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Closing costs in Ottawa

See how much you might have to pay in closing costs when you buy a home in Canada's capital.

The average closing cost in Ottawa is roughly $7,500 after taxes or approximately 1.5-2% of the final home sale price.

Closing cost stats in Ottawa

  • Average home sale price: $425,000-$450,000
  • Average total closing cost: $7,500*
  • Expected closing cost range: $6,375-$9,000*
  • Percentage of closing cost to home sale price: 1.5-2%

Remember, these averages are based on sample data. Your closing costs may vary based on your lender, the size of your loan and whether you’re paying in cash.

Compare mortgage lenders in Ontario

1 - 4 of 4
Name Product Interest Rate (APR) Loan Term Min. credit score Provincial availability
CASHBACK
nesto Mortgages
4.54%
5 Year Fixed Rate
680
All of Canada
Get 1% cashback on your mortgage value (up to a total cashback of $9,250).
BMO Mortgages
6.49%
5 Year Fixed Rate
Varies
All of Canada
Lock in a rate for up to 130 days - the longest of any major bank in Canada.
Meridian Mortgages
6.29%
5 Year Fixed Closed Rate
600
ON
Meridian is a credit union that provides Ontario residents featured rates and the option to defer one payment every 12 months without penalty.
Homewise Mortgages
Varies
Varies
600
Not available in Quebec
Homewise's personal advisors can get you mortgage rates from over 30 banks and lenders.
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How much does tax affect the closing cost?

Buyers in Ottawa pay a Land Transfer Tax (LTT) based on a sliding scale relative to the property’s price. This LTT is a provincial tax and can drive up the closing costs depending on how much you purchase the property for.

This is the LTT sliding scale tax rate:

  • $0-$55,000: 0.5%
  • $55,000-$250,000: 1%
  • $250,000-$400,000: 1.5%
  • $400,000-$2,000,000: 2%
  • $2,000,000+: 2.5%

For example, on the sale of a new property valued at $500,000, you would be charged 0.5% on the first $55,000, 1% on the next $195,000, 1.5% on the next $150,000 and 2% on the remaining $100,000 for a combined total of $7,225 in land transfer taxes in Ottawa.

*Harmonized Sales Tax (HST)

Ottawa has a Harmonized Sales Tax (HST), which is essentially a combination of the GST (5%) and PST (8%). The HST rate is 13%, but it is not charged in all circumstances. In Ottawa, the HST is only payable on the sale of brand new properties or properties that have been substantially renovated.

Is there an HST rebate?

Yes, there is a rebate available to homebuyers in Ottawa. If you purchase a brand new home with a sale price of $350,000 or less, you are eligible to receive a 75% rebate on the PST portion (8%) of the HST and a 36% rebate on the GST portion (5%) of the HST.

For example, if you bought a brand new house valued at $350,000 in Ottawa, you would need to pay a total of $45,500 in HST (13%). The HST you would need to pay can be broken down to $28,000 for the PST (8%) and $17,500 for the GST (5%). On the PST portion of the HST, you’re eligible for a rebate of $21,000 (75% of $28,000).

On the GST portion of the HST, you’re eligible for a rebate of $6,300. Combine that with the PST rebate of $21,000 and you should earn back a rebate of $27,300 on the $350,000 property.

How do closing costs in Ottawa compare with the rest of Canada?

The closing costs for buying a home in Ottawa are average compared with other big cities in Canada. The land transfer tax is a standard tax applied in nearly every province in Canada and it is applied in Ottawa. Since Ottawa is in Ontario, it falls under charging an HST on the sale of brand new properties and this can significantly drive up the closing costs.

Bottom line

Closing costs are inevitable when you’re buying a property. The exact amount will vary depending on what the final sale price is on your property in Ottawa. It is safe to budget approximately 1.5-2% of the final home sale price for closing costs as most of it will be going to the LTT. In cases where you buy a brand new property, you will have to pay HST and this can raise your closing costs to as high as 14-15% (not taking into account the rebate).

Want to learn more about mortgages? Head to our guide here.

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