Ottawa buyers routinely underestimate closing costs, and getting caught short on closing day is a stressful and sometimes deal-breaking situation. Beyond the down payment and mortgage, expect to set aside an additional 1.5% to 4% of the purchase price for closing costs, that's $10,275 to $27,400 on an Ottawa benchmark purchase of $685,000.
Ontario Land Transfer Tax
This is the biggest closing cost for most Ottawa buyers. Ontario charges a sliding scale: 0.5% on the first $55,000, 1.0% on $55,001–$250,000, 1.5% on $250,001–$400,000, 2.0% on $400,001–$2,000,000. On a $685,000 purchase, the Ontario LTT amounts to approximately $10,950. First-time buyers get a rebate of up to $4,000, bringing that figure down to about $6,950.
Note: Ottawa does not have a municipal land transfer tax, unlike Toronto. This is a meaningful advantage for buyers choosing Ottawa over the GTA.
Legal Fees and Disbursements
Ontario real estate lawyers typically charge $1,200 to $2,000 for a purchase transaction. Disbursements, title searches, registration fees, couriers, and miscellaneous costs, add another $500 to $1,000. Budget $1,800 to $3,000 total for legal.
Title Insurance
Title insurance protects against risks like fraud, survey errors, and undisclosed encumbrances. A one-time premium for a $685,000 Ottawa property runs approximately $300 to $450 through providers like FCT or Stewart Title. Most lawyers strongly recommend it.
Home Inspection
A standard home inspection in Ottawa runs $450 to $650 for a typical single-family home. Larger or older homes, or those requiring radon or sewer scope testing, can push this to $800 or more. This cost is paid before closing, not at closing, but it's part of your purchase budget.
Property Tax Adjustment
If the seller has prepaid property taxes, you'll reimburse them for the portion of the year you're occupying the home. On Ottawa's average property tax of $5,200/year, a mid-year close means roughly $2,600 owed to the seller. Your lawyer calculates this automatically.
Mortgage Insurance Premium (if applicable)
As noted, CMHC premiums are added to the mortgage principal, but Ontario also charges PST (8%) on the CMHC premium, which is due at closing and not rolled into the mortgage. On a $19,800 CMHC premium, that's $1,584 in PST owed on closing day.
Moving Costs and Utilities Setup
Not a legal closing cost, but real money: local moving companies in Ottawa charge $1,200 to $2,500 for an average household move. Factor in utility deposits, internet setup, and immediate maintenance items.
Summary Budget
For a $685,000 Ottawa purchase with less than 20% down, first-time buyers should budget approximately $12,000 to $18,000 in closing costs beyond the down payment. Non-first-time buyers should budget closer to $16,000 to $22,000. Ask your lawyer for a detailed statement of adjustments two to three weeks before closing.
