Solutions for borrowers, brokers and investors

Investing in Ottawa

Why does AMIC invest in Ottawa?

Ottawa is widely regarded as the most stable real estate market in Canada, largely due to an educated population
and diverse economy anchored by federal government employment and a thriving tech sector.
• Ottawa is home to over 900,000 individuals in almost 400,000 households.
• The average sale price of a home in Ottawa in 2013 was $357k.
• The last time the average home price in Ottawa dropped was in 1994, 1995 and 1996 when prices dropped from
$147k to $140k, or approx. 5%.
• Residential housing sales numbered 14,049 units in 2013, a 3% decrease from the 2012 total.
• The average family income in Ottawa (per the last census) was $97k.
• The estimated GDP of the greater Ottawa region is $46B.
• Ottawa boasts the highest concentration of scientists and engineers in Canada.
• It's also the most well-educated city in Canada with 61% of workers having a post-secondary degree.
• Ottawa's unemployment rate (not including Gatineau) is currently 6.4%, as of March 2014.

Primarily, AMIC makes mortgage investments in Ottawa and the surrounding regions of Eastern Ontario. We feel that it's best, as the company grows, to lend where we live because we can see and monitor the properties. And because of AMIC's connection to and relationship with Mortgage Brokers Ottawa, AMIC is assured of a constant flow of quality mortgage applications.

When reviewing AMIC as a potential investment, you may wish to review your current portfolio to ensure that it is not unsuitably overconcentrated in other products with an Ottawa-centric geographic focus.

That being said, AMIC management believes that the underlying economic fundamentals of Ottawa are strong and that the region presents an attractive investment opportunity for any lender providing mortgages to residential borrowers.

Ottawa is widely regarded as the most stable real estate market in Canada, largely due to an educated population and diverse economy anchored by federal government employment and a thriving tech sector.

Recently, MoneySense ranked Ottawa as the best place to live in Canada.

The 2016 census is a great source of information about Ottawa, including that (as of the date of the census):

  • The Ottawa census division (not including Gatineau) is home to over 934,000 individuals in over 395,000 households. More on housing.
  • The city's population increased by over 5% from the date of the 2011 census. More on population.
  • The average household income in Ottawa was $106k (which is higher than the provincial average at $97k). More on Ottawa income.

The job market is consistently strong and growing:

  • The estimated GDP of the greater Ottawa region was over $58B USD per a Brookings Institute study in 2014.
  • Per a Conference Board of Canada report, "The 2.3 per cent forecast growth in Ottawa-Gatineau's gross domestic product (GDP) in 2017 is enough to rank it fourth-highest among the 13 municipalities studied in the report, trailing only Toronto at 2.7 per cent, Vancouver and Edmonton, both at 2.4 per cent. As a whole, Canada's GDP is forecast to grow by two per cent." (CBC)
  • Ottawa boasts the highest concentration of scientists and engineers in Canada. It's also the most well-educated city in Canada with 61% of workers having a post-secondary degree.
  • Ottawa's unemployment rate (not including Gatineau) hovers around 6%.

The new and resale residential housing markets are reliably moderate:

  • The Ottawa Real Estate Board (OREB) maintains and publishes local housing market statistics.
  • Per OREB data, the last time the average home price in Ottawa dropped was in 1994, 1995 and 1996 when prices dropped from $147k to $140k, or approx. 5%.
  • The Canada Mortgage and Housing Corporation (CMHC) also maintains reports on the Ottawa real estate market.

The City of Ottawa's Economic Development office publishes quarterly updates that can also be used to review market conditions in the city.

 


Property Valuation Policy

AMIC requires that all mortgage applications be supported by a full residential appraisal (addressed to AMIC via a letter of transmittal) written by an appraiser who is a member of the Appraisal Institute of Canada.

 

 


Historically Strong Lending Area

Ottawa is widely regarded as the most stable real estate market in Canada, largely due to an educated population and diverse economy anchored by federal government employment and a thriving tech sector. The last time the average home price in Ottawa dropped was 1994, 1995 and 1996 when prices dropped from $147k to $140k, or approx. 5%.

 

 

For more statistics from OREB, click here.

 

Ottawa's Housing Price Index (HPI) is moderate when compared with other Canadian urban centres over the last five years as per this CREA chart: