What is the minimum down payment for a first-time buyer in Ottawa?

5% on the first $500,000 of price, 10% on the portion from $500,000 to $1.5M, and 20% above $1.5M. On a $600,000 Ottawa home that's roughly $35,000 minimum.

Can I use my FHSA and RRSP together?

Yes — and most Ottawa first-time buyers do. The FHSA gives you up to $40,000 lifetime (tax-deductible going in, tax-free coming out) and the Home Buyers' Plan adds up to $60,000 from your RRSP, repayable over 15 years.

Do first-time buyers in Ottawa get a Land Transfer Tax rebate?

Yes — Ontario offers up to $4,000 in Land Transfer Tax rebate for qualifying first-time buyers. Ottawa does not have a separate municipal LTT (that's Toronto-only).

How long does it take to buy a first home in Ottawa?

Most first-time buyers go from pre-approval to firm offer in 6–12 weeks, with closing 30–90 days after that. New construction takes longer — sometimes 12–36 months from contract to occupancy.

Should I buy a condo or a freehold as my first home?

It depends on your budget, lifestyle, and how long you'll stay. Condos give you a lower entry price and predictable maintenance; freeholds (townhomes and detached) give you full control and stronger appreciation in most Ottawa markets.

House keys and mortgage paperwork on a desk

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Ottawa Buyer Resources

What First-Time Buyers in Ottawa Need to Know About Money

By Bo Yu, Broker, Right at Home Realty, Brokerage

Buying your first home comes with a lot of new terms. This guide focuses on the money side: which savings programs you qualify for, how much cash you actually need, and which rebates take a bite out of your closing-day bill.

It covers the First Home Savings Account (FHSA), the RRSP Home Buyers' Plan, down payment minimums, CMHC default insurance, the Ontario Land Transfer Tax refund, and the federal Home Buyers' Amount. Each has its own eligibility rules, so confirm the details with your lender or lawyer. If you want the full purchase process instead, read the Ottawa Home Buying Guide.

Prices, rates, and program rules change often. Treat the figures here as general guidance, not advice for your specific situation. Ask Bo for current OREB comparables, and confirm program eligibility with your lender or lawyer.

How much do you actually need to save?

In Canada, the minimum down payment is 5% on the first $500,000 of purchase price and 10% on the portion between $500,000 and $1.5M. Above $1.5M you need 20% down, because CMHC insurance isn't available at that price point.

For a typical Ottawa entry-level home around $600,000, that works out to roughly $35,000 minimum. Most first-time buyers here have between $35,000 and $60,000 saved before they start touring.

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

The FHSA: probably your best savings tool

The First Home Savings Account (FHSA) is the strongest first-time buyer tool available in Canada right now. You can contribute up to $8,000 a year (lifetime limit $40,000), deduct the contribution from your taxable income, and later withdraw it tax-free to buy a qualifying first home.

Buying with a partner? You can stack two FHSAs for up to $80,000 in tax-free, tax-deductible down-payment savings between you. Worth opening the account now even if you can't contribute yet — the contribution room only starts building once it's open.

The Home Buyers' Plan (your RRSP)

The Home Buyers' Plan lets first-time buyers pull up to $60,000 each from their RRSPs — $120,000 between two buyers — toward a down payment, tax-free, with 15 years to pay it back.

You can use the FHSA and the Home Buyers' Plan together, and most Ottawa first-time buyers do.

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

CMHC insurance: what it is and why you might need it

If you put down less than 20%, your lender will require mortgage default insurance from CMHC (or Sagen/Canada Guaranty). It protects the lender, not you, and the premium — 2.8% to 4.0% of the mortgage amount — gets added to your loan rather than charged up front.

On a $600,000 purchase with 5% down, that's roughly $22,000 added to your mortgage. In exchange, you get into the home with far less cash up front.

Get pre-approved before you start looking

A pre-approval is different from a rate hold — it's a real check. Your mortgage broker or bank verifies income, employment, credit, and down payment, then gives you a maximum purchase price and a rate locked for 90–120 days.

I work with several Ottawa mortgage brokers and I'm happy to introduce you to one who specializes in first-time buyers if you don't have one yet.

Tree-lined Ottawa street of century brick homes in autumn — Central Ottawa's century homes and mature maple canopy.

Don't forget closing costs

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

Ontario Land Transfer Tax (with first-time buyer rebate of up to $4,000)
Legal fees and disbursements ($1,800–$2,500)
Title insurance ($400–$600)
Home inspection ($500–$700)
Property tax and utility adjustments to closing date
Moving costs and immediate repairs

How the process unfolds, roughly

1. Pre-approval with a mortgage broker. 2. A first call with me to talk neighbourhoods, must-haves, and timeline. 3. MLS alerts set up and touring begins. 4. An offer, with price and conditions negotiated. 5. A conditional period for financing, inspection, and status certificate review (condos). 6. Firm sale, deposit released, lawyer takes over. 7. Closing day — legal fees paid, keys handed over.

Most Ottawa first-time buyers spend 6–12 weeks between their first tour and a firm offer. Give yourself that time — the right house does show up.

Questions People Ask

A few common questions

What is the minimum down payment for a first-time buyer in Ottawa?: 5% on the first $500,000 of price, 10% on the portion from $500,000 to $1.5M, and 20% above $1.5M. On a $600,000 Ottawa home that's roughly $35,000 minimum.
Can I use my FHSA and RRSP together?: Yes — and most Ottawa first-time buyers do. The FHSA gives you up to $40,000 lifetime (tax-deductible going in, tax-free coming out) and the Home Buyers' Plan adds up to $60,000 from your RRSP, repayable over 15 years.
Do first-time buyers in Ottawa get a Land Transfer Tax rebate?: Yes — Ontario offers up to $4,000 in Land Transfer Tax rebate for qualifying first-time buyers. Ottawa does not have a separate municipal LTT (that's Toronto-only).
How long does it take to buy a first home in Ottawa?: Most first-time buyers go from pre-approval to firm offer in 6–12 weeks, with closing 30–90 days after that. New construction takes longer — sometimes 12–36 months from contract to occupancy.
Should I buy a condo or a freehold as my first home?: It depends on your budget, lifestyle, and how long you'll stay. Condos give you a lower entry price and predictable maintenance; freeholds (townhomes and detached) give you full control and stronger appreciation in most Ottawa markets.

Keep Reading

Ottawa Home Buying Guide

The complete buyer playbook for the Ottawa market.

Ottawa Mortgage Guide

Pre-approvals, rates, and lender choice for Ottawa buyers.

Ottawa Closing Costs Guide

Every closing cost line item, with sample numbers.

FHSA Ottawa Guide

How the First Home Savings Account works in Ottawa.

Down Payment Guide Ottawa

How much to save by Ottawa price band.

CMHC Insurance Guide Ottawa

Premium math and PST in cash at closing.

Mortgage Pre-Approval Guide Ottawa

Step-by-step pre-approval before you tour.

Ottawa Closing Costs Guide

Every line item, with first-time buyer rebates.

How to Buy Your First Home in Ottawa

The full 10-step buying process.

Straight From the Source

Check the numbers yourself

These are the official sources I use for current Ottawa real estate data, government programs and buyer protection.

Have questions about buying your first home in Ottawa?

Book a free, no-pressure conversation. We'll go through your budget, neighbourhoods, and timeline together.

Book a first-time buyer consultation

Any prices, rates, market figures or value estimates on this page are for general information only, based on the assumptions shown, and are not legal, tax, mortgage or financial advice or an offer of credit. Actual rates, payments, taxes, fees and values vary — confirm the numbers with your lender, lawyer or accountant before relying on them. Full disclosures.

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