How Much Down Payment for a House in Ottawa: What You Should Know?

Buying a home in Ottawa has always been a dream for many. The city boasts a perfect blend of urban life, lush green spaces, and steady growth. It makes it a great place to settle down. But before jumping into listings or open houses, there’s one question that almost every buyer asks first: How much down payment for a house in Ottawa?

When I started looking into buying my own place here, I realized there are many down payments than just “saving money.” It affects your mortgage, your monthly payments, and even whether you’ll need mortgage insurance.

The tricky part? Ottawa’s home prices keep shifting, and what worked a few years ago might not be enough today.

So, if you’re planning to buy a home in Ottawa, this guide will walk you through everything.  

Let’s start.

What’s a Down Payment?

Let’s begin with the basics.

A down payment is the money you pay up front when you buy a home. It’s your equity from day one. The rest comes from a mortgage (a loan).

So if your home costs $600,000, and you put down $60,000, your mortgage covers the remaining $540,000. Simple.

Why does it matter? Because:

• It affects how much you borrow
• It also affects your interest rate
• If it’s low, you may need mortgage default insurance

Thinking about buying your first home? Our guide for a first-time home buyer in Guelph covers everything you need to know to start your homeownership journey with confidence.

What are the Minimum Down Payment Rules in Canada?

In Canada, there are rules you can’t dodge. These are set by federal mortgage insurers like CMHC, Sagen, and Canada Guaranty.

Here’s how it works:

So even properties in Ottawa that are below $1 million can use just 5% as the base down payment, but parts above $500,000 often need 10%. That means for many Ottawa houses, you’ll be combining both brackets.

If your down payment is under 20%, you’ll need to buy mortgage default insurance. That cost is added to your mortgage (you don’t pay it out of pocket at closing). It’s based on a sliding scale (often 2.8% to 4% or so, depending on how small your down payment is).

How Much Down Payment for a House in Ottawa: Current Ottawa Home Prices 

In June 2025, the average home in Ottawa sold for $723,152, a 5.2% rise compared to June 2024. 

The MLS® benchmark (a “typical” home) in June was about $634,300, up 1.6% year-over-year. 

In August 2025, the average for all types (condo, house, etc.) was around $630,000, with single-family homes averaging $700,100. In February 2025, the average was $669,945 for homes sold. 

What this tells me: Ottawa’s market is strong, home values are high, and you need to plan around six hundred thousand or more often, especially for houses rather than condos.

How Much Down Payment for a House in Ottawa?

Let's understand with real examples, so you can see the scale.

Example A: A Home at $600,000

• Base down payment = 5% of $500,000 = $25,000
• Plus 10% on the remaining $100,000 = $10,000
• Total down payment = $35,000

Because it’s under $1M, you'll need mortgage default insurance added to your mortgage.

Example B: A Home at $800,000

• 5% on the first $500,000 = $25,000
• 10% on the next $300,000 = $30,000
• Total down = $55,000

Example C: A Home at $1,200,000

• Since this is over $1M, you are required to put down at least 20%
• 20% of $1,200,000 = $240,000

You don’t need mortgage insurance in this case because your down payment is 20% or more. So, when someone asks “how much down payment for a house in Ottawa,” I think first about the tier the property sits in.

How Mortgage Default Insurance Works?

If your down payment is less than 20%, you must pay for mortgage default insurance (CMHC, Sagen, or others). This protects the lender in case you default.

Here’s what you should know:

• The premium is calculated as a percentage of the purchase price (not just what you're borrowing).
• It gets added to your mortgage (you don’t pay it up front at the closing).
• Rates vary: e.g., 2.8%–4.0% depending on how low your down payment is.
• More risk (smaller down payment) → higher premium.

Suppose you buy a $600,000 home and put down $35,000 (about 5.83%). You may face a premium near, say, 3%. That’s $18,000 added to your mortgage (which is quite significant). Always factor that in when you write your budget.

Curious about extra home-buying costs? Learn all about the land transfer tax in Brampton and how it affects your budget before you purchase your dream home.

How to Save for Your Down Payment?

Saving for your down payment might seem challenging at first, but with the right plan, it’s completely doable. 

Step 1: Set a Clear Goal

Start by knowing how much you need. Check home prices in your area and decide how much you want to put down. A clear goal keeps you focused and motivated.

Step 2: Create a Budget

Track your income and expenses. See where your money goes each month. Cut out things you don’t really need, like extra subscriptions or frequent takeout meals. Every small saving helps.

Step 3: Open a Separate Savings Account

Keep your down payment money in a separate account. This way, you won’t be tempted to spend it. You can even set up automatic transfers so your savings grow without effort.

Step 4: Boost Your Income

Find ways to earn extra cash. Pick up a side job, freelance, or sell items you don’t use anymore. Put that extra money straight into your savings.

Step 5: Use Government Programs

If you’re a first-time homebuyer in Canada, check out the First Home Savings Account (FHSA) or Home Buyers’ Plan (HBP). Both can help you save faster and reduce taxes.

Small, consistent steps will get you closer to your down payment goal — and your dream home.

How to Buy a House in Ottawa – Step-by-Step Guide

Buying a house in Ottawa is an exciting step, but it can also feel challenging if you’re not sure where to start.

The good news? With the right plan and a bit of patience, the process becomes much easier. Have a quick look at the essential steps to buy a house in Ottawa.

Step 1: Set Your Budget

Start by figuring out how much you can afford. Look at your income, savings, and monthly expenses. Use a mortgage calculator to get a rough idea of your price range. This helps you shop for homes that fit your budget.

Step 2: Get Pre-Approved for a Mortgage

Before you start house hunting, get pre-approved. It tells you exactly how much a lender is willing to give you and makes you look serious to sellers.

Step 3: Pick the Right Neighborhood

Ottawa has many great areas. It includes downtown for city life, Barrhaven for families, or Kanata for tech professionals. Think about your lifestyle, commute, and what matters most to you before deciding.

Step 4: Find a Real Estate Agent

A local agent knows the Ottawa market well. They’ll guide you through listings, arrange showings, and help you negotiate the best deal.

Step 5: Make an Offer

Once you find your dream home, your agent will help you submit an offer. If it’s accepted, you’ll move to inspections, mortgage approval, and closing paperwork.

Step 6: Move In and Celebrate

After all the formalities, it’s time to get your keys and settle into your new Ottawa home. It is popular for its welcoming community, beautiful parks, and balanced city life. Our experienced mortgage brokers in Ottawa are here to help you secure the right mortgage.

Know Other Costs to Budget Beyond Down Payment

When buying a home, your down payment isn’t the only cost to plan for. First-time buyers often face extra expenses that can come as a surprise. It's smart to prepare for these costs in advance.

1. Closing Costs

These are the extra fees you pay when the deal closes. They usually range from 1.5% to 4% of your home’s price. This includes legal fees, land transfer tax, title insurance, and appraisal costs.

2. Home Inspection

Before buying, get the home inspected. It helps you find hidden issues like plumbing or roof problems. Spending a few hundred dollars now can save you thousands.

3. Home Insurance

Lenders usually require home insurance. It protects your property and belongings in case of fire, theft, or damage. Shop around for the best rate before you move in.

4. Moving Costs

Whether you hire movers or rent a truck, moving can be pricey. Add in packing supplies, gas, and setup fees for utilities or internet.

5. Utilities and Property Taxes

Once you move in, you’ll need to pay for heat, hydro, water, and internet. Don’t forget yearly property taxes — they can add up.

6. Furniture and Small Upgrades

You may want new furniture, curtains, or appliances. Set aside a small fund for these extras.

Which Neighborhoods in Ottawa Are Good for First-Time Buyers?

Your down payment affects what kind of home you can afford in Ottawa. Here’s an overview to help you plan.

• Barrhaven — More affordable, family-friendly, good amenities.
• Kanata — Popular with tech workers; good resale value.
• Orleans — Quiet zones, green spaces, decent pricing.
• Nepean — Balanced: access and price.
• Centretown / Close-in areas — More expensive, but walkable and central.

Your down payment goal largely dictates which of these you can target. If your down payment is on the lower side, you may need to look further out.

No matter if you’re buying in Toronto, Ottawa, or Brampton, we make finding affordable mortgages simple and stress-free for every homebuyer in the province. Get the best mortgage rates in Ontario with expert guidance.

What If Prices Dip? Future Market Trends

1. Stay Calm and Avoid Panic

Housing prices can go up and down. A small dip doesn’t mean you made a wrong choice. If you’ve planned well, including knowing how much down payment for a house in Ottawa requires, you’re still in a good position.

2. Think Long-Term

Real estate is usually a long-term investment. Short-term dips often recover over time. Focus on your lifestyle needs and plans rather than daily market changes.

3. Opportunity to Buy Smart

If prices dip, it could be a chance for buyers to enter the market. With the right down payment and budget, you might find a home that was previously out of reach.

4. Review Your Finances

Check your mortgage and budget. Ensure your payments are manageable even if interest rates or prices fluctuate.

5. Watch Market Trends

Keep an eye on Ottawa’s housing trends. Understanding where the market is heading helps you make informed decisions without stress.

Conclusion

When buying a home in Ottawa, understanding your down payment requirements is key to making the process as smooth. However, your down payment will vary based on the property's price.

However, it’s essential to remember that the down payment is just one part of the equation. Additional costs, such as closing fees, home inspections, and property taxes, can catch you off guard if you’re not prepared.

Are you ready to take the next step in your home-buying journey? Whether you’re a first-time buyer or moving up in the market, we’re here to help you explore Ottawa’s real estate market.

Looking for expert guidance beyond Ottawa? Consult with trusted mortgage brokers in Brampton. They can help you secure the best rates and make your home-buying process smooth and stress-free. Our team of experts is here to guide you every step of the way!