Buying your first home is one of the most exciting—and let's be honest, overwhelming—milestones you'll ever experience. If you're reading this, you've likely been dreaming about it for a while. Maybe you've been scrolling through listings late at night, picturing yourself in that sunlit kitchen or imagining your kids playing in that backyard.
But here's what often happens next: the excitement gets clouded by questions. How much do I actually need for a down payment? What's the difference between pre-approval and pre-qualification? How do I even know if I'm ready?
Here's the truth: you don't need to have all the answers right now. What you do need is a clear, step-by-step roadmap that takes you from "I think I want to buy a home" to "I just got the keys to MY home."
That's exactly what this guide is. Consider this your comprehensive roadmap to navigating the Ottawa real estate market with confidence, clarity, and—most importantly—without the stress and second-guessing that trips up so many first-time buyers.
Let's get started.
Step 1: Get Crystal Clear on Your "Why"
Before we dive into mortgages, inspections, and offers, let's start with the most important question:
Why do you want to buy a home?
This isn't a philosophical exercise—your "why" will be your north star throughout this entire process. It will guide every decision you make, from how much you're willing to stretch your budget to which neighbourhood you choose.
Maybe your "why" is:
Building equity instead of paying your landlord's mortgage
Creating a stable environment for your growing family
Having the freedom to paint the walls any colour you want (finally!)
Investing in your financial future
Planting roots in a community you love
Whatever your reason, write it down. When the process feels overwhelming—and there will be moments when it does—this is what will remind you why it's all worth it.
Step 2: Understand What You Can Truly Afford
Let's talk numbers. This is where many first-time buyers either get discouraged too early or get in over their heads. Neither has to be your story.
The Down Payment Reality
In Canada, here's what you need to know:
Minimum 5% down for homes under $500,000
5% down on the first $500,000, plus 10% on the portion above $500,000 (for homes between $500,000-$999,999)
Minimum 20% down for homes $1 million and above
Here's the thing: if you put down less than 20%, you'll need mortgage default insurance (often called CMHC insurance). This isn't a bad thing—it actually allows you to enter the market sooner with a smaller down payment. It just means you'll pay a premium that gets added to your mortgage.
Beyond the Down Payment: What Else You'll Need
This is where many first-time buyers get caught off guard. Your down payment is just the beginning. You'll also need to budget for:
Closing Costs (2-4% of the purchase price):
Legal fees
Land transfer tax (there may be rebates available for first-time buyers!)
Home inspection
Property tax adjustments
Title insurance
Moving & Immediate Costs:
Moving expenses
Potential repairs or renovations
New furniture or appliances
Utility connection fees
Ongoing Homeownership Costs:
Mortgage payments
Property taxes
Home insurance
Utilities
Maintenance and repairs (a good rule of thumb: budget 1% of your home's value annually)
Condo fees (if applicable)
The Affordability Sweet Spot
Your bank might approve you for a certain amount, but that doesn't always mean you should spend it all. A good rule of thumb: your total housing costs shouldn't exceed 35% of your gross household income.
This includes your mortgage payment, property taxes, heating costs, and 50% of condo fees (if applicable). This is called your GDS ratio (Gross Debt Service), and staying within this range helps ensure you can comfortably afford your home—and still enjoy your life.
Step 3: Get Your Finances in Order
Now that you know what you can afford, it's time to make yourself look as attractive as possible to lenders.
Boost Your Credit Score
Your credit score directly impacts your mortgage rate. Even a fraction of a percentage point difference can save you thousands over the life of your mortgage.
Quick wins to improve your credit:
Pay all bills on time (set up automatic payments if needed)
Keep credit card balances below 30% of your limit
Don't close old credit cards (length of credit history matters)
Avoid applying for new credit in the months before mortgage shopping
Save Aggressively
I know—easier said than done. But here's the thing: every dollar you save now is leverage later. It could mean:
A lower mortgage payment
Avoiding mortgage insurance
Having a cushion for unexpected costs
More negotiating power (sellers love buyers with substantial down payments)
Savings strategies that work:
Automate transfers to a separate savings account on payday
Take advantage of the First Home Savings Account (FHSA) for tax benefits
Consider the Home Buyers' Plan (HBP) to borrow from your RRSP
Track your spending and cut unnecessary subscriptions
Direct any windfalls (tax returns, bonuses) straight to your down payment fund
Gather Your Financial Documents
Lenders will want to see:
Proof of income (pay stubs, T4s, tax returns if self-employed)
Proof of down payment (bank statements showing you've saved it)
Employment verification
List of assets and liabilities
Credit report
Start organizing these now—you'll thank yourself later.
Step 4: Get Pre-Approved for a Mortgage
Here's where things get real—and exciting.
Pre-Qualification vs. Pre-Approval: Know the Difference
Pre-Qualification is a rough estimate based on self-reported information. It's quick, but it doesn't hold much weight.
Pre-Approval is the real deal. A lender verifies your financial information and commits to lending you a specific amount (assuming nothing changes). This is what you need before you start seriously house hunting.
Why Pre-Approval Is Your Secret Weapon
Getting pre-approved before you start looking isn't just smart—it's essential. Here's why:
You know your true budget (no falling in love with homes you can't afford)
Sellers take you seriously (especially in competitive markets)
You can move fast when you find "the one"
You lock in a rate (usually for 90-120 days)
You gain negotiating power (you're a sure thing, not a maybe)
Shop Around for the Best Rate
Don't just go with the first lender you talk to. Your bank is a good starting point, but also consider:
Mortgage brokers (they shop multiple lenders for you)
Credit unions
Online lenders
Even a 0.25% difference in your rate can save you thousands over a 25-year mortgage.
Step 5: Assemble Your Dream Team
Here's a truth that might surprise you: buying a home is a team sport.
Yes, you're the captain—it's your money, your future, your decision. But the best buyers surround themselves with experienced professionals who have their back.
Your Essential Team Members:
1. Your Real Estate Agent
This is not the place to go it alone or work with your cousin's friend who "just got their license." You want someone who:
Knows the Ottawa market inside and out
Has a proven track record with buyers
Will educate you, not pressure you
Has access to off-market opportunities
Is a skilled negotiator (this alone can save you tens of thousands)
And here's something many first-time buyers don't realize: in most cases, working with a buyer's agent costs you nothing. The seller typically pays the commission. You get expert representation at no direct cost to you.
2. Your Mortgage Broker or Lender
We covered this in Step 4, but it bears repeating: a good mortgage professional will save you money and stress.
3. Your Real Estate Lawyer
You'll need a lawyer to handle the legal aspects of your purchase, including:
Reviewing your Agreement of Purchase and Sale
Conducting title searches
Handling the transfer of funds
Ensuring all legal requirements are met
Choose someone who specializes in real estate—this is not the time for a generalist.
4. Your Home Inspector
Never, ever skip the home inspection. A few hundred dollars now can save you from a money pit later. A thorough inspector will examine:
The foundation and structure
Roof and exterior
Plumbing and electrical systems
Heating and cooling
Signs of water damage or mold
They'll give you a detailed report that can inform your negotiation or help you walk away from a bad deal.
Step 6: Define Your Must-Haves vs. Nice-to-Haves
This is where the dream meets reality—and that's okay.
Unless you have an unlimited budget (and let's be honest, who does?), you're going to need to make some trade-offs. The key is knowing which ones you can live with.
Create Your Priority List
Sit down with anyone who's buying with you and create three lists:
Must-Haves (Non-Negotiable):
Example: 3 bedrooms, close to transit, within budget
Nice-to-Haves (Willing to Compromise):
Example: Updated kitchen, garage, large backyard
Deal-Breakers (Absolute No's):
Example: No basement apartments, not on a busy street, no major structural issues
Consider Your Lifestyle, Not Just Your Wishlist
Think about:
Commute: How much time are you willing to spend getting to work?
Walkability: Do you want to be near shops, restaurants, parks?
Schools: Even if you don't have kids now, good school districts often hold value better
Future resale: While this is your first home, it probably won't be your forever home
Noise levels: Are you okay with urban density, or do you need quiet?
The 80% Rule
If a home checks 80% of your boxes, seriously consider it. The perfect home doesn't exist, and trying to find it might mean you miss out on something great.
Step 7: Start Your Home Search (The Smart Way)
Now comes the fun part: actually looking at homes!
Where to Search
MLS Listings: Your agent will set you up with an automated search based on your criteria
Coming Soon Listings: Your agent may have access to properties before they hit the public market
Open Houses: Great for getting a feel for neighbourhoods and what's available
Neighbourhood Drives: Sometimes the best finds come from simply exploring areas you love
Red Flags to Watch For
As you tour homes, keep an eye out for:
Signs of water damage (stains, musty smells, warped floors)
Cracks in the foundation
Outdated electrical (knob and tube wiring, too few outlets)
Evidence of DIY repairs that might not be up to code
Neighbourhood concerns (busy roads, lack of parking, etc.)
Take Notes and Photos
After viewing five or six homes, they all start to blur together. Take photos (with your agent's permission) and detailed notes about each property. What did you love? What gave you pause?
Don't Fall in Love Too Quickly
This is hard advice to follow, but try to keep some emotional distance until you're in contract. The right home will check your boxes AND pass inspections AND fit your budget. All three need to align.
Step 8: Make a Strong Offer
You found it. The one that feels right. Your heart races a little when you walk through the door. Now what?
Work With Your Agent on Strategy
Your agent will help you craft an offer based on:
Comparable sales (what similar homes have sold for recently)
How long the property has been on market
Current market conditions (buyer's market vs. seller's market)
Your budget and comfort level
The seller's situation (if known)
Understanding Conditions
Your offer will likely include conditions (also called "subjects") such as:
Financing Condition: The sale is conditional on you securing mortgage approval
Home Inspection Condition: Allows you to hire an inspector and renegotiate or walk away based on findings
Status Certificate Review (for condos): Time to review the building's financial health and rules
These conditions protect you. They give you an exit if something significant comes to light.
The Deposit
When you make an offer, you'll typically include a deposit (usually 5% of the purchase price, but this can vary). This shows the seller you're serious. If the deal goes through, this deposit goes toward your down payment. If you back out for reasons not covered by your conditions, you could lose this deposit.
Multiple Offer Situations
Ottawa's market can be competitive. If there are multiple offers, your agent will guide you on how to make yours stand out—whether that's a higher price, fewer conditions, a flexible closing date, or a personal letter to the sellers.
Remember: the goal isn't to "win" at all costs. The goal is to get a great home at a fair price.
Step 9: Navigate the Inspection and Condition Period
Your offer was accepted—congratulations! But you're not quite done yet.
The Home Inspection
Book your inspector immediately (within your condition timeline). Be there during the inspection. Ask questions. No question is too small.
Your inspector will provide a detailed report. Not every issue is a deal-breaker. Focus on:
Major structural issues
Safety hazards
Expensive systems nearing end of life (roof, furnace, etc.)
Your Options After the Inspection
Based on the report, you can:
Proceed as planned (if everything looks good)
Renegotiate (ask the seller to fix issues or reduce the price)
Walk away (if your inspection condition allows it and the issues are too severe)
Finalize Your Financing
Use this time to finalize your mortgage. Provide any additional documents your lender requests and lock in your rate.
Remove Conditions
Once you're satisfied with the inspection and your financing is confirmed, you'll "waive" or remove your conditions. At this point, the sale becomes firm and legally binding.
Step 10: Prepare for Closing
The finish line is in sight!
Final Walk-Through
A few days before closing, you'll do a final walk-through to ensure:
The property is in the same condition as when you made your offer
Any agreed-upon repairs were completed
All items included in the sale are still there
No new damage has occurred
Work With Your Lawyer
Your lawyer will:
Complete title searches
Calculate final closing costs
Arrange for the transfer of funds
Register the property in your name
You'll meet with them to sign documents and provide any remaining funds (your down payment minus your deposit, plus closing costs).
Closing Day
On closing day, funds are transferred, documents are registered, and ownership officially changes hands. By the end of the day, you'll have keys to your new home.
Step 11: Move In and Celebrate!
You did it. You're a homeowner.
First Week To-Do's:
Change the locks (you never know who has a copy of the old keys)
Set up utilities in your name
Document the condition of everything (photos and videos for insurance purposes)
Locate your main water shut-off and electrical panel
Start a home maintenance binder
Meet your neighbours
Update your address with banks, government agencies, employers, etc.
Set Yourself Up for Success
Create an emergency home maintenance fund
Keep up with seasonal maintenance (furnace filters, gutter cleaning, etc.)
Get to know your home—how it sounds, feels, and operates normally
Enjoy it! You earned this.
Your First Home Is Waiting—And You're Ready for It
If you've made it this far, you're already ahead of most first-time buyers. You have the knowledge, the roadmap, and the clarity you need to move forward with confidence.
Yes, buying a home is a big decision. But it's also an incredibly rewarding one. It's the foundation (literally) for your future—a place to build memories, grow equity, and create the life you've been envisioning.
You don't have to navigate this journey alone. The right guidance makes all the difference between a stressful experience and an empowering one.
About the Author
Ruby Xue is the Broker of Record & Owner of KW ICON Realty and Team Leader of the Ruby Xue Real Estate Team, serving buyers and sellers across Ottawa. Since launching her real estate career in 2014, Ruby has been recognized as one of Ottawa's top-performing realtors, earning "Rookie of the Year" in her first year and building a reputation for exceptional client service and strategic expertise.
Originally from China, Ruby came to Canada in 2002 as an international student at Carleton University. Her journey from ambitious newcomer to award-winning real estate leader reflects her core belief: with the right support, vision, and commitment, anyone can achieve extraordinary things.
In 2025, Ruby founded KW ICON Realty with a powerful mission—to create an environment where real estate agents can thrive with world-class training, proven systems, and a culture of collaboration. Her brokerage's success is measured by the success of the agents and clients it serves.
Ruby's approach to real estate is rooted in empowerment, not pressure. She believes that buying or selling a home should be a strategic, informed decision—and that every client deserves a bespoke experience backed by data, expertise, and unwavering support.
When she's not helping clients navigate Ottawa's real estate market, Ruby is a devoted mom to two daughters, a wife, and a passionate traveler and opera enthusiast. Her guiding principle in life and business is simple: "God, Family, then Business."
With over 100 Google Reviews and a track record of success across Ottawa's most sought-after neighbourhoods—from Orléans to The Glebe, Kanata to Westboro—Ruby and her team are committed to making your real estate journey as seamless and rewarding as possible.
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