The 5 Best Steps For Every First-Time Home Buyer in Ottawa
Start your search with confidence
Buying your first home is exciting… and a little overwhelming. Between down payments, mortgage rules, offer strategies, and lawyer stuff, it can feel like you need a degree to make a “good” decision.
The good news: first-time buyers don’t need to know everything — you just need to do the right things in the right order. Here are the 5 best steps to set yourself up for a smooth first purchase in Ottawa.
Step 1: Get financially clear (and use the FHSA to your advantage)
Before you book showings or fall in love with a listing, spend a bit of time getting your numbers organized — and make sure you’re using the tools Ottawa buyers have available.
Start with your “big 3” numbers
Down payment: how much you have today, and how much you can realistically add over the next 3–12 months
Monthly comfort payment: what feels good for your life (not just what you can technically qualify for)
Closing costs: what you’ll need on top of the down payment (legal fees, land transfer tax, title insurance, moving costs, adjustments, etc.)
A lot of first-time buyers are surprised by closing costs — so planning for them early keeps you from feeling cash-tight after you get the keys.
The FHSA: the first-time buyer “cheat code” (in a good way)
If you’re a first-time home buyer in Canada, the FHSA (First Home Savings Account) is one of the best ways to build your down payment because it combines two huge benefits:
Contributions are tax-deductible (like an RRSP)
Withdrawals for a qualifying home purchase are tax-free (like a TFSA)
That’s why people call it “the best of both worlds.”
Key FHSA basics (in plain English)
You can contribute up to $8,000 per year
The lifetime contribution limit is $40,000
If you don’t use your full $8,000 room in a year, you can carry forward unused room to a future year (up to the limit)
You can invest inside it (savings, stocks, GICs, ETFs, etc.), depending on your risk tolerance and timeline
If you don’t end up buying a property, you can generally transfer FHSA funds into an RRSP/RRIF (subject to rules), without losing the tax-deferred advantage
When the FHSA matters most
If you’re planning to buy in 1–5 years: it’s a no-brainer to consider opening one early, even if you start small.
If you’re buying soon (0–12 months): the FHSA can still help, especially if you’re using a safe option like a high-interest savings FHSA or a short-term GIC — but you’ll want to avoid investments that could swing downward right before you purchase.
“How should I use it?” (simple strategy)
Buying within 12 months: keep FHSA funds low-risk (cash / HISA / short GIC)
Buying in 2–5 years: you may choose a conservative-to-balanced approach depending on comfort
Buying with a partner: if you’re both eligible, you can each use an FHSA, effectively doubling the advantage (40k + 40k = 80k!)
Quick combo tip: FHSA + RRSP Home Buyers’ Plan
Many first-time buyers stack tools:
FHSA for tax-deductible savings + tax-free withdrawal
RRSP Home Buyers’ Plan (HBP) if they’ve also saved in RRSPs (and are comfortable repaying it over time)
Your mortgage professional can help you decide what mix makes sense based on income, savings, and timeline.
Wrap Step 1 with a simple checklist
Before you start shopping, try to have:
✅ A down payment plan (and where it’s sitting — FHSA/TFSA/savings)
✅ A realistic monthly payment target
✅ A closing cost buffer
✅ A quick call booked with a mortgage pro to confirm what you can do comfortably
Step 2: Get pre-approved (and understand what it actually means)
A pre-approval is your buying foundation. It helps you:
Lock in a rate (sometimes)
Set a realistic price range
Move quickly when the right home shows up
Look credible to sellers
But here’s the key: a pre-approval is not a guarantee, and it’s not always your best budget. Your lender can tell you what you qualify for — you decide what you want to pay and still live your life.
Ask your mortgage broker/lender these questions:
What’s my max purchase price and max monthly payment?
What rate and term are we using to calculate this?
What’s the estimated payment including property taxes and heat?
If rates change, how does that affect approval?
Step 3: Build your “must-have vs nice-to-have” list (and keep it honest)
This is where buyers save time, money, and stress.
Create three categories:
Must-haves (non-negotiable): number of bedrooms, commute, school zone, parking, etc.
Strong preferences: finished basement, yard size, modern kitchen, etc.
Nice-to-haves: walk-in closet, south-facing yard, that dreamy front porch
Then pressure-test your list using your budget. In Ottawa, the homes that “check every box” usually come with a higher price tag — or a trade-off (location, condition, size).
Best tip: Pick your top 3 non-negotiables and let everything else be flexible. That’s how first-time buyers win without buyer’s remorse.
Step 4: Understand the true cost of ownership (not just the mortgage payment)
This is the step that separates confident buyers from stressed buyers.
Beyond your mortgage, plan for:
Property taxes
Utilities (heat/hydro/water)
Home insurance
Maintenance and repairs (even condos have ongoing costs)
Condo fees (if applicable)
Commuting/parking changes
Furniture and “first home” purchases (it adds up fast)
Rule of thumb: If you buy a freehold home, budgeting 0.5-1% of the home value per year for maintenance is a decent starting point (it won’t be perfect, but it keeps you safe).
Also: decide up front how you feel about older homes vs newer builds. Older homes can be charming and in great locations, but you’ll want to pay attention to big-ticket items like roof, windows, foundation, electrical, plumbing, and insulation.
Step 5: Build a smart offer strategy (with protections that fit your comfort level)
In Ottawa, the offer process can move fast. The goal is to be ready before you find “the one.”
That means knowing:
Your ceiling price (the line you won’t cross)
Your ideal closing date range
What conditions you may need (financing, home inspection, insurance, status certificate for condos)
Your deposit amount and timing
How you’ll handle a multiple-offer situation
First-time buyer note: Conditions are protections — not weaknesses. Sometimes buyers choose to go firm depending on the situation, but you should never feel pressured into a risk level you can’t sleep with.
A good realtor + mortgage pro + lawyer team will help you move quickly without rushing your decision.
Bonus: First-Time Home Buyer incentives in Ontario (quick overview)
Depending on your situation, you may qualify for:
First-Time Home Buyer Incentive/credits (federal programs and tax credits may apply)
RRSP Home Buyers’ Plan (HBP) (use RRSP funds toward down payment, then repay over time)
Land Transfer Tax refunds (first-time buyers may get a refund on the Ontario land transfer tax)
These programs can help, but they don’t replace budgeting and pre-approval — think of them as the cherry on top.
Final thought
Your first home doesn’t have to be perfect — it just has to be a great step forward. The buyers who have the best experience are the ones who get their numbers straight, build a smart team early, and stay clear on what matters most.