Ottawa's housing market has remained one of the more competitive in Ontario, and if you're planning to buy a home this year, understanding the true cost of entry is essential before you start browsing listings.
The Down Payment: Your Biggest Upfront Cost
In Canada, the minimum down payment depends on the purchase price of the home:
- Homes under $500,000: Minimum 5% down
- Homes between $500,000 and $999,999: 5% on the first $500,000, then 10% on the remainder
- Homes $1,000,000 and above: Minimum 20% down, and mortgage insurance is not available at this price point
Given that the average detached home in Ottawa has climbed well above $700,000 in many neighbourhoods, most buyers are looking at a minimum down payment in the range of $45,000 to $60,000 just to clear the threshold. If you're targeting a condo or townhouse in the $450,000–$550,000 range, you may be able to get in with $25,000–$35,000 down, but expect to pay mortgage default insurance (more on that below).
CMHC Mortgage Default Insurance
If your down payment is less than 20%, you're required to purchase mortgage default insurance through CMHC (or a private insurer). The premium is added to your mortgage and ranges from 2.8% to 4% of the loan amount depending on your down payment size. On a $600,000 mortgage with 5% down, that's roughly $23,000 folded into your loan, something that meaningfully increases your monthly payment over time.
Closing Costs: The Budget Line Most Buyers Underestimate
Beyond the down payment, Ottawa buyers should budget an additional 1.5% to 4% of the purchase price for closing costs. These typically include:
- Land Transfer Tax: Ontario charges a provincial land transfer tax on all purchases. First-time buyers get a rebate of up to $4,000, which helps, but on a $700,000 home, you're still looking at several thousand dollars owing.
- Legal Fees: A real estate lawyer in Ottawa typically charges between $1,200 and $2,000 for a standard purchase, including title registration and disbursements.
- Home Inspection: Expect to pay $400–$600 for a qualified inspector, and it's worth every dollar.
- Title Insurance: Usually $200–$400, and most lenders require it.
- Adjustments: You may owe the seller a prorated share of prepaid property taxes or condo fees. This varies per deal.
- Moving Costs: Often forgotten until the last minute. Local moves in Ottawa typically run $800–$2,000 depending on volume and distance.
A Realistic Budget Example
For a $650,000 home in Ottawa with 10% down:
- Down payment: ~$65,000
- CMHC premium (added to mortgage): ~$16,000
- Closing costs (2.5%): ~$16,000
- Total cash needed at closing: roughly $81,000
That doesn't include your emergency fund, which lenders and financial advisors typically recommend keeping intact even after closing.
First-Time Buyer Programs Worth Knowing
Federal and provincial programs can ease the burden. The First Home Savings Account (FHSA) lets eligible buyers contribute up to $8,000 per year (lifetime max $40,000) in tax-deductible savings. The Home Buyers' Plan allows RRSP withdrawals of up to $35,000 per person ($70,000 per couple) for a first purchase, repayable over 15 years.
Ottawa buyers navigating the market in 2026 should speak with a mortgage broker early, ideally before falling in love with a listing, to understand exactly what they can qualify for and what they'll need in hand on closing day.
Source: Ottawa real estate market data 2026
