Ottawa First-Time Home Buyer FAQ 2026

How much do I need saved before I can buy in Ottawa?

At minimum, you need your down payment plus closing costs. On a $700,000 Ottawa home, that's roughly $47,000 down payment (minimum) plus $12,000–$15,000 in closing costs — so about $60,000 liquid. Most mortgage professionals recommend having 3–6 months of mortgage payments in reserve on top of that.

What's the difference between pre-qualification and pre-approval?

Pre-qualification is an informal estimate based on information you provide verbally. Pre-approval is a formal process where the lender verifies your income, credit, and assets — and commits to lending you a specific amount at a specific rate for 90–120 days. Always get pre-approved before you start viewing homes seriously.

Do I need a REALTOR® as a first-time buyer?

You're not legally required to use one — but as a first-time buyer, you'd be navigating an offer, inspection conditions, closing costs, and legal requirements for the first time, without professional representation. In Ontario, the seller typically pays the buyer's agent commission. Working with a REALTOR® costs you nothing and protects you throughout the process.

What is the FHSA and should I open one?

The First Home Savings Account is a registered account where contributions are tax-deductible and withdrawals for a first home are completely tax-free — with no repayment required. It's the most powerful first-home savings tool Canada has ever offered. Yes, you should open one. Do it today, even with $1. Contribution room only starts accumulating after the account is open.

Can I use both the FHSA and the RRSP Home Buyers' Plan?

Yes. You can use both programs for the same purchase. A couple can access up to $80,000 from FHSA (no repayment) and $120,000 from RRSP HBP (repay over 15 years) — $200,000 combined tax-advantaged toward their first home. Always use FHSA first since it has no repayment requirement.

What is the Ontario Land Transfer Tax and do first-time buyers get a rebate?

The Ontario Land Transfer Tax is a provincial tax paid on every home purchase. On a $700,000 home it's approximately $10,475. First-time buyers in Ontario get a rebate of up to $4,000 — applied automatically by your lawyer at closing. Ottawa buyers only pay the Ontario LTT (unlike Toronto buyers who also pay a municipal LTT).

How long does it take to close on a home in Ottawa?

The typical closing period in Ottawa is 30 to 90 days from the accepted offer. 60 days is the most common. You can negotiate the closing date with the seller — if you need more or less time, your REALTOR® will build that into the offer.

Do I need a home inspection as a first-time buyer?

It's not legally required but it's strongly recommended. A home inspection costs $450–$650 in Ottawa and gives you a professional assessment of the property's condition. It can uncover issues you'd never see during a viewing, and gives you negotiating power to ask for repairs or a price reduction.

What's the best Ottawa neighbourhood for first-time buyers?

There isn't a single answer — it depends on where you work, your budget, and how you want to live. Barrhaven is great for families wanting a complete suburb. Kanata is ideal for tech workers and those wanting housing variety. Orléans suits bilingual families and outdoor lifestyle buyers. Riverside South is the best pick for downtown commuters wanting newer construction. See our full Ottawa Neighbourhoods Guide for a detailed breakdown.

How do I choose a REALTOR® as a first-time buyer?

Look for someone who works primarily with buyers (not just listings), knows the specific neighbourhoods you're interested in, communicates clearly, and is available during your search. Ask how many Ottawa first-time buyer transactions they've completed in the last year. The right REALTOR® makes the process feel manageable — not overwhelming.