Total Cost of Buying a Home in Ottawa: A Breakdown

You’ve found the perfect three-bedroom detached house in Barrhaven, or maybe a sleek condo in Westboro. The listing price is right at the top of your budget, but you figure you can just squeeze it in. Before you sign on the dotted line, you need to pause. That listing price is only the beginning of the story.

When buying a home in Ottawa, the “sticker price” is really just the entry fee. To get the keys in your hand, you need to navigate a series of closing costs, taxes, and fees that can add thousands—sometimes tens of thousands—of dollars to your final bill.

This guide breaks down exactly what you need to budget for so you aren’t caught off guard on closing day.

1. The Down Payment

While technically part of the purchase price, the down payment is the biggest upfront cash requirement. In Canada, the minimum down payment depends on the home’s price:

$500,000 or less: 5% of the purchase price.
$500,000 to $999,999: 5% of the first $500k, and 10% for the portion above $500k.
$1 million or more: 20% of the total purchase price.

For a typical Ottawa townhome priced around $600,000, your minimum down payment would be $35,000 ($25,000 for the first portion, plus $10,000 for the remainder).

2. Land Transfer Tax (LTT)

This is often the most painful surprise for new buyers. When you buy land or an interest in land in Ontario, you must pay the provincial Land Transfer Tax.

Unlike Toronto, Ottawa does not have an additional municipal land transfer tax, but the provincial one is significant. The tax is calculated on a sliding scale based on the property value. For that hypothetical $600,000 home, you are looking at approximately $8,475 in taxes payable on closing.

Budget Tip: If you are a first-time homebuyer, you may be eligible for a rebate of up to $4,000 on this tax, which can significantly lower your upfront costs.

3. Legal Fees and Disbursements

You cannot buy a home without a real estate lawyer. Your lawyer handles the title search to ensure you’re buying a property free of liens, registers the deed, and facilitates the transfer of funds.

Lawyers charge a base fee for their services, plus “disbursements”—expenses they incur on your behalf, such as title search fees, registration costs, and courier charges.

Estimated Cost: $1,500 – $2,500.

4. Title Insurance

Most lenders require title insurance to protect their interest in your property against title fraud or survey errors. Even if it’s not mandatory, it is highly recommended for your own protection. It covers you if it turns out a previous owner did unpermitted renovations or if there are encroachments on the property line.

Estimated Cost: $250 – $500 (one-time fee).

5. Home Inspection

In a hot market, some buyers skip this step, but it is a risky gamble. A professional home inspection can reveal issues with the foundation, roof, electrical systems, or plumbing that aren’t visible during a showing. Finding a $10,000 furnace problem before you buy gives you leverage to negotiate—or walk away.

Estimated Cost: $500 – $800 depending on the size of the home.

6. Mortgage Default Insurance (CMHC Insurance)

If your down payment is less than 20% of the purchase price, the government requires you to purchase mortgage default insurance. This protects the lender if you stop making payments.

The good news is that you don’t usually pay this upfront in cash. It is added to your total mortgage amount and amortized over the life of your loan. However, Provincial Sales Tax (PST) on the insurance premium must be paid in cash at closing.

Estimated Cost: For a $600k home with the minimum down payment, the insurance premium is roughly $22,600 (added to mortgage). The PST (8% in Ontario) on that premium is about $1,808 payable immediately.

7. Appraisal Fees

Your lender needs to confirm that the property is actually worth what you agreed to pay for it. While many lenders will cover this cost as a perk for signing with them, some will pass the bill to you.

Estimated Cost: $300 – $500.

8. Property Tax Adjustments

This is a reimbursement cost. If the seller has already paid property taxes for the full year and you move in halfway through the year, you have to pay them back for the months you will own the home. Your lawyer calculates this exact amount (down to the day) in the Statement of Adjustments.

Estimated Cost: Variable. Could range from $0 to $3,000+ depending on the time of year and tax rate.

9. Moving Costs

Whether you bribe friends with pizza or hire a full-service team, moving isn’t free. In Ottawa, moving companies charge higher rates during peak season (summer) and at the beginning/end of the month.

Estimated Cost: $1,000 – $3,000 for professional movers; $200 – $500 for a DIY truck rental.

10. Immediate Maintenance and Utility Setup

You should set aside a “buffer fund” for the first month. This covers:

Utility setup fees: Hydro Ottawa, Enbridge, and internet providers may charge connection fees.
Immediate repairs: Changing locks, cleaning ducts, or fixing that leaky faucet.
Estimated Cost: $500 – $1,000.

Summary: The “Hidden” Total

Let’s tally up the estimated closing costs (cash required beyond the down payment) for a $600,000 home in Ottawa for a buyer with a minimum down payment:

Land Transfer Tax: ~$4,475 (assuming first-time buyer rebate)
Legal Fees: ~$2,000
Title Insurance: ~$400
Home Inspection: ~$600
PST on Mortgage Insurance: ~$1,800
Moving/Misc: ~$1,500
Adjustments: ~$500 (conservative estimate)

Total Estimated Closing Costs: ~$11,275

This means if you saved exactly $35,000 for your down payment, you are actually short by over $11,000.

Budgeting Tips for Success

The 1.5% – 4% Rule: A safe rule of thumb is to budget between 1.5% and 4% of the purchase price for closing costs.
Get Pre-Approved, Not just Pre-Qualified: Understand your hard numbers early.
Keep Your Liquidity: Don’t drain every penny of your savings for the down payment. House poor is a real condition, and you want to be able to enjoy your new Ottawa life, not just pay for the roof over your head.

Buying a home is the biggest purchase of your life. By accounting for the total cost—not just the listing price—you can move into your new Ottawa home with confidence and financial peace of mind. Contact Marc-Andre Perrier, Ottawa Real Estate Agent to help you make the right choice in 2026!