Ottawa Down Payment Guide 2026: How Much You Actually Need

The Minimum Down Payment in Ottawa

In Canada, the minimum down payment depends on your purchase price:

• Homes up to $500,000: 5% minimum — that's $25,000 on a $500,000 home
• Homes $500,001 to $999,999: 5% on the first $500,000 + 10% on the remainder
• Homes $1,000,000 and over: 20% minimum — no CMHC insurance available

In Ottawa, where the average home price is $721,270 as of May 2026, a typical first-time buyer needs roughly $47,127 minimum as a down payment. That's 5% on $500,000 ($25,000) plus 10% on the remaining $221,270 ($22,127).

CMHC Mortgage Insurance — What It Costs and When You Pay It

If your down payment is less than 20%, you're required to purchase CMHC mortgage default insurance. This protects the lender — not you — but you pay for it.

• 5–9.99% down: 4.0% of the mortgage amount
• 10–14.99% down: 3.1% of the mortgage amount
• 15–19.99% down: 2.8% of the mortgage amount

On a $700,000 home with 5% down ($35,000), your CMHC premium would be approximately $26,600 — added to your mortgage, not paid upfront. You'll pay interest on it over the life of the loan.

The Down Payment Sweet Spot

Most financial advisors and mortgage professionals in Ottawa agree: 10% down is often the sweet spot for first-time buyers who can't reach 20%.

Going from 5% to 10% down drops your CMHC premium from 4.0% to 3.1% — saving thousands in insurance costs and reducing your monthly payment meaningfully.

Going from 10% to 20% eliminates CMHC entirely but requires a much larger lump sum. For most Ottawa first-time buyers in 2026, reaching 20% means waiting significantly longer to buy — and potentially missing the market.

How the FHSA Turbocharges Your Down Payment Savings

The First Home Savings Account (FHSA) is the most powerful first-home savings tool Canada has ever introduced. Here's why it's so good:

• Contributions are tax-deductible like an RRSP
• Withdrawals for a qualifying first home are completely tax-free like a TFSA
• No repayment required — unlike the RRSP Home Buyers' Plan
• $8,000 per year contribution limit, $40,000 lifetime maximum
• Unused room carries forward up to $8,000

Stacking FHSA with the RRSP Home Buyers Plan

Here's the strategy that most Ottawa first-time buyers don't know about:

You can use both the FHSA and the RRSP Home Buyers' Plan for the same purchase. For a couple in 2026, that means:

• FHSA: $40,000 each = $80,000 combined (no repayment)
• RRSP HBP: $60,000 each = $120,000 combined (repay over 15 years)
• Total: up to $200,000 tax-advantaged for your down payment

The recommended order: maximize FHSA first (no repayment, better tax treatment), then use RRSP HBP for additional funds if needed.

On a $721,270 Ottawa home, a couple who has maxed both programs has their 20% down payment covered — eliminating CMHC insurance entirely.