Should I Wait for Interest Rates to Drop Before Buying a Home in Ottawa?

One of the most common questions I get is, “Should I wait for interest rates to drop before buying a home?”

It’s a fair question, especially after the ups and downs we’ve seen in the last few years. But in most cases, waiting doesn’t pay off.

Why Waiting Usually Costs More

Many buyers assume that lower rates automatically mean better affordability. In reality, when rates dip, buyer demand in Ottawa jumps. That extra competition often pushes prices up faster than rates come down.

For example, if you’re looking at a $700,000 home and prices rise just 5 percent while you wait for a rate cut, that’s an extra $35,000 before you even start negotiating.

You can see more on this trend in this CTV News article on Ottawa housing forecasts, which highlights improving market confidence as interest rates begin to ease.

The Smart Play: Buy the Home, Not the Rate

Rates change, but the price you pay for your home is permanent.

Many of my clients choose to buy now at a negotiated price and refinance later when rates improve. That way, they’re already building equity while others are still waiting for the “perfect” time.

If you want to better understand what refinancing or renewing a mortgage involves, check out the Financial Consumer Agency of Canada’s guide on mortgage renewals. It’s a great resource for learning what to expect when your term ends and how to compare offers.

Why Ottawa’s Market Is Different

Ottawa’s real estate market remains one of the most stable in Canada, supported by strong sectors like government, tech, and healthcare. Unlike speculative markets, Ottawa’s foundation is built on long-term growth and reliability.

You can explore the latest market data and trends on the Canadian Real Estate Association’s housing statistics page, which shows how Ottawa has consistently held steady through changing rate environments.

CK’s Take

If you’re financially ready, now is almost always better than “someday.” You can always change your rate later, but you can’t go back to the price you passed on.

If you’re ready to explore creative financing options or plan your next move, reach out to me directly through my site. I’ll help you map out the best strategy for your goals.