Condo apartment$432,099
Townhouse$694,412
Bungalow$735,199
Split-level$837,667
2 storey$666,434
3 storey$779,667

10 Steps to Buying a Home in Ottawa

Before picking out a house that best suits your family’s lifestyle and needs, you’ll need to look at important factors first. Things like location, comparable properties, and the real estate market all need to be considered, too.

The great news for first-time homeowners in Ottawa is that the region is currently an ideal place to buy properties. By December 2021, the Ottawa Real Estate Board estimated that the average price of a home in the area is around $644,158. 

Another good incentive for home buyers is that Ottawa holds the 21st lowest property tax rates in Ontario, according to the WOWA website. Please note that your property tax is computed based on your home’s assessed value or its most recent market price. 

So we did the research and came up with a checklist of ten of the most important items to tackle when buying a home for the first time. It covers everything from determining your budget to having your new home thoroughly inspected before moving in.

1. Figure Out (And Work Towards) Your Budget

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Several factors can affect how much a house costs either directly or indirectly. Of course, deposits, taxes, and other and fees should also be factored into your budget. 

But don’t fret If you aren’t well-versed in real estate taxes and regulations. For matters like these, you can always seek professional help from tax lawyers and realtors who can help you figure them out efficiently and thoroughly.

You’re likely wondering how much money you’ll need to purchase your first home. The first thing you have to remember is that it’s a major financial decision that shouldn’t be rushed or put together haphazardly.

We previously posted a handy guide on financial planning and literacy that explains how having good credit and identifying your financial goals can help you achieve a secure financial future. 

If you haven’t done this step yet, it’s vital to do so to be able to start saving money for your first house.

To achieve this, you can start by paying your bills on time and not racking up debt (credit card or otherwise). Doing so will make your credit score more attractive.

And if you do have a significant credit card debt to pay, start working towards paying it in full instead of simply paying the interest and just dragging it out for years. Late payments also contribute to negative credit scores, so make sure you’re never tardy with them.

2. Look Up Financing Options

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No ifs or buts about it; you’re going to have to do some research on financing options before buying a home. This enables you to have payment choices for the type of house or property you want to purchase.

There are different types of financing available for various kinds of homes including single-family houses, condominium units, and townhouses. There’s also a variety of contracts to consider for their fixed or adjustable rates.

Unless you have a trust fund or have enough money lying around to spend on a new house, you’ll likely need the assistance of top loan services in Ottawa, too. Most of these companies offer home equity or mortgage loans and can advise you on the best options based on your credit score.

And speaking of mortgage, you could also consider professional mortgage services to get your home properly appraised and evaluated. Look for ones with reasonable fixed or variable rates and those with a solid track record for having satisfied clients.

3. Research Home Buyer Programs

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After saving up, consulting with reliable realtors, and hitting up banks for possible loans, it’s also good to research home buyer programs. You can also ask for help from the best mortgage brokers in Ottawa for this step.

It’s great to know that there are specific provincial and federal programs that support first-time home buyers. Some allow buyers to dip into retirement savings plans while others give eligible buyers considerable tax credits.

In Ontario, first-time home buyers are incentivized by certain tax refunds. There’s also something called the First Time Home Buyer Tax Credit (HBTC) where first-time homeowners are eligible for a $5,000 personal tax credit.

As well, you can look into applying for the Ontario First Time Home Buyers Land Transfer Tax Credit. If you’re eligible for this program, you can enjoy a tax credit of up to $2,000!

4. Consult a Real Estate Agent

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If you’re wondering if you can buy a house by yourself without the help of a professional, our answer would be “Yes…but.”

There really is no law that prevents you from doing so especially if you have sufficient real estate experience and the background for it. But we still believe that getting the services of an Ottawan real estate agent is the better decision, especially for a first-time home buyer.

For starters, you won’t have to worry about running out of time or becoming exhausted from all the tasks required to purchase a home. For another, a real estate agent knows the market inside and out and has experience in dealing with everyone from appraisers to inspectors.

They also know the kind of neighbourhoods, locations, amenities, and other factors that could contribute to your perfect first home. You can request guided tours and open houses until you can narrow down your selections to those that match your preferences and lifestyle.

If you aren’t sure where to start shopping for a real estate agent, you can get referrals from family and friends who’ve had positive experiences with buying their first homes. Those who have closed deals consistently are likely the most well-connected and reliable ones.

5. Give Your Best Offer

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Once you’ve zeroed in on the house you can imagine you and your loved ones living in, it’s time to make an offer to the seller. Your trusted real estate agent can do this on your behalf.

This is an important step because a home can sell pretty quickly if it’s in a good location and the market is competitive. If you have your heart set on a house, you’re going to have to offer the seller’s asking price or an amount that’s a bit higher than it.

But if the real estate market is slow, you can negotiate for a slightly lowered rate, too. This can also be applicable to houses that have been on sale for some time or for previous owners who need to move somewhere else ASAP.

When the seller accepts your offer, you’ll need to agree on several terms, including how much to pay as a security deposit to signal your commitment to buy. You can also discuss when the rest of the payment is due, as well as what coverage the price includes (furniture, appliances, etc.).

6. Close On Your New Home

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Once you have signed the contract in agreement to all the terms between you and the seller, you’ll need to have the house’s title transferred to you. When you have your hands on the title to the property, you’re finally ready to close on your new home.

The property title will serve as proof that you’re the only person who has ownership rights to your house. Should you need to settle in court for something regarding your property, the title will serve as evidence that no other person, entity, or organization has legal or financial claims over it.

Before obtaining it, it’s good to have a lawyer do some research on your property to check if there are no outstanding claims on it and if all taxes have been paid. Don’t neglect this step if you don’t want to be saddled with unpaid dues in the future.

The property information is easily obtainable because the records are public, but you can consult with some property management firms to do the research on your behalf. 

7. Have Your New Home Professionally Inspected

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You could be moving into a newly constructed home, but it’s still an important step to get it thoroughly inspected by professionals. You can also do this once your offer has been accepted by the seller.

There are several home inspection services in Ottawa that can check your new home for signs of asbestos, mould, radon, leaky plumbing, faulty electricity, foundational damage, and others. Or, you can always ask your real estate agent for a recommendation from inspectors they’ve worked with in the past.

If the inspectors discover structural damage, you might have to contact the services of structural engineers or consult with some renovation contractors in Ottawa. They can recommend rehabilitation solutions to your home’s structural problems if any.

The durability and strength of your new home’s foundation are vital for your health, safety, and sanity because a faulty foundation can bring with it a host of safety and maintenance problems in the future. 

8.  Get Your Home Insured

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Because it’s one of the biggest investments you’ll make in your lifetime, it’s only wise to get your home insured. As a new homeowner, you’ll be up against unforeseen events like extreme weather conditions, fire, flooding, and even burglary.

By taking on home insurance, you’ll also be giving your new home mortgage protection in case it sustains severe damage. Your home will be reviewed for its location (if it’s in an earthquake or flooding-prone area), and how much it will cost to rebuild should it come to that.  

The rates you’ll be paying to get your home insured will also depend on past insurance policies you’ve gotten if you’ve had prior claims and if you intend for your new house to be your primary place of residence. Results of professional inspection can also affect your home insurance rates.

But you’ll also be gifting yourself with the most sought-after benefit of having an insured home, and that is peace of mind. Knowing that you and your family (and home) are protected from loss or damage is a priceless thing.

9. Look for a Reputable Mover

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After all the paperwork is done, it’s time to get ready to settle into your new home. This means bringing out all those crates and moving boxes to store your stuff in for the big move.

It’s practical to stock up on containers, packing tape, and other tools to help you move even before all the paperwork is signed. This way, you won’t lose any time trying to declutter and decide which stuff to bring with you on the move.

For this step, you’ll definitely need the help of professional movers in Ottawa, especially if it’s going to be a long-haul trip. Luckily, there are reliable moving companies that can accommodate both local moves and long-distance ones.

If you don’t have time to pack, some moving companies also offer professional packing services along with labour and trucks for a complete service. The rates will depend on the number of hours, how many packers, boxes, and vehicles are required, and the distance between the locations. 

10. Move In (With Our Congratulations)!

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Hurray for you! By the time you’ve ticked off the previous checklist item, you’re probably raring to arrange that welcome mat by your brand-new front door.

Now that you’re ready to dive into becoming a true homeowner, you’ll need resources on repairs, maintenance, and other ways to make your home healthy and happy. Luckily, we have handy tips and tricks on home maintenance for the first-time homeowner, too.

There are some maintenance activities you can do for just ten to 15 minutes a day to ensure your house remains spick and span. However, it’s also good to keep some professionals on speed dial in case emergencies concerning plumbing, electricity, leaks, and appliances happen.

There are also simple ways to make your home healthier without too much money and effort involved. These small changes start with identifying potential health and safety hazards at home and making sure it’s free from pests, toxins, and fire or flood risks.

And once you’ve identified those, you can begin the pleasurable and leisurely activity of decorating your new home. You can start window-shopping at the best furniture stores in Ottawa to get an idea of how to arrange certain rooms.

Or if you already have furniture and just want to spruce it up, consider getting professional upholstery services, instead. It’s a sentimental and fun way to introduce pieces of your old life to your new home.