The Hidden Costs of Buying a Home in Ottawa in 2025: What Buyers Need to Know

Feb 21

Buying a home in Ottawa isn’t just about the listing price. In 2025, with changing regulations, evolving market trends, and new homeowner responsibilities, many buyers are getting caught off guard by extra costs. If you’re planning to buy a home this year, understanding these hidden expenses can help you budget better and avoid financial surprises.

1. Land Transfer Tax (Yes, There’s More Than One)

Every homebuyer in Ottawa has to pay Ontario’s Land Transfer Tax (LTT), which is based on the purchase price of the property. But did you know that first-time buyers can get a rebate of up to $4,000?

Pro Tip: On a $600,000 home, your LTT would be around $8,475. If you're not a first-time buyer, make sure to budget for this upfront.

2. Legal Fees & Title Insurance

Hiring a real estate lawyer is non-negotiable when buying a home in Ontario. You’ll need them to review your contract, handle title transfers, and ensure a smooth closing process.

Legal fees: Expect to pay between $1,500 and $3,000.
Title insurance: Costs around $250 to $500 but protects you against ownership disputes or fraud.

3. Home Inspection Fees

In competitive markets, some buyers skip home inspections, but that can be risky. A home inspection in Ottawa typically costs between $400 and $700, and if you're buying a condo, you might want a separate inspection for plumbing and electrical.

2025 Update: With stricter building codes in place, new-build homes are seeing fewer inspection issues, but older homes in neighbourhoods like The Glebe and Westboro may have surprises, like knob-and-tube wiring or foundation cracks.

4. Mortgage Default Insurance (If Your Down Payment Is Under 20%)

If you’re putting down less than 20%, you’ll need to pay CMHC mortgage insurance. This cost is added to your mortgage, but it affects your monthly payments.

📊 Example:

5% down on a $500,000 home = $19,000 in CMHC insurance fees
10% down on a $500,000 home = $13,950 in CMHC insurance fees

5. Moving Costs (And Why They're Higher in 2025)

Moving in Ottawa isn’t cheap, especially with higher fuel prices and demand for moving companies.

Local moves: $1,000 – $2,500
Long-distance moves: $3,000+
DIY option (truck rental): $200 – $500

New for 2025: Many moving companies now charge a carbon offset fee to account for emissions, adding an extra $50–$150 to your total.

6. Utility Hookups & Property Tax Adjustments

When you take possession of your home, you may need to pay adjustments to cover prepaid property taxes, utilities, and condo fees (if applicable).

Hydro, gas, and water deposits: Some providers require upfront payments if you have no previous account.
Property tax adjustments: If the seller prepaid taxes for the year, you’ll need to reimburse them for the portion covering your ownership period.

Example: If property taxes are $6,000/year and you close in August, you may owe the seller $2,500 for the remainder of the year.

7. Home Insurance (Required Before Closing)

Your lender will require you to get home insurance before closing day, or they won’t release the mortgage funds.

Basic home insurance: $1,000 – $2,500 per year
Extras for flood-prone areas: If you're buying near the Rideau River, Kanata Lakes, or Barrhaven, expect higher premiums due to flood risk.

2025 Tip: Some insurance providers are now charging extra for extreme weather coverage, so be sure to ask about this before finalizing your policy.

8. Condo Fees (If You're Buying a Condo)

Condos in Ottawa come with monthly maintenance fees, which cover building upkeep, amenities, and sometimes utilities.

Average condo fees in 2025: $350 – $800/month, depending on the building and location.
Newer buildings: Typically have lower fees but may increase as the building ages.

Hidden Fee Alert: Some buildings have special assessments, meaning unit owners may be charged thousands of dollars for major repairs. Always review the status certificate before buying.

9. Renovation & Repair Costs

Even if you’re buying a move-in-ready home, there may be small fixes you want to make.

Painting: $2,000 – $5,000 for a full interior repaint.
New appliances: Budget $3,000 – $10,000 if you need to replace old ones.
Roof replacement: $5,000 – $15,000 (important for older homes).

2025 Trend: Many Ottawa buyers are prioritizing homes with recent renovations, as the cost of materials has continued to rise.

How to Budget for Hidden Costs in 2025

A good rule of thumb is to set aside 3–5% of your home’s purchase price for unexpected costs. If you’re buying a $600,000 home, that means having an extra $18,000 – $30,000 on hand for closing and move-in expenses.

Thinking About Buying in 2025? Let’s Talk!

Buying a home in Ottawa is exciting, but it’s important to plan ahead for the real costs. If you’re looking for expert advice and a stress-free home-buying experience, contact New Purveyors today to start your search with confidence.

Reach out now to get started!