Should You Buy a Home Now or Wait for Rates to Drop? What Ottawa Buyers Need to Know
If you’ve been thinking about buying a home in Ottawa, you’ve probably asked yourself some version of this question: Should I wait for rates to drop, or just buy now?
It’s a fair question — and one we hear all the time. With headlines bouncing between “rates are going down soon” and “the market’s cooling off,” it can feel like you’re constantly one wrong move away from making a huge financial mistake.
But here’s the truth: there’s no one-size-fits-all answer. What matters most is your own situation, goals, and what you can comfortably afford, not just what the market is doing.
That said, here’s what you should know before deciding whether to wait or jump in.
How Interest Rates Actually Affect What You Can Afford
Let’s break it down simply.
Interest rates don’t just change your mortgage rate. They change your monthly payment, your total budget, and how much house you can afford.
Here’s an example:
Let’s say you’re buying a $600,000 home with 10% down.
At a 6% interest rate, your monthly mortgage payment (principal + interest) might be around $3,200.
If rates drop to 5%, that same home could cost you closer to $2,900/month.
That’s a difference of $300/month or over $100,000 in mortgage eligibility if you qualify based on your income.
Sounds like a good reason to wait, right?
But there’s a catch.
What Happens If You Wait Too Long
Here’s what buyers often forget: When rates drop, competition usually rises.
If the Bank of Canada lowers rates and buyers flood back into the market, home prices often start to rise again. That $600,000 house might now sell for $630,000 or spark a bidding war. You’re now competing against 10 people instead of 2.
So even if your interest rate goes down, your purchase price may go up, and your monthly payment might not change as much as you’d hoped.
Plus, while you wait, you’re still renting or not building equity. For some buyers, waiting ends up costing more in the long run.
When It Does Make Sense to Wait
To be clear, we’re not saying everyone should buy now.
If your job situation is uncertain, your credit needs work, or you just don’t have the savings built up yet, waiting can absolutely be the right move.
But don’t just wait around passively. Use this time to get prepared. Here’s how:
Build your savings (especially your closing cost buffer)
Pay down high-interest debt
Get pre-approved to see what your budget would be today
Explore different neighbourhoods and property types
Connect with a real estate agent who will help you strategically, not push you into something just because
What We’re Seeing in Ottawa Right Now
As of summer 2025, Ottawa’s real estate market has been steady. Detached home prices have bounced back from post-peak lows, and we’re seeing solid activity in townhomes and entry-level freeholds. Condos have slowed a bit, which means buyers may have more negotiating room there.
The market isn’t as competitive as it was in 2021, but that window could close quickly once rates dip.
Buyers who are prepared now with pre-approvals, down payments, and a clear game plan are in a strong position to get a good deal before competition picks up again.
What’s Right for You Might Not Be Right for Someone Else
Here’s the bottom line:
Trying to time the market perfectly is like trying to guess the weather two months from now. You can make an educated guess, but there will always be uncertainty.
Instead, ask yourself:
Can I afford to buy now without financial stress?
Am I planning to stay in this home for at least 3–5 years?
Do I have the savings and stability to handle the unexpected?
Would homeownership give me more control or peace of mind than renting?
If the answer to most of those is yes, then it may be worth moving forward, with the right support and strategy in place.
Need a Second Opinion? That’s What We’re Here For.
At New Purveyors, we help buyers weigh the pros and cons of buying now versus waiting — and we’ll never push you into a decision that doesn’t feel right. We’re real people who actually live in Ottawa, and we care about making sure our clients feel confident and informed.
Whether you’re just getting your ducks in a row or ready to start booking showings, we’re here when you need us.
Reach out anytime. No pressure. Just honest advice.
