How much should I budget for closing costs in Ottawa?

1.5%–2% of purchase price in cash. On a $600,000 Ottawa home, that's roughly $9,000–$12,000 on top of your down payment.

Does Ottawa charge a municipal Land Transfer Tax?

No. Only Toronto charges a municipal LTT. Ottawa buyers pay only the Ontario LTT.

What is the Ontario first-time buyer LTT rebate?

Up to $4,000 off Ontario Land Transfer Tax for qualifying first-time buyers, applied at closing by your lawyer.

Are closing costs different for new construction in Ottawa?

Yes — add development charges, education levies, Tarion enrolment, and HST adjustments. Budget $20,000–$45,000 in total closing-day cash beyond your down payment on a $700,000 new-build freehold.

Can closing costs be added to my mortgage?

Cash closing costs (LTT, legal, title insurance, PST on CMHC) cannot — they're paid from your own funds. Only the CMHC premium itself rolls into the mortgage.

Do I pay HST on a resale home in Ottawa?

No — HST does not apply to resale residential homes. It applies only to new construction, where pricing is usually advertised inclusive of HST.

House keys, mortgage paperwork, and a small house model on a desk

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Ottawa First-Time Buyer Cluster

Closing Costs Guide for Ottawa First-Time Buyers

Closing costs are the cash you need on top of your down payment to actually take possession of an Ottawa home. They're the single biggest surprise for first-time buyers — and the easiest part of the deal to under-budget.

Budget 1.5%–2% of the purchase price in cash, with the Ontario first-time buyer Land Transfer Tax rebate offsetting up to $4,000.

This guide walks through every line item, what each costs, and where Ontario rebates and federal programs reduce the bill.

Ontario Land Transfer Tax (LTT)

Ontario LTT is tiered: 0.5% on the first $55,000, 1.0% from $55,000–$250,000, 1.5% from $250,000–$400,000, 2.0% from $400,000–$2M, and 2.5% above $2M.

On a $600,000 Ottawa home, the LTT before rebate is $8,475. First-time buyers receive up to $4,000 back through the Ontario First-Time Home Buyer Rebate, applied at closing by your lawyer.

Ottawa does NOT charge a municipal Land Transfer Tax — that's Toronto-only. Ottawa buyers pay only the Ontario LTT.

Laptop with real estate listings and mortgage paperwork on a kitchen table — Planning a purchase, mortgage and closing from the kitchen table.

Legal fees and disbursements

Your real estate lawyer charges a flat fee plus disbursements (title search, registration, courier, software). Standard Ottawa resale: $1,800–$2,500 all-in. New construction or complex titles: add $500–$1,500.

I work with several experienced Ottawa real estate lawyers and can refer you to one who matches your transaction.

Title insurance

A one-time premium of roughly $400–$600 that protects you against title defects, fraud, and certain survey issues. Required by most Ontario lenders. Paid through your lawyer at closing.

Young family at the front door of their new Ottawa home — First-time buyers stepping into their Ottawa home.

Home inspection

Optional but strongly recommended on any resale Ottawa home. Standard residential inspection: $500–$700. Rural Ottawa homes (Manotick, Greely, Russell) often need add-on inspections: septic ($300–$500), well water ($200–$400), WETT for wood stoves ($150–$300).

Property tax and utility adjustments

On closing day, you reimburse the seller for any property taxes or utilities they've prepaid past your closing date. Usually a few hundred to a couple of thousand dollars depending on closing date and what's been billed.

Row of modern detached suburban homes in west Ottawa — Family-friendly suburbs like Kanata, Barrhaven and Stittsville.

PST on CMHC insurance

If you put less than 20% down, your CMHC premium is added to your mortgage — but the 8% Ontario PST on that premium is paid in cash at closing. On a $600,000 Ottawa home with 5% down, that's roughly $1,800 in cash.

Mortgage-related costs

Appraisal: $350–$500 (often covered by the lender on insured mortgages). Mortgage broker fees: typically $0 for prime mortgages (broker is paid by the lender). Property valuation surveys are usually waived in favour of title insurance.

Condo-specific costs

Status certificate fee ($100) if not provided by the seller. Estoppel certificate and reserve fund summary review (your lawyer's time). First-month common-element fees adjustment at closing.

New-construction extras

Tarion enrolment fee (often pre-paid by the builder, sometimes passed through). HST adjustments on the rebate. Development charges, education levies, and lot levies — Ottawa builders pass these through at closing and they can total $10,000–$25,000 on a single-family home unless capped by the agreement.

Step-by-step: planning your closing-day cash

1. Get a closing-cost worksheet from your lawyer or realtor 30 days before closing. 2. Wire down payment + closing cash to your lawyer 3 business days before closing. 3. Confirm the Ontario LTT rebate is being applied if you're a first-time buyer. 4. Confirm utilities are transferred for the day after closing. 5. Pick up keys.

FAQ

Frequently asked questions

How much should I budget for closing costs in Ottawa?: 1.5%–2% of purchase price in cash. On a $600,000 Ottawa home, that's roughly $9,000–$12,000 on top of your down payment.
Does Ottawa charge a municipal Land Transfer Tax?: No. Only Toronto charges a municipal LTT. Ottawa buyers pay only the Ontario LTT.
What is the Ontario first-time buyer LTT rebate?: Up to $4,000 off Ontario Land Transfer Tax for qualifying first-time buyers, applied at closing by your lawyer.
Are closing costs different for new construction in Ottawa?: Yes — add development charges, education levies, Tarion enrolment, and HST adjustments. Budget $20,000–$45,000 in total closing-day cash beyond your down payment on a $700,000 new-build freehold.
Can closing costs be added to my mortgage?: Cash closing costs (LTT, legal, title insurance, PST on CMHC) cannot — they're paid from your own funds. Only the CMHC premium itself rolls into the mortgage.
Do I pay HST on a resale home in Ottawa?: No — HST does not apply to resale residential homes. It applies only to new construction, where pricing is usually advertised inclusive of HST.

Verify the numbers yourself

Primary sources I rely on for current Ottawa real estate data, government incentives and consumer protection.

Want a closing-cost worksheet for your specific Ottawa purchase?

Send me your target price and I'll prepare a one-page closing-cost estimate before you make an offer.

Request a closing-cost worksheet

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