Ottawa Mortgage FAQ: Answers to Common Questions
Quick, plain-English answers to the most common questions from Ottawa homebuyers, homeowners and people renewing a mortgage. Follow the links for deeper guides.
Buying a home
How much do I need to buy a house in Ottawa?
You need a down payment (at least 5% on the first $500,000 of the price) plus closing costs, commonly 1.5% to 4% of the price. See the first-time buyer guide.
How much mortgage can I afford in Ottawa?
Lenders look at your income, debts, credit and down payment, and test you at a higher qualifying rate. Try the mortgage calculator and ask a broker for an exact figure.
What is the mortgage stress test?
A rule that requires you to qualify at the greater of your contract rate plus 2 percentage points or 5.25%, to make sure you could handle higher rates.
Do I need mortgage default insurance?
Yes, if your down payment is under 20%. The premium is a percentage of the mortgage, usually added to it. It protects the lender, not you.
Is there a land transfer tax in Ottawa?
Ontario charges land transfer tax on all purchases. Ottawa has no municipal land transfer tax. See the land transfer tax calculator.
Rates and lenders
What is the current mortgage rate in Ottawa?
Rates change often and differ by lender, term, mortgage type and borrower. See our rates guide and ask a licensed professional for today’s quote.
Should I get a fixed or variable rate?
Fixed gives payment certainty. Variable can lower your penalty if you break the mortgage early, but your rate or payment can change. Choose based on your budget and comfort with risk.
Is a mortgage broker better than a bank?
A broker can compare many lenders. A bank offers its own products only. Getting a quote from both is a good way to compare. See the broker guide.
How do I know a mortgage broker is licensed?
Check FSRA’s public register. In Ontario, mortgage brokers, agents and brokerages must be licensed.
Renewing and refinancing
When should I start shopping for my renewal?
About 120 days before your maturity date. See the renewal guide.
How much can I borrow when refinancing?
Up to 80% of your home’s appraised value, minus your existing balance, subject to qualification. See the refinance guide.
What is a prepayment penalty?
A fee for paying off a mortgage before its term ends. Variable mortgages usually charge three months of interest. Fixed mortgages charge the greater of three months of interest or the interest rate differential.
About Ottawa Mortgages
Are you a mortgage broker?
No. We are an independent information and referral service. We are not a lender or brokerage. Read our disclosure.
Does it cost anything to use your service?
No. Our guides and tools are free. If you are connected with a licensed professional, ask them to explain any fees before you proceed.
Ready to compare Ottawa mortgage options?
Answer a few quick questions and we will connect you with a licensed Ontario mortgage professional. It is free to use and there is no obligation.
Get matched nowImportant: Ottawa Mortgages is an independent information and referral service. We are not a lender, mortgage broker or mortgage brokerage, and we do not give mortgage advice or make credit decisions. If you ask to be connected, your details may be shared with a licensed Ontario mortgage professional, who may compensate us. Rates, rules and eligibility change often. Confirm details with a licensed professional and official sources, and check any Ontario mortgage broker’s licence with FSRA. Read our full disclosure.