How Much You Need to Save to Buy a Home in Ottawa in 2025

If you are thinking about buying a home in Ottawa in 2025, one of the first and most important questions you might ask is, “How much do I need to save?” With Ottawa's real estate market remaining competitive but stabilizing in some areas, being financially prepared is more important than ever.

This guide will walk you through the key expenses you need to consider when saving for a home, including your down payment, closing costs, and additional hidden expenses you may not have thought about.

By understanding the full financial picture, you can create a savings plan that sets you up for success.

Average Home Prices in Ottawa in 2025
As of early 2025, the average home price in Ottawa is approximately $660,000 for all property types combined. Here is a general breakdown:

• Condo apartments: Around $420,000

• Townhomes: Around $580,000

• Detached homes: Around $760,000

Keep in mind that prices vary significantly depending on the neighbourhood, property type, and proximity to major amenities like the new LRT stations.

1. Down Payment Requirements in 2025
In Canada, your minimum down payment depends on the purchase price of the home:

• Homes under $500,000: Minimum 5% down

• Portion between $500,000 and $999,999: 5% on the first $500,000 + 10% on the remainder

• Homes $1 million and up: 20% minimum down payment required

Example: If you purchase a $660,000 home in Ottawa:

• First $500,000 = 5% = $25,000

• Remaining $160,000 = 10% = $16,000

• Total minimum down payment = $41,000

However, putting down less than 20% means you will also need to pay mortgage default insurance through CMHC, Sagen, or Canada Guaranty. This insurance can add between 2.8% and 4.0% to your mortgage, depending on how much you put down.

Tip:
If you can save 20% or more, you avoid mortgage insurance costs and reduce your monthly payment significantly.

2. Closing Costs You Must Budget For
Many first-time buyers underestimate the amount needed for closing costs. These typically range from 3% to 5% of the purchase price and include:

• Land Transfer Tax: Ontario charges land transfer tax, and Ottawa buyers pay an additional municipal land transfer tax. First-time buyers may qualify for up to $4,000 rebate.

• Legal Fees: Approximately $1,500 to $2,500

• Title Insurance: $300 to $500

• Home Inspection: $400 to $700

• Appraisal Fee (if required): $300 to $500

• Adjustment Costs: Covers property taxes, utilities, or condo fees the seller has prepaid.

Estimate:
For a $660,000 home, closing costs could be between $20,000 and $30,000 depending on the specifics of the transaction.

3. Additional Costs to Consider

Home Insurance:
Most lenders require proof of home insurance before closing. Expect to pay around $800 to $1,200 annually in Ottawa.

Moving Expenses:
Professional moving services in Ottawa generally cost between $800 and $2,000, depending on distance and volume.

Utility Set-Up Costs:
Hydro Ottawa, Enbridge Gas, and other service providers often require set-up fees or deposits, which can range from $100 to $300.

Immediate Repairs or Updates:
Even newer homes may require small updates such as painting, appliance purchases, or minor repairs. Budgeting an additional $2,000 to $5,000 is wise.

Furniture and Décor:
If you are moving from a rental or your parents’ home, furnishing a house can add up quickly. Costs vary widely but can easily surpass $5,000 if starting from scratch.

Total Savings Recommendation

Based on current 2025 prices and estimated costs, if you are purchasing a condominium in Ottawa priced around $420,000, you should plan to save at least $35,000 to $40,000, which covers the minimum down payment of approximately $21,000 plus estimated closing costs between $12,000 and $18,000. For a townhome priced around $580,000, the recommended total savings would be between $50,000 and $60,000, factoring in a down payment of about $33,000 and closing costs ranging from $17,000 to $25,000. If you are aiming to buy a detached home with an average price of $760,000, you should plan to save approximately $80,000 to $90,000. This would include a minimum down payment of roughly $56,000 and closing costs between $22,000 and $30,000.

Note:
If you want to avoid CMHC mortgage insurance and put down 20%, you will need to save significantly more.

How Ottawa Buyers Are Making It Work in 2025

Given rising costs, many Ottawa buyers are:

• Using the Home Buyers’ Plan (HBP) to withdraw from RRSPs

• Combining down payment gifts from family with personal savings

• Starting smaller with condos or townhomes before upsizing later

• Looking to buy near upcoming LRT extensions where prices are lower but expected to rise

Conclusion
Buying a home in Ottawa in 2025 requires careful planning and disciplined saving, but it is absolutely achievable with the right strategy. Understanding the full range of expenses beyond just the down payment will help you feel confident and ready when the right property comes along.

If you are considering buying your first home or making a move this year, reach out to New Purveyors. We can help you plan your purchase, connect you with trusted mortgage brokers, and find the right home for your budget and goals.

Fill out the form below for more info.