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

Back to Ottawa homepage

Ottawa Buyer Resources

First-Time Home Buyer in Ottawa — The Complete Guide

Buying your first home in Ottawa can feel overwhelming — between FHSAs, RRSP withdrawals, CMHC insurance, land transfer tax rebates, and a market that shifts every quarter, there's a lot to track.

This guide walks through the entire process step by step: how much you actually need to save, which government programs apply to first-time buyers, what closing costs look like in Ontario, and what your timeline should realistically be from pre-approval to keys.

How much down payment do you need in Ottawa?

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 a 20% down payment because CMHC insurance isn't available.

For a typical Ottawa entry-level home around $600,000, that means a minimum down payment of roughly $35,000. Most first-time buyers in Ottawa land 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.

First Home Savings Account (FHSA)

The FHSA is the most powerful first-time buyer tool in Canada. You can contribute up to $8,000 per year (lifetime limit $40,000), deduct the contribution from your taxable income, and withdraw it tax-free to buy a qualifying first home.

Two people buying together can stack two FHSAs — up to $80,000 of tax-free, tax-deductible down-payment savings between you. Open the account now even if you can't contribute yet — contribution room only starts accruing after the account is opened.

Home Buyers' Plan (RRSP)

The Home Buyers' Plan lets first-time buyers withdraw up to $60,000 each from their RRSPs (so $120,000 between two buyers) toward a down payment, tax-free, with 15 years to repay.

FHSA and the Home Buyers' Plan stack — most Ottawa first-time buyers use both.

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

CMHC mortgage default insurance

If you put less than 20% down, your lender requires CMHC (or Sagen/Canada Guaranty) mortgage insurance. The premium ranges from 2.8% to 4.0% of the mortgage amount and is added to your loan — not paid up front.

On a $600,000 purchase with 5% down, expect roughly $22,000 in CMHC premium added to your mortgage. The trade-off: you get the home with a much smaller cash outlay.

Mortgage pre-approval

Get a real pre-approval (not a rate hold) before you tour. Your mortgage broker or bank will verify income, employment, credit, and down payment and give you a maximum purchase price and locked rate good for 90–120 days.

I work with several Ottawa mortgage brokers and can 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.

Closing costs in Ottawa

Budget 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

The step-by-step Ottawa buying process

1. Pre-approval with a mortgage broker. 2. First call with me to scope neighbourhoods, must-haves, and timeline. 3. Set up MLS alerts and tour active listings. 4. Make an offer and negotiate price and conditions. 5. Conditional period: financing, inspection, status (for condos). 6. Firm sale, deposit released, lawyer engaged. 7. Closing day: legal fees paid, keys in hand.

Most Ottawa first-time-buyer searches take 6–12 weeks from first tour to firm offer. Build patience into the plan — the right house always comes.

FAQ

Frequently asked 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.

Verify the numbers yourself

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

Ready to start your first-home journey in Ottawa?

Book a free, no-pressure consultation. We'll map out your budget, neighbourhoods, and timeline together.

Book a first-time buyer consultation

Ottawa in focus