First-Time Home Buyer in Ottawa: 2026 Mortgage Guide

Buying your first home in Ottawa comes with a lot of moving parts: the down payment, closing costs, mortgage qualification, the stress test, and government programs that can help you build the down payment. The rules have changed significantly in the last few years, so it is worth working from the current framework instead of old advice you may still see online.

How much down payment do you need in 2026?

For a home priced at $500,000 or less, the minimum down payment is 5%. For a purchase between $500,000 and less than $1.5 million, the minimum is 5% on the first $500,000 plus 10% on the portion above $500,000. At $1.5 million or more, the minimum down payment is 20%. If your down payment is below 20%, mortgage default insurance is generally required and other insurer and lender rules still apply.

As an example, on a $750,000 purchase, the minimum down payment is $50,000: $25,000 on the first $500,000 plus $25,000 on the remaining $250,000.

Can a first-time buyer get a 30-year amortization?

Yes, under the federal insured-mortgage reforms that took effect December 15, 2024, 30-year insured amortizations became available to all qualifying first-time home buyers and to all qualifying buyers of newly built homes. A longer amortization can reduce the required monthly payment, but it also means paying interest over a longer period, so it should be evaluated as part of the overall mortgage strategy rather than treated as automatically better.

Using an FHSA for your down payment

The First Home Savings Account is one of the most useful tools available to eligible first-time buyers. The annual participation room starts at $8,000 when you open your first FHSA, with a lifetime contribution limit of $40,000. Contributions are generally tax-deductible, and qualifying withdrawals used to buy a first home can be tax-free.

Using the Home Buyers’ Plan

The Home Buyers’ Plan currently allows an eligible buyer to withdraw up to $60,000 from an RRSP toward a qualifying home. The HBP and FHSA can be used for the same qualifying purchase if the conditions for each program are met. For a first HBP withdrawal made between January 1, 2026 and December 31, 2028, temporary repayment relief delays the start of the 15-year repayment period until the fifth year after the withdrawal year.

Get pre-approved before the house search gets serious

A mortgage pre-approval gives you a working budget and lets you identify potential issues before you are writing an offer. We review income, down payment, debts, credit and the likely property type. The actual property still has to be acceptable to the lender, so a pre-approval is not the same thing as final mortgage approval.

Do not forget closing costs

Your down payment is not the only cash you need. Depending on the purchase, closing costs may include legal fees, title insurance, land-transfer tax, adjustments, inspection costs, moving expenses and other property-specific items. Ontario first-time-buyer rebates may reduce some land-transfer tax when eligibility requirements are met, but the mortgage approval should still leave room for the full closing budget.

The bottom line

The first step is not choosing a five-year fixed or variable mortgage. It is understanding what you can comfortably afford, where the down payment is coming from, and which programs apply to you. Once that foundation is clear, the mortgage options become much easier to compare.

Sources reviewed: Financial Consumer Agency of Canada, Department of Finance Canada and Canada Revenue Agency. Program rules and lender policies can change. This article is general information and is not tax, financial or legal advice.