Because of the new mortgage rules, Emily Reid has put off buying her new home until she can save more money. (CBC)

Ottawa's formerly hot real-estate market is cooling down, as the effects of new federal mortgage rules are beginning to be felt, local realtors say.

Last month, the federal government eliminated the 30-year mortgage, setting it at a maximum of 25 years.

So Ottawa resident Emily Reid, 27, is looking for a home for the future, not for today.

"With the new rules, the month-to-month payment has increased. So it's kind of delayed the process," she said.

Reid graduated with a master’s degree in business administration, landed a government job, and then saved up for two years. But the new rules mean she will have to save a little longer, either to have a bigger down payment, or to afford higher monthly payments.

The president of Ottawa's Real Estate Board, Ansel Clarke, said the city has enjoyed a hot and active housing market for 10 years. Now it’s returning to the 1990s.

"I think it's averaging out and cooling down, and I think it's going to be a more consistent market where buyers and sellers both have time to make a decision," Clarke said. There are more houses on the market, and they're taking longer to sell. It took about 40 days last month. That's a week longer than at the same time last year.

With the lower-priced homes sitting on the market longer, the more affluent buyers are pulling back too.

"It's been more evident with the higher priced homes. We've seen them really slow down. Our inventory for the homes over $500,000 are dramatically higher than we've seen in the last five years," said Leam Hamilton, sales representative for Keller Williams Realty.

The owner of a west-end townhouse, Tatiana Proshina, took it off the market after three months without a buyer, and then she put it up for rent.

“Within half an hour, amazing, I had telephone calls, and people asking for an appointment for viewing. I practically rented it out immediately,” she said.

That's Emily Reid's new plan. She's renting with a roommate, with the hope that this time next year she'll be able to afford to buy her home.