What is the minimum down payment for a $600,000 Ottawa home?

$35,000. That's 5% on the first $500,000 ($25,000) plus 10% on the portion from $500,000 to $600,000 ($10,000).

Can my parents give me my down payment in Ottawa?

Yes. Lenders accept gifted down payments from immediate family with a signed gift letter confirming the funds are not a loan. Keep a paper trail of the transfer.

Do I need 20% down to buy in Ottawa?

No — only on homes above $1.5M. Below that, you can buy with as little as 5%. Most Ottawa first-time buyers put down 5–10%.

Can I use my TFSA for a down payment?

Yes. TFSA withdrawals are tax-free and don't have qualifying rules, which makes the TFSA a flexible complement to the FHSA and HBP.

How long does my down payment need to be in my account?

Lenders typically want to see funds in your account for 90 days. If the money arrived recently, you'll need to document the source (FHSA/RRSP withdrawal, property sale, gift letter).

Can I borrow my down payment?

Borrowed down payments are technically allowed by some lenders but reduce how much you can qualify for, since the payments on the loan count against your debt-service ratios. Most Ottawa buyers don't go this route.

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

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Ottawa First-Time Buyer Cluster

Down Payment Guide for Ottawa Buyers

Your down payment is the single biggest gate between you and an Ottawa home. The minimum is lower than most buyers think — but the smart number is usually higher than the minimum.

This guide breaks down the federal minimums, what works for each Ottawa price band, where the money should come from, and how to sequence savings so it lands in cash on closing day.

Federal minimum down payment rules

Canadian minimums tier by purchase price:

Up to $500,000: 5% of purchase price
$500,000–$1,500,000: 5% on the first $500K + 10% on the portion above
Above $1,500,000: 20% on the entire purchase price (no insurance available)

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

Ottawa worked examples by price band

$450,000 (entry condo in Centretown or south Ottawa): minimum $22,500 (5%).

$600,000 (townhome in Barrhaven, Kanata, or Orléans): minimum $35,000 ($25K on first $500K + $10K on the next $100K).

$750,000 (semi or smaller detached in Stittsville or Riverside South): minimum $50,000.

$900,000 (detached in Westboro, Kanata Lakes, or Half Moon Bay): minimum $65,000.

$1,200,000 (detached in the Glebe, Alta Vista, or Manotick): minimum $95,000.

$1,600,000 (executive home in Rockcliffe or Rothwell Heights): minimum $320,000 (20% required).

Step-by-step: building your down payment

1. Open an FHSA today — even with no contribution — to start banking room. 2. Direct new savings to the FHSA first (deductible + tax-free withdrawal). 3. Use the RRSP Home Buyers' Plan for the second tier of savings ($60K per person). 4. Use TFSA savings as the flexible buffer. 5. Keep all funds in liquid, low-volatility instruments within 12 months of buying — Ottawa closings don't wait for markets to recover.

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

Where the down payment can come from

Lenders accept down payments from: your own savings (FHSA, RRSP, TFSA, non-registered), gifted funds from immediate family (with a signed gift letter), and proceeds from selling another property.

All funds must be in your account for at least 90 days before closing, or you'll need a paper trail showing the source. Underwriters will ask — plan ahead.

Gifted down payments in Ottawa

About a third of my Ottawa first-time buyers receive some form of family gift. Lenders accept gifts from parents, grandparents, and siblings with a signed gift letter stating the funds are not a loan.

Document the wire or transfer. Underwriters will trace gifted funds back to the giver's account — keep a clean record.

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

Should you put more than the minimum down?

Putting 20%+ down avoids CMHC insurance (and the 8% Ontario PST on it), but in Ottawa's appreciating market, waiting an extra two years to hit 20% often costs more than the insurance premium would.

A common Ottawa sweet spot is 10–15% down: meaningful equity, manageable insurance premium, and you stay in market while you save.

How to time your down payment with closing

Down-payment funds must clear into your lawyer's trust account several business days before closing. FHSA and RRSP qualifying withdrawals can take 5–10 business days. Start the paperwork early — don't wait for the firm sale.

I coordinate this timeline with your lawyer and mortgage broker on every transaction.

FAQ

Frequently asked questions

What is the minimum down payment for a $600,000 Ottawa home?: $35,000. That's 5% on the first $500,000 ($25,000) plus 10% on the portion from $500,000 to $600,000 ($10,000).
Can my parents give me my down payment in Ottawa?: Yes. Lenders accept gifted down payments from immediate family with a signed gift letter confirming the funds are not a loan. Keep a paper trail of the transfer.
Do I need 20% down to buy in Ottawa?: No — only on homes above $1.5M. Below that, you can buy with as little as 5%. Most Ottawa first-time buyers put down 5–10%.
Can I use my TFSA for a down payment?: Yes. TFSA withdrawals are tax-free and don't have qualifying rules, which makes the TFSA a flexible complement to the FHSA and HBP.
How long does my down payment need to be in my account?: Lenders typically want to see funds in your account for 90 days. If the money arrived recently, you'll need to document the source (FHSA/RRSP withdrawal, property sale, gift letter).
Can I borrow my down payment?: Borrowed down payments are technically allowed by some lenders but reduce how much you can qualify for, since the payments on the loan count against your debt-service ratios. Most Ottawa buyers don't go this route.

Verify the numbers yourself

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