How much house can I afford in Ottawa?
Ottawa has no municipal land transfer tax, so buyers pay Ontario's tax only: $8,475 on a $600,000 home, or $4,475 after the first-time refund of up to $4,000. Any CMHC premium carries 8% sales tax, paid at closing. Ottawa's 2026 urban property tax is 1.271% of assessed value.
Worked examples use 4.12%, the Bank of Canada's average effective rate on new insured 5-year-plus fixed mortgages (2026-08), and are recalculated whenever our rules or rates are updated.
What's different about buying in Ottawa
Ottawa buyers follow Ontario's rules, with one important absence:
- Ontario land transfer tax only. Ottawa has no municipal land transfer tax, so the bill is half of what the same price costs in Toronto, where the City charges its own tax on top.
- Ontario's first-time refund of up to $4,000 applies.
- 8% sales tax on any CMHC premium, paid in cash at closing, as everywhere in Ontario.
The lending limits are national: GDS up to 39%, TDS up to 44%, at the stress-test rate. Property tax is where Ottawa differs most: its 2026 urban rate is well above Toronto's (more on that below).
Land transfer tax in Ottawa
Ontario's rates run from 0.5% on the first $55,000 to 2% between $400,000 and $2 million, and 2.5% above that. On a $600,000 purchase the tax is $8,475, or $4,475 for a qualifying first-time buyer. At a few example prices, with Toronto's double tax for comparison:
| Example price | Ottawa, repeat buyer | Ottawa, first-time buyer | Toronto, first-time buyer |
|---|---|---|---|
| $450,000 | $5,475 | $1,475 | $2,475 |
| $600,000 | $8,475 | $4,475 | $8,475 |
| $750,000 | $11,475 | $7,475 | $14,475 |
| $900,000 | $14,475 | $10,475 | $20,475 |
Ontario's refund needs a buyer who is a citizen or permanent resident, has never owned a home anywhere, and moves in within nine months. It is capped at $4,000 whatever the price. See the Ontario guide for the full brackets.
8% tax on the CMHC premium
With less than 20% down, the default-insurance premium is added to your mortgage, but Ontario's 8% retail sales tax on it is not. With the minimum down payment, the tax on a $500,000 purchase is $1,520 (on a $19,000 premium), and on $700,000 it is $2,096. Budget for it with the land transfer tax.
Ottawa property tax in 2026
For 2026 the City of Ottawa says an urban home pays $1,271 for every $100,000 of assessment, or 1.271% of assessed value, including the province-wide education rate of 0.153%. Rural homes pay less: $1,053 per $100,000 with reduced transit service and $1,004 with Para Transpo only. Council set the 2026 rates by by-law in May 2026.
That urban rate is noticeably higher than Toronto's 2026 total of 0.767%, and because lenders count property tax in your GDS ratio, it lowers how much you can borrow for the same income.
How much the tax rate changes your budget
Take a first-time buyer household earning $120,000, with a $60,000 down payment (closing costs come on top), $450 a month of other debts and an example rate of 4.12% over 25 years, with $100 a month for heat. Here is the lender maximum at Ottawa's three 2026 residential rates, and at Toronto's for comparison:
| Property tax rate | Maximum price | Property tax per year at that price | Land transfer tax, first-time |
|---|---|---|---|
| 1.00% | $559,500 | $5,617 | $3,665 |
| 1.05% | $556,400 | $5,859 | $3,603 |
| 1.27% | $543,400 | $6,907 | $3,343 |
| 0.77% | $574,600 | $4,407 | $3,967 |
Between Ottawa's urban rate and Toronto's lower one, the maximum moves by $31,200 for the same household, before Toronto's much larger land transfer tax.
Ottawa affordability examples
At Ottawa's 1.271% urban rate, the household above can afford about $543,400 (GDS), with $3,343 of land transfer tax after the refund and $1,199 of tax on the premium. With the same property tax in Toronto, the land transfer tax would be $6,211.
| Household income | Down payment | Maximum price | LTT after refund | Tax on premium | Cash to close |
|---|---|---|---|---|---|
| $85,000 | $35,000 | $359,800 | $0 | $1,039 | $38,739 |
| $120,000 | $60,000 | $543,400 | $3,343 | $1,199 | $67,242 |
| $160,000 | $95,000 | $741,800 | $7,311 | $1,604 | $106,615 |
| $210,000 | $150,000 | $1,000,000 | $12,475 | $1,904 | $167,079 |
Cash to close is the down payment, land transfer tax, premium tax and our planning estimates of $1,800 for legal fees, $350 for title insurance and $550 for an inspection.
First-time buyers in Ottawa
A first-time buyer in Ottawa pays no land transfer tax on a home up to about $368,333, and $4,000 less than a repeat buyer above that. Because there is no municipal tax, there is no second rebate to claim. Federal programs add to that: the FHSA ($8,000 a year, up to $40,000), the RRSP Home Buyers' Plan (up to $60,000 per person), the home buyers' amount worth $1,400 for 2026, and, on a new home, the first-time GST rebate of up to $50,000. In Ontario, the provincial part of the HST on a new home is handled under Ontario's own rebate. An insured first-time buyer can also choose a 30-year amortization. See first-time home buyer programs.
Next steps
- Check the home's assessment and whether it's in the urban or rural tax area; the property's last tax bill shows both.
- Enter it in the affordability calculator with Ottawa selected.
- Check land transfer tax and the premium tax in the closing costs calculator.
What typical homes cost in Ottawa, and the income each takes
| Home type | Typical price | Down payment | Household income needed | Cash to close |
|---|---|---|---|---|
| All homes (composite) | $623,500 | $62,350 | $138,600 | $71,387 |
| Detached (single-family) | $705,100 | $70,510 | $156,300 | $81,361 |
| Townhouse | $546,500 | $54,650 | $121,900 | $61,975 |
| Apartment | $380,800 | $38,080 | $87,000 | $41,817 |
Prices: Ottawa Real Estate Board (OREB), MLS® HPI benchmark price, September 2026 (MLS® HPI benchmarks are CREA data published by the board). Collected November 1, 2026. Typical prices, not appraisals; the income figures are our calculation.
For comparison, a household earning $120,000 with $60,000 down could afford about $543,400 here. Run your own plan for Ottawa, ON.
Run the numbers for Ottawa, ON
This calculator starts with Ottawa, ON's transfer tax and first-time relief. Open your full affordability plan set to Ottawa, ON (property tax 1.271%).
Closing costs and land transfer tax calculator
Cash you need on closing day on top of your down payment.
| Ontario land transfer tax | $9,475 |
|---|---|
| Ontario first-time homebuyer refund | −$4,000 |
| Sales tax on the CMHC premium | $1,451 |
| Legal / notary | $1,800 |
| Title insurance | $350 |
| Inspection / appraisal | $550 |
| Total | $9,626 |
Estimate, not advice. Your lawyer or notary prepares the final statement of adjustments, including property-tax and utility adjustments not shown here.
Closing costs $9,626, of which land transfer tax or fees $5,475.
Assumptions & sources
Assumptions
- Transfer tax is calculated on the purchase price (NB, PE and NS use the greater of price or assessed value).
- First-time buyer rebates assume you meet every condition (residency, occupancy, never owned).
- Legal, title insurance and inspection figures are our planning estimates; get quotes.
Sources
- Government of Ontario — Calculating land transfer tax. Checked .
- Government of Ontario — Land transfer tax refunds for first-time homebuyers. Checked .
- Government of Ontario — Retail sales tax on insurance premiums. Checked .
- City of Ottawa — What you get for your property taxes (2026, per $100,000 of assessment). Checked .
Frequently asked questions
Does Ottawa have a municipal land transfer tax?
No. Ottawa buyers pay Ontario's land transfer tax only. On a $600,000 home that is $8,475, or $4,475 for a first-time buyer who qualifies for the full refund.
What is Ottawa's property tax rate for 2026?
For an urban home, $1,271 per $100,000 of assessment, or 1.271%, including the 0.153% provincial education rate. Rural homes pay $1,004 to $1,053 per $100,000 depending on transit service.
Do first-time buyers pay land transfer tax in Ottawa?
Only above about $368,333. Ontario's first-time refund is up to $4,000, which covers the whole tax below that price, and there is no city tax to pay.
How much house can I afford in Ottawa on $120,000?
About $543,400 with $60,000 down, $450 a month of other debts, an example 4.12% rate and Ottawa's 1.271% urban property tax.
Primary sources
- Government of Ontario — Calculating land transfer tax. Checked .
- Government of Ontario — Land transfer tax refunds for first-time homebuyers. Checked .
- Government of Ontario — Retail sales tax on insurance premiums. Checked .
- City of Ottawa — What you get for your property taxes (2026, per $100,000 of assessment). Checked .
- City of Toronto — Municipal land transfer tax rates and fees (effective April 1, 2026). Checked .
- CMHC — Calculating GDS / TDS. Checked .
- OSFI — Minimum qualifying rate for uninsured mortgages (Guideline B-20). Checked .
- CMHC — Homeowner mortgage loan insurance: Purchase (eligibility). Checked .