Buying / First-time buyers
First-Time Home Buyer’s Guide to Ottawa
Buying your first home in Ottawa takes six steps: get pre-approved, set a full budget, choose a neighbourhood, make an offer, complete your conditions and close with a lawyer. Plan for more than the price, because Ontario land transfer tax, legal fees and moving costs all apply. Ottawa has no extra municipal land transfer tax, and first-time buyers may qualify for a provincial rebate.
By Poonam Babbar, REALTOR®, eXp Realty of Canada, Inc., Brokerage
Published Updated 2 min read
Key takeaways
- Get pre-approved before you tour homes, so you know your range and can act quickly.
- Budget for the full cost of buying: down payment, land transfer tax, legal fees, title insurance, inspection and moving.
- Ottawa buyers pay Ontario’s land transfer tax but no separate municipal tax, and first-time buyers may qualify for a rebate.
- Use conditions such as financing and a home inspection to protect yourself, and ask your lawyer to review the agreement.
- Rules and limits change, so confirm current figures with your lender, lawyer or accountant.
This guide takes the six steps in the order you will meet them.
1. Get pre-approved
Before you tour homes, speak with a mortgage broker or your bank. A pre-approval estimates how much you can borrow and often holds a rate for a set period. It also shows sellers that you are serious.
Lenders test whether you could still afford your payments at a higher rate than the one you will actually pay. The amount you are approved for can therefore be lower than you expect. A pre-approval is not a final commitment: the lender confirms the details once you have an accepted offer.
2. Budget for the full cost
In Ottawa, the full cost of buying includes:
- Down payment. The federal minimum is 5% of the first $500,000 and 10% of the portion above that, up to $1.5 million. Homes at $1.5 million or more need 20% down. Confirm current rules with your lender.
- Mortgage default insurance. If your down payment is under 20%, an insurance premium is usually added to your mortgage.
- Land transfer tax. Ontario charges this on closing. Ottawa has no additional municipal land transfer tax, and first-time buyers may receive a refund of the provincial tax, currently up to $4,000.
- Legal fees and title insurance. Your lawyer handles the transfer and arranges title insurance.
- Home inspection. A qualified inspector reviews the condition of the home and gives you a written report.
- Adjustments and moving. Your lawyer adjusts for items the seller has prepaid, such as property taxes, and you will have moving and set-up costs.
- Ongoing costs. Property taxes, insurance, utilities, maintenance and, for condominiums, monthly fees.
Two federal programs may help with the down payment: the First Home Savings Account and the RRSP Home Buyers’ Plan. Limits and conditions change, so ask your bank or an accountant for the current details.
3. Choose a neighbourhood
Commute, schools and lifestyle matter as much as the house. Start with the Ottawa neighbourhood guides to compare communities such as Barrhaven, Kanata, Orleans and The Glebe. For a method you can use on any area, read how to choose the right Ottawa neighbourhood.
4. Tour homes and make an offer
When you find the right home, Poonam helps you decide on a price using recent comparable sales. In Ontario, an offer is a written agreement of purchase and sale. It sets the price, the deposit, the closing date, what is included and any conditions. Ask a real estate lawyer to review it.
5. Complete your conditions
Conditions give you time to complete key checks after your offer is accepted. The most common are financing and a home inspection. For a condominium, your lawyer also reviews the status certificate. Each condition has a deadline, so line up your lender and your inspector before you make an offer.
6. Close
Your lawyer searches title, arranges title insurance, registers the transfer and pays the land transfer tax. Before closing, do a final walk-through to confirm the home is in the condition you agreed to. On closing day the funds are released and you receive the keys.
A useful first conversation starts with three numbers: the down payment you have saved, the monthly payment you are comfortable with and your pre-approval amount, once you have one. Buying with Poonam explains what happens next, or get in touch when you are ready.
Note: this article is general information, not legal or financial advice. Rules, rates and limits change, so confirm current details with your lender, lawyer or accountant. Poonam Babbar, REALTOR®, eXp Realty of Canada, Inc., Brokerage.
Questions this article answers
How much down payment do I need to buy a home in Ottawa?
In Canada, the minimum down payment is 5% of the first $500,000 of the price and 10% of the portion between $500,000 and $1.5 million. A home priced at $1.5 million or more needs at least 20% down. These are the federal minimums at the time of writing, and lenders can ask for more, so confirm the current rules with your lender or mortgage broker.
Does Ottawa have a municipal land transfer tax?
No. Ottawa buyers pay Ontario’s provincial land transfer tax, but the City of Ottawa does not add a municipal land transfer tax on top. Your lawyer calculates the exact amount and collects it on closing.
Can first-time buyers get a land transfer tax rebate in Ontario?
Yes. Eligible first-time buyers can receive a refund of Ontario land transfer tax, currently up to $4,000. Conditions apply, including living in the home as your principal residence within a set period, so check the current rules on ontario.ca or with your lawyer.
What savings programs can help a first-time buyer?
Two federal programs are worth asking about: the First Home Savings Account (FHSA) and the RRSP Home Buyers’ Plan. Each has its own limits and conditions, and they change from time to time, so ask your bank, a mortgage professional or an accountant for current figures.
What conditions should I put in an offer?
Many buyers include a financing condition and a home inspection condition, and for a condominium a review of the status certificate. Poonam explains which conditions suit your situation, and a real estate lawyer should review the agreement.
Neighbourhoods in this article
Barrhaven neighbourhood guide
South Ottawa. Barrhaven is a large suburban community in Ottawa’s south end, beyond the Greenbelt, known for newer homes and everyday amenities.
Kanata neighbourhood guide
West Ottawa. Kanata is a large west-end community with a major technology employment area, established neighbourhoods and newer subdivisions.
Orleans neighbourhood guide
East Ottawa. Orleans is an established east-end community with a francophone heritage, a bilingual character and Ottawa River green space nearby.
The Glebe neighbourhood guide
Central Ottawa. The Glebe is a walkable central neighbourhood beside the Rideau Canal, built around Bank Street and the redeveloped Lansdowne Park.
About the author
Poonam Babbar
REALTOR®, eXp Realty of Canada, Inc., Brokerage
Poonam Babbar guides buyers, sellers and people relocating to Ottawa. She works in English, Hindi and Punjabi.
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