Introduction
Buying a home in Ottawa is one of life’s biggest milestones — and biggest financial commitments. Between saving for a down payment and securing mortgage approval, it’s easy to assume you’ve planned for everything.
But here’s the truth: many Ottawa homebuyers underestimate the real cost of homeownership.
Beyond the purchase price, there are dozens of extra expenses — some expected, others surprising — that can catch you off guard if you’re not ready. In this guide, we’ll cover the top 10 hidden costs that homebuyers in Ottawa often forget to budget for, plus smart tips to help you plan ahead and protect your wallet.
1. Land Transfer Tax (LTT)
The Ontario Land Transfer Tax is one of the biggest upfront costs after your down payment. It’s calculated as a percentage of your home’s purchase price and must be paid on closing day.
For example, a $700,000 home in Ottawa could cost you over $10,000 in LTT.
✅ Tip: First-time buyers may qualify for a rebate up to $4,000. Be sure to confirm eligibility with your lawyer before closing.
2. Legal Fees and Title Insurance
Every home purchase in Ottawa requires a real estate lawyer to review the agreement, handle closing, and transfer ownership. Expect to pay between $1,500 and $2,500 for these services.
Most buyers also add title insurance, which protects against issues like fraud, unpaid liens, or survey errors. That’s another $300–$500 — but it’s a small price for peace of mind.
✅ Tip: Always ask your lawyer for a written quote that includes disbursements (courier fees, document searches, etc.) to avoid surprises.
3. Home Inspection Costs
A professional home inspection is optional but strongly recommended, even in Ottawa’s competitive market. It can reveal issues like foundation cracks, roof damage, or plumbing problems before you commit.
Most inspections cost $400–$700, depending on the home’s size and age.
✅ Tip: Don’t skip the inspection, even on newer homes — hidden issues can lead to costly repairs later.
4. Property Taxes
Ottawa’s property tax rates are relatively moderate compared to other Canadian cities, but they still add up.
In 2025, the average homeowner pays between $4,000 and $6,000 per year, depending on property value and neighborhood.
✅ Tip: Check the City of Ottawa’s property tax estimator before making an offer so you can include it in your monthly budget.
5. Utility Setup and Connection Fees
Once you move in, you’ll need to connect hydro, gas, water, internet, and waste services. Many providers charge activation or setup fees ranging from $50–$200 each.
✅ Tip: Contact utility providers at least two weeks before closing to avoid service delays — especially during busy moving months.
6. Moving Costs
Whether you hire professionals or rent a truck, moving costs can easily reach $1,000–$3,000, depending on distance and amount of furniture.
And don’t forget packing supplies, cleaning services, and storage units, if needed.
✅ Tip: Compare quotes from local movers early, and ask about weekday or off-peak discounts.
7. Immediate Repairs or Upgrades
Even if your new home seems move-in ready, expect at least a few post-purchase fixes. That could mean new locks, painting, replacing outdated light fixtures, or upgrading appliances.
Budget at least 1% of your purchase price for initial updates — that’s around $5,000–$8,000 for most Ottawa homes.
✅ Tip: Ask the seller for maintenance records to anticipate near-term expenses (like an aging roof or furnace).
8. Home Insurance
Mortgage lenders require you to have home insurance in place before closing. Premiums vary widely, but most Ottawa homeowners pay $1,000–$1,800 per year, depending on coverage and location.
✅ Tip: Bundle your home and auto insurance for potential discounts of up to 15%.
9. Condo or HOA Fees (If Applicable)
If you’re buying a condo or a townhome with a shared community, you’ll likely pay monthly maintenance or HOA fees. These can range from $250–$800 per month, depending on amenities and building age.
✅ Tip: Always review the status certificate for condos before purchasing — it shows the financial health of the building and upcoming expenses.
10. Ongoing Maintenance and Emergency Funds
Owning a home means ongoing upkeep — from landscaping to furnace filters to snow removal. Experts recommend setting aside 1–3% of your home’s value each year for maintenance and unexpected repairs.
That’s around $5,000–$15,000 annually for most properties in Ottawa.
✅ Tip: Create a home maintenance fund and automate small monthly contributions to stay prepared.
Bonus: Furniture and Décor Costs
While not a “hidden fee,” furnishing your new home can quickly become one of the most expensive parts of moving in. Even modest furniture upgrades — a sofa, bed, dining set, curtains — can easily reach $5,000–$10,000.
✅ Tip: Prioritize essentials first. You can decorate and upgrade gradually as your budget allows.
How to Plan Ahead for These Hidden Costs
Here’s a quick summary of how to stay financially prepared:
Add 3–5% to your budget beyond your down payment for closing costs.
Keep a $5,000–$10,000 cushion for post-closing expenses.
Review all fees with your real estate agent and lawyer before signing.
Use online calculators for taxes, utilities, and insurance to estimate monthly expenses.
Avoid maxing out your mortgage approval — leave breathing room for the extras.
FAQs About Hidden Homebuying Costs in Ottawa
1. Can I include closing costs in my mortgage?
In most cases, no. You’ll need to pay them separately on closing day.
2. Are land transfer taxes the same across Ontario?
Yes, except for Toronto — it has an extra municipal tax. Ottawa buyers pay only the provincial one.
3. Do new-build homes have extra costs?
Yes. Expect development fees, HST, and potential upgrades not included in the base price.
4. How can I reduce moving costs?
Book early, pack yourself, and move mid-week or mid-month for better rates.
5. How much should I save before buying?
Besides your down payment, aim to have at least 5% of the home’s price saved for closing and moving costs.
Conclusion
Buying a home in Ottawa is an exciting step — but it’s also a complex financial journey.
By planning for these hidden costs upfront, you’ll avoid last-minute stress and ensure your new home fits both your dreams and your budget.
From taxes and legal fees to small but sneaky expenses like utilities and furniture, knowing what’s coming helps you make smarter, more confident decisions in 2025’s real estate market.
