Ottawa Closing Costs 2026: What First-Time Buyers Actually Pay

The Closing Cost Overview

Plan to budget 1.5% to 3.5% of your purchase price in closing costs, on top of your down payment. These are due in cash on closing day — they cannot be rolled into your mortgage.

On a $700,000 Ottawa home, that's roughly $10,500 to $24,500 in additional costs. Most first-time buyers are surprised by this number. Don't be one of them.

Ontario Land Transfer Tax — and Your First-Time Buyer Rebate

Ontario charges a Land Transfer Tax on every home purchase. The rate is progressive:

• 0.5% on the first $55,000
• 1.0% on $55,001 to $250,000
• 1.5% on $250,001 to $400,000
• 2.0% on $400,001 to $2,000,000

On a $700,000 home, your Ontario LTT is approximately $10,475.

Good news for first-time buyers: Ontario offers a rebate of up to $4,000 on LTT for first-time buyers. This is applied automatically by your lawyer at closing — you don't claim it separately. On our $700,000 example, your net LTT after the rebate is approximately $6,475.

Legal Fees

You are required by law to use a real estate lawyer for every Ontario home purchase. Typical legal fees in Ottawa for a purchase:

• Legal fees: $1,200 to $2,000
• Title insurance: $200 to $400
• Disbursements (searches, registration): $400 to $800
• Total: approximately $1,800 to $3,200 + HST

Don't hire the cheapest lawyer you can find. A good real estate lawyer protects you from title issues, ensures the paperwork is correct, and communicates clearly. The difference between a $1,200 lawyer and a $1,800 lawyer is not worth the risk on a $700,000 purchase.

Home Inspection

A home inspection is not legally required in Ontario — but for a first-time buyer, it is strongly recommended. Typical cost in Ottawa:

• Standard home inspection: $450 to $650
• Condo inspection (less detailed): $300 to $450

The inspection report gives you negotiating power — you can ask the seller to fix issues or reduce the price — and it protects you from expensive surprises after closing.

Other Costs to Budget For

• Home insurance: You need proof of insurance on closing day. Budget $1,200 to $2,400/year for a house in Ottawa.
• Moving costs: $1,500 to $4,000 depending on distance and amount.
• Property tax adjustment: You'll reimburse the seller for any prepaid property tax. This varies but budget $500 to $2,000.
• Utility hookups and deposits: Minor but account for $200 to $500.
• Immediate repairs or upgrades: Budget a contingency of 1% of purchase price for the first year.

Quick Closing Cost Calculator — Ottawa 2026

On a $700,000 Ottawa home purchase, first-time buyer:

• Ontario Land Transfer Tax: $10,475
• Less first-time buyer rebate: — $4,000
• Net Land Transfer Tax: $6,475
• Legal fees + disbursements: $2,500 (estimated)
• Title insurance: $300
• Home inspection: $550
• Home insurance (first year): $1,500
• Moving costs: $2,500
• Total estimated closing costs: ~$13,825