Shopping for a seven-figure home in the Glebe or Golden Triangle and wondering how to finance it smartly? You are not alone. Prices sit in the low to mid seven figures for many homes here, and recent federal changes opened up new mortgage options below certain price points. In this guide, you will learn what changed, how lenders qualify you, what to budget in Ottawa, and practical strategies that fit older or heritage homes in the neighbourhood. Let’s dive in.
The Glebe price reality
The Glebe and the Golden Triangle offer a mix of heritage homes, updated semis, and boutique condos close to the Rideau Canal and Bank Street. Recent neighbourhood reports show many sales in the low to mid seven figures, though month-to-month swings are common. That price band brings unique financing considerations, including appraisals, inspections tailored to older homes, and renovation planning baked into your budget.
New insured-mortgage rules up to $1.5M
The federal government increased the maximum purchase price eligible for government-backed mortgage insurance to 1.5 million dollars. That change, effective December 15, 2024, allows qualifying buyers up to 1.5 million dollars to use insured mortgages with the standard tiered minimum down payment schedule. Buyers above 1.5 million dollars cannot use insured financing and typically need conventional terms with larger down payments. You can review the reform details in the Department of Finance update on the mortgage changes here.
Minimum down payment and premiums
For insured mortgages, the minimum down payment is 5 percent on the first 500,000 dollars and 10 percent on the portion from 500,000 to 1.5 million dollars. Premiums for mortgage default insurance are added to your mortgage and vary with your loan-to-value, typically from under 1 percent to about 4 percent at very high LTVs. In Ontario, provincial sales tax applies to the insurance premium. For a deeper look at how premiums work and how they affect payments, see this overview of insured mortgage costs from Ratehub.
Example at 1.2 million dollars: Minimum down payment would be 25,000 dollars on the first 500,000 dollars plus 70,000 dollars on the remaining 700,000 dollars, for a total of 95,000 dollars. The insurance premium would then be calculated on the base mortgage amount according to the insurer’s rate for your LTV, and PST would apply to the premium in Ontario.
Amortization options
Insured mortgages have traditionally been capped at 25 years, with new targeted eligibility for 30-year insured amortizations in specific cases such as certain first-time buyers and new builds. Uninsured conventional mortgages often allow up to 30 years, subject to lender policies. Review eligibility details in the federal reforms summary here.
Qualifying basics lenders use
All federally regulated lenders apply the mortgage stress test. You must qualify at the greater of your contract rate plus 2 percentage points or the published floor, recently 5.25 percent. This reduces maximum borrowing compared with simple payment math. Read OSFI’s minimum qualifying rate guidance here.
Lenders also weigh income documentation, credit score and history, and debt ratios. For uninsured mortgages, regulators set portfolio limits on how much a lender can issue above 4.5 times gross income, which can tighten approvals at large mortgage sizes. See OSFI’s loan-to-income framework here.
Appraisals are common for higher-value or uninsured loans. A lender-ordered appraisal can affect your approved loan if the value comes in lower than expected. Here is a practical explainer on what appraisals involve from a mortgage industry source here.
Financing above 1.5 million dollars
Once a purchase exceeds 1.5 million dollars, mortgage insurance is not available. You will typically need a down payment of 20 percent or more and will be underwritten on conventional terms. Lenders may apply more conservative income documentation, amortization limits, and appraisal requirements. If your income is non-standard or you are self-employed, expect extra documentation and potentially different pricing.
Ottawa taxes and closing costs
Understanding closing-day cash needs is crucial, especially at seven figures.
Land Transfer Tax in Ontario
Ottawa buyers pay only the provincial Land Transfer Tax. Rates are tiered: 0.5 percent up to 55,000 dollars, 1.0 percent from 55,000 to 250,000 dollars, 1.5 percent from 250,000 to 400,000 dollars, 2.0 percent from 400,000 to 2,000,000 dollars, and 2.5 percent above 2,000,000 dollars. First-time buyers who qualify can receive a refund up to 4,000 dollars. Check the official calculator and rules on the Ontario site here.
Example at 1.2 million dollars: Estimated LTT is 20,475 dollars. A qualifying first-time buyer could reduce this by up to 4,000 dollars.
Property taxes in the City of Ottawa
Property taxes are based on MPAC assessment times the municipal rate plus the education portion. The combined residential rate has recently been around the 1.1 to 1.2 percent range, subject to annual budget decisions. Learn how Ottawa calculates and bills property taxes here.
Other common closing costs
Budget for legal fees and disbursements, title insurance, inspections, an appraisal if required, and adjustments for taxes and condo fees if applicable. If you use insured financing, remember PST applies to the insurance premium. A local real estate lawyer outlines typical closing cost items for Ottawa purchases here.
Smart strategies for Glebe buyers
- Compare insured versus conventional. If you are purchasing at 1.5 million dollars or below and qualify, insured financing can lower your upfront cash need, though you will pay an insurance premium. Above 1.5 million dollars, plan for 20 percent down or more and potentially stricter underwriting.
- Plan for renovations. Many Glebe homes are older or have heritage elements. Budget for inspections and a renovation reserve. Lenders may want proof the property is insurable and that major work is well scoped.
- Bridge or renovate with the right product. If you are buying before selling or renovating shortly after closing, ask about bridge loans, purchase-plus-improvements, or a readvanceable mortgage with HELOC functionality. Review HELOC pros and cons from the Financial Consumer Agency of Canada here.
- Prepare if self-employed. Gather notices of assessment, accountant-prepared financials, and bank statements early. Give your lender or broker time to underwrite non-standard income.
Pre-offer financing checklist
- Get a true pre-approval. Confirm your maximum purchase price after the stress test and verify whether insured financing is available for your target price point. OSFI’s stress-test overview is a helpful reference here.
- Confirm your down payment source. Line up savings, gifts with proper letters, and any RRSP programs if applicable. Decide whether to capitalize the insurance premium if using insured financing.
- Budget all closing costs. Use Ontario’s LTT calculator and plan for legal, title insurance, inspections, appraisal, adjustments, and PST on the insurance premium if applicable. Start with the province’s LTT guide here.
- Order inspections early. For older homes, consider electrical, roof, drainage, foundation, and any specialized assessments if heritage features are involved.
Ready to move in the Glebe?
You deserve a financing plan that matches your goals, whether you are buying a classic brick home near the Canal or a modern infill. If you want a clear strategy, neighbourhood insight, and a seamless experience from offer to keys, reach out to The Zak Green Team. We will help you compare options, pressure-test the budget, and secure the right home with confidence.
FAQs
Do I still need 20 percent down to buy in the Glebe?
- Not always. If your purchase price is 1.5 million dollars or less and you meet insured-mortgage criteria, you can use the 5 percent and 10 percent tiered schedule. Above 1.5 million dollars, insured financing is not available and 20 percent or more down is typical, per federal changes detailed here.
How does the mortgage stress test affect my buying power in Ottawa?
- Lenders must qualify you at the higher of your contract rate plus 2 percentage points or the 5.25 percent floor, which usually lowers the maximum mortgage compared with simple math. See OSFI’s guidance here.
What is the Land Transfer Tax on a 1.2 million dollar Ottawa purchase?
- Approximately 20,475 dollars based on Ontario’s tiered formula, with a potential first-time buyer refund up to 4,000 dollars if you qualify. Verify your exact amount using Ontario’s official guidance here.
Are there extra municipal land transfer taxes in Ottawa?
- No. Ottawa buyers pay only the provincial Land Transfer Tax. Toronto is the Ontario city with a separate municipal LTT, as confirmed by the province’s LTT rules here.
Do heritage or older Glebe homes change financing or insurance?
- They can. Lenders may require proof the property is insurable and may scrutinize major renovations. Expect tailored inspections and possibly higher insurance premiums, with appraisals common on higher-value or uninsured loans. An industry overview of appraisals is available here.
Can I use a HELOC for renovations after closing in the Glebe?
- Yes. Many buyers use readvanceable mortgages or HELOCs to fund improvements, but these carry variable rates and require disciplined cashflow planning. Review consumer guidance from FCAC here.
