The holiday season is busy in Ottawa, but it’s also the perfect time to get your finances in order if you’re planning to buy a home next year. Whether you’re a first-time buyer or upgrading, these five year-end financial moves can help you start 2026 on the right foot.
1. Check Your Credit Score
Your credit score affects the mortgage rate you’ll qualify for. Take a few minutes to review your report from Equifax or TransUnion. If you spot any errors, correct them before applying for a mortgage—every point counts.
The holiday season often comes with extra spending, so make sure you’re keeping up with your payments and maintaining good credit. This can make a big difference when Ottawa lenders review your mortgage application.
2. Maximize Your Savings for a Home
Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs) are great tools to grow your home savings. Contributions to your RRSP before December 31 can also give you a tax refund, which you can put toward your down payment. Think of it as a Christmas present to your future!
It’s also smart to set up a dedicated savings account just for your down payment or closing costs. Keeping your savings separate makes it easier to stay on track and avoid dipping into it during the holidays.
If you’re a first-time homebuyer, consider opening a First Home Savings Account (FHSA) before December 31. Canadians who qualify can contribute up to $8,000 per year, and contributions are tax-deductible. Opening an FHSA now gives you an extra $8,000 of contribution room for 2026—a free holiday gift to yourself and a big boost toward your down payment.
3. Pay Down High-Interest Debt
High-interest debt, like credit cards or personal loans, can hurt your mortgage application. Paying it down improves your debt-to-income ratio and helps you qualify for better mortgage rates. If your holiday spending went a bit over budget this year, make sure you address it before applying for a mortgage in Ottawa.
4. Plan for Upcoming Expenses
Buying a home comes with upfront costs such as legal fees, home inspections, and moving expenses. Planning for these now ensures you won’t be caught off guard in the new year. Being prepared will make your home-buying process in Ottawa smoother and less stressful.
Taking a few simple steps before December 31 can make a big difference in your ability to buy a home. By checking your credit, boosting your savings (including using an FHSA), managing debt, and planning for costs, you’ll start 2026 ready to achieve your homeownership goals.
Contact me today to review your situation and create a plan tailored to you—so you can make your Ottawa homeownership dreams a reality!
