HomebuyingOttawa revamps mortgage stress test to make it easier to pass
Effective April 6, the federal government will implement a change to its qualifying mortgage stress test rate.
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Compare mortgage rates in Ottawa.
As an Ottawa homeowner or buyer, you know that today’s low rates won’t last forever. That’s why you’ve come to LowestRates.ca. We offer a free, no-obligation service that lets you quickly search for the most competitive rates in the city. With a little help from us, you’ll never miss out on a rate that could save you thousands of dollars per year.
Variable or fixed: which is lower?
We tracked our 5-year variable rates and our 5-year fixed rates in Ottawa over the past two years to get you an answer. Here it is: our variable rates have consistently been at least 0.5% lower than our fixed rates. Although it may not seem like much, on a $400,000 mortgage, variable borrowers in Ottawa would see savings of over $1,000 per year.
On average, variable rates are almost half a percentage point lower than fixed rates.On a $400,000 mortgage that’s an average savings of:
$92 Per Month
$1,099 Per Year
$27,518 In a Lifetime
5-year fixed mortgage rate in Ottawa vs 5-year variable rate from LowestRates.ca
| Month | Average LR.ca 5-year fixed rate | Average LR.ca 5-year variable rate |
|---|---|---|
| 11/15 | 2.41% | 1.91% |
| 12/15 | 2.64% | 2.07% |
| 01/16 | 2.43% | 2.05% |
| 02/16 | 2.38% | 2.09% |
| 03/16 | 2.39% | 2.07% |
| 04/16 | 2.32% | 2.08% |
| 05/16 | 2.31% | 2.03% |
| 06/16 | 2.24% | 1.97% |
| 07/16 | 2.19% | 1.93% |
| 08/16 | 2.19% | 1.91% |
| 09/16 | 2.16% | 1.95% |
| 10/16 | 2.14% | 1.94% |
Focus On
Ottawa housing.
It's a good time to buy a home in the nation's capital. Sales have been slow over the past year and prices have remained relatively flat –– a sharp contrast to a few other notable Canadian cities (here’s looking at you, Vancouver and Toronto).
Compared to the wild price swings seen in some other, more highly-publicized Canadian housing markets, Ottawa home prices have been relatively stable. Rate cuts from the Bank of Canada in 2015 look to have given Ottawa home prices a boost over the year.
Single-Detached Home and Condo Prices by City
| City | Single-detached | Condo |
|---|---|---|
| Canada | $523,900 | $358,900 |
| Vancouver | $1,380,300 | $493,100 |
| Calgary | $513,900 | $307,000 |
| Edmonton | $418,500 | $247,400 |
| Toronto | $768,500 | $371,800 |
| Ottawa | $402,000 | $300,600 |
| Montreal | $355,800 | $286,200 |
Compared to the wild price swings seen in some other, more highly-publicized Canadian housing markets, Ottawa home prices have been relatively stable. Rate cuts from the Bank of Canada in 2015 look to have given Ottawa home prices a boost over the year.
Average Home Prices in Ottawa.
| Date | Home Prices |
|---|---|
| 01/14 | $355,541 |
| 03/14 | $354,984 |
| 05/14 | $368,235 |
| 07/14 | $361,236 |
| 09/14 | $363,585 |
| 11/14 | $359,102 |
| 01/15 | $357,892 |
| 03/15 | $360,326 |
| 05/15 | $369,664 |
| 07/15 | $370,413 |
| 09/15 | $370,808 |
| 11/15 | $365,819 |
| 01/16 | $367,062 |
| 03/16 | $369,645 |
| 05/16 | $365,612 |
| 07/16 | $370,000 |
| 09/16 | $363,000 |
Prices for new detached homes in Ottawa have edged up only slightly over the last few years, with the average new build commanding $525,000. New home prices could move slightly higher in 2017 as fewer developments come on stream and buyers rush to get into the market before rates go up.
New Home Prices in Ottawa, Single-Detached
| Year | Price |
|---|---|
| 2011 | $478,292 |
| 2012 | $482,586 |
| 2013 | $490,733 |
| 2014 | $514,381 |
| 2015 | $517,000 |
| 2016 | $525,000 |
Your Ottawa mortgage questions, answered.
Variable or fixed: which is more popular?
We have a nearly even split –– our latest data reveals that 51% of Ottawa borrowers are taking variable rates.
5-Year Fixed Rates vs. 5-Year Variable Rates in Ottawa: Who Takes What?✝
- of Ottawa borrowers apply for 5-year variable mortgages
- 51%
- of Ottawa borrowers apply for 5-year fixed mortgages
- 49%
✝Based on borrowers in Ottawa who applied for a mortgage at LowestRates.ca since 2014.
About Ottawa
Canada's capital, Ottawa, is the country's fourth largest city by population and also one of its prettiest. The imposing gothic buildings of Parliament Hill can be seen for miles around and stand opposite the town’s bustling commercial core. Residents and visitors alike can enjoy the shops and restaurants of the picturesque ByWard Market or take a walk along the gently flowing Rideau Canal. They can also take advantage of first-class cultural institutions like the National Gallery of Canada.
It's for all these reasons and more that MoneySense Magazine named Ottawa Canada's fourth best place to live in 2014. Whether you are looking to enjoy an evening at the RBC Royal Bank Bluesfest or to spend precious family time sliding away on state-of-the-art water rides at Calypso Waterpark, Ottawa is a great place to live.
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