Should You Buy Now or Wait? A 2025 Guide for First-Time Homebuyers
Should You Buy Now or Wait? A 2025 Guide for First-Time Homebuyers
Date Posted: June 11, 2025
For many first-time homebuyers, the question on everyone's mind right now is:
"Should I buy a home now, or keep waiting?"
It's a fair question — and the answer isn’t one-size-fits-all. The good news is that the mortgage landscape is finally shifting in favour of buyers again, and understanding the details can help you make a smart, informed decision.
Let’s break it down.
🔻 Interest Rates Are Finally Coming Down
After two years of elevated interest rates, the Bank of Canada finally cut its overnight rate in June 2025, bringing some much-needed relief to borrowers. And this is just the beginning — economists and financial institutions are predicting more rate cuts over the second half of 2025.
That means:
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Lower monthly payments for new buyers
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Improved affordability
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More competitive mortgage products entering the market
💡 Tip: Even a 0.25% rate reduction could save you thousands over the course of your mortgage. That’s why timing matters — and why your broker can monitor the market and help you lock in the best rate when the time is right.
💼 The Stress Test Still Applies – But It’s Easing
The mortgage stress test is still in place, requiring buyers to qualify at a higher rate than the one they’ll actually pay. But as interest rates come down, so does the stress test threshold — meaning you may qualify for more home today than you did six months ago.
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If you were previously just under the approval limit, now might be your moment.
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A mortgage broker can run updated pre-approvals based on today’s criteria, not last year’s.
🏠 Home Prices Are Stabilizing – But Competition May Heat Up
After years of rapid price increases and then a cooling period, home prices in Ottawa and many parts of Canada have started to stabilize in 2025. In some neighbourhoods, prices have even dipped slightly — creating opportunities for savvy buyers.
However:
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As rates fall, more buyers will re-enter the market, increasing competition.
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We could see bidding wars again by late 2025, especially for entry-level homes.
This makes the next few months a potential sweet spot: lower rates and less competition. A Mortgage Brokers Ottawa broker can help you get pre-approved now so you’re ready when the right property comes along.
🧾 Renting Isn’t Getting Cheaper
Waiting on the sidelines might feel safer, but it also means continuing to pay rent — and rent prices in Ottawa remain high in 2025.
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Every month you wait is money not going toward building your own equity.
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Even if you can’t afford your dream home yet, getting into the market now can help you build wealth and upgrade down the road.
🤝 How a Mortgage Broker Can Help
If you’re unsure whether now is the right time to buy, that’s where we come in.
A licensed mortgage broker at Mortgage Brokers Ottawa will:
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Shop the market across dozens of lenders to find the best deal for your situation
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Explain fixed vs. variable options and help you understand where rates are headed
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Keep you updated as mortgage rules or opportunities change
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Handle the paperwork, lender negotiations, and rate locks — so you can focus on house hunting
We work for you, not the bank. And our service is typically free to you as a buyer.
📌 Final Thought
There’s no “perfect” time to buy — but there is a smart time. And for many first-time buyers, that time might be now. With interest rates heading lower and home prices holding steady, 2025 could offer a rare window to get into the market before competition heats up again.
📲 Let’s talk. Connect with a Mortgage Brokers Ottawa expert today and let us help you build your personalized path to homeownership.