As you are probably aware, one of the single greatest determining factors in whether you qualify for a mortgage — and the interest rate you receive — is your credit history.

I have met with clients who had not checked their credit report through Equifax Canada or TransUnion. Unfortunately, our school system does not teach anything about personal finance in their regular curriculum, so when it comes to understanding credit, there is a lack of knowledge.

Note: You should check your credit report every 6 months to a year, make sure that there aren’t any mistakes that could negatively impact you!

Many buyers don’t fully understand how important their credit score is… not just before approval, but all the way through closing day.

In fact, one of the most unsettling truths about mortgage financing is this:

Your credit can still impact your deal even after you’ve been approved and removed financing conditions.

Let’s break down why — and how to protect your home purchase.

Your Mortgage Approval Is Based on a Financial Snapshot

When you’re first pre-approved, your lender evaluates:

• Your credit score

• Your payment history

• Your employment

• Your income

• Your debt-to-income ratio

Once your offer is accepted and you satisfy all lender conditions, you receive final approval of your financing condition. At that point, your offer becomes firm and you are legally obligated to close.

The mortgage instructions are then sent to your real estate lawyer, who prepares to:

• Finalize the paperwork

• Collect closing costs

• Transfer funds (On the closing date)

• Complete the legal transfer of ownership (On the closing date)

But before funds are released, one more critical step can occur…

Yes — Your Credit Can Be Checked Again

Many lenders perform a final verification prior to releasing mortgage funds. This can include:

• Re-checking your credit report

• Re-verifying employment

• Confirming no new debts have been added

• Ensuring no significant financial changes occurred

This final review confirms that your financial profile is the same as it was when you were approved.

If it’s not? Problems can arise.

What Can Jeopardize Your Mortgage Before Closing?

Here are the most common mistakes buyers make between final approval and closing day.

🚫 1. Opening New Credit Accounts

Applying for a new credit card — even for rewards points or furniture discounts — can:

• Lower your credit score

• Trigger a hard inquiry

• Increase your available debt

Even small changes can affect your debt-to-income ratio or credit profile.

🚫 2. Financing a Car or Large Purchase

This is one of the most common (and costly) mistakes.

Buying a car, financing furniture, or taking on any new loan creates:

• A new monthly payment

• A higher debt-to-income ratio

• Potential requalification issues

You may think, “I’m already approved — I’m fine.”

But if your debt increases before closing, your lender could reassess your file before advancing funds.

🚫 3. Missing Payments

Even one missed payment on:

• A credit card

• A car loan

• A line of credit

• Rent or existing mortgage

can lower your score and show up during final verification.

At this stage, your credit is just as important as your down payment.

🚫 4. Changing Jobs

Even after final approval, employment stability matters.

If you:

• Switch employers

• Move from salaried to commission income

• Enter a probationary period

• Change industries

Your lender may need to reassess your income before releasing funds.

Of course, if you receive a promotion within the same company and there is no probation, this would not have an impact, especially if it comes with an increase in salary.

If a job change is unavoidable, speak to your lender immediately.

A Real-World Example

Let’s say you:

✔ Made an offer
✔ Were approved for financing
✔ Removed all conditions
✔ Met all lender requirements

Then you go out and buy new furniture for your home on a credit card.

That increase in debt could alter your debt-to-income ratio.

If your credit profile changes enough, you may no longer qualify under the lender’s guidelines.

In extreme cases, this can prevent the mortgage funds from being released — leaving you legally obligated to complete a purchase without financing in place.

That can lead to serious financial consequences and even legal disputes.

The Simple Rule: Financial Freeze Until Closing

Between final mortgage approval and closing day:

✔ No new credit
✔ No major purchases
✔ No missed payments
✔ No job changes
✔ No large unexplained deposits

Think of this period as a short-term financial “freeze.”

Your mortgage was approved based on a specific financial picture. Keep that picture unchanged until the deal is fully closed and funded.

Final Thoughts: Protect Your Purchase

Your credit history is one of the most powerful tools in home financing — and one of the most fragile during a pending purchase.

Even after final approval, your lender must feel confident that nothing has changed before releasing funds to your lawyer.

If you plan on spending money that isn’t cash and isn’t already allocated for your down payment or closing costs, talk to your broker first.

A quick conversation can prevent a devastating mistake!

Ottawa’s residential real estate market has stepped into 2026 with a noticeable shift toward balance, creating opportunities for both buyers and sellers. After several years of fast-paced and highly competitive conditions, the market is now showing signs of stability, increased housing choice, and more realistic pricing expectations.

Here’s a closer look at what’s happening in Ottawa’s housing market and what it means if you’re thinking about buying or selling this year.

A More Balanced Ottawa Real Estate Market in 2026

Ottawa’s housing market is currently operating on more stable footing compared to recent years. Inventory levels have increased, giving buyers more options and reducing the intense competition that previously defined the market. At the same time, sellers are adjusting their pricing strategies to reflect current market conditions, which now reward accuracy and patience.

Benchmark home prices have declined slightly year-over-year across most housing categories. The softening is most noticeable in townhomes and condominium apartments, while detached homes have maintained stronger price stability. Overall, the January market data suggests Ottawa is moving toward a healthier, more balanced real estate environment rather than experiencing widespread downward pressure.

Tami Eades, President of the Ottawa Real Estate Board, noted that the current market reflects a natural adjustment period. With increased selection for buyers and more realistic expectations from sellers, pricing is stabilizing without dramatic swings — a key indicator of long-term market strength.

Ottawa Housing Inventory Is Rising — But Not Oversupplied

One of the biggest factors influencing Ottawa’s real estate market is the increase in housing supply. In January 2026, new residential listings reached 1,522 properties, representing an 8.8% increase compared to the same time last year. Active listings rose to 2,673 homes, marking a significant 22.7% increase year-over-year.

While inventory remains higher than recent seasonal trends, the pace of growth has slowed. This moderation is helping prevent an oversupply of homes and is contributing to a more stable housing environment.

Ottawa currently sits at approximately 4.4 months of housing inventory, which is much closer to historical pre-pandemic averages. This level typically indicates a balanced market where neither buyers nor sellers hold a significant advantage.

What This Means for Ottawa Home Buyers

For buyers, the current Ottawa housing market offers increased flexibility and improved negotiating power. Higher inventory levels mean more property options, more time to make informed decisions, and greater opportunities to negotiate price, conditions, or closing timelines.

However, well-priced and desirable homes continue to attract strong interest. Buyers who are financially prepared and working with knowledgeable real estate professionals still have the best chance of securing the right property.

What This Means for Ottawa Home Sellers

Sellers can still achieve strong results in Ottawa’s current market, but pricing strategy has become more important than ever. Homes that are accurately priced for today’s conditions are continuing to generate steady buyer interest and successful sales.

Overpricing, on the other hand, can lead to longer days on market and reduced negotiating leverage. Sellers who focus on preparation, presentation, and competitive pricing are seeing the most success in 2026.

Detached Homes Showing Stronger Stability

While many housing types are experiencing moderate price adjustments, detached homes in Ottawa are demonstrating greater resilience. These properties continue to benefit from strong buyer demand, particularly among families seeking space, privacy, and long-term value.

Townhouses and condominiums remain attractive entry points for buyers, but these segments are experiencing slightly softer pricing as inventory options grow.

Ottawa’s Real Estate Outlook for 2026

The Ottawa housing market is not showing signs of distress — rather, it is transitioning into a more sustainable and predictable environment. Increased supply is improving accessibility for buyers while encouraging realistic expectations for sellers.

Balanced conditions like these typically support healthier long-term market growth, improved affordability, and reduced volatility. For both buyers and sellers, 2026 is shaping up to be a year that rewards preparation, professional guidance, and informed decision-making.

If you’re considering buying or selling a home in Ottawa and want to understand how these market trends affect your specific situation, connect with me — Click HERe to contact me.