Mortgages in Centretown
The downtown neighbourhood south of Parliament Hill, with condos, older brick homes split into units and many renters and investors. Here’s what buying there costs and which rules apply, before you compare lenders with one licensed mortgage professional.
Short answer
Centretown is in Ottawa, so Ottawa’s tax rates and Ontario’s rules apply. On a $500,000 home you’d need at least $25,000 down and $6,475 in land transfer tax ($2,475 for a first-time buyer).
Buying in Centretown
The downtown neighbourhood south of Parliament Hill, with condos, older brick homes split into units and many renters and investors.
Condos and units in older houses make up much of the housing, and many owners rent to students and government workers. It’s a common area for first purchases and small investment properties.
What to know about a mortgage in Centretown
Many homes in Centretown are condos. Lenders include your monthly condo fees when they work out what you can afford, and your lawyer will review the building’s status certificate, which shows the reserve fund and any upcoming special assessments.
Older homes in Centretown often need updates. A thorough inspection helps you budget, and if you plan to renovate, ask about a purchase-plus-improvements mortgage, which adds the cost of the work to your mortgage up front.
Centretown has steady rental demand. If you’re buying to rent, or to live in one unit and rent another, lenders count part of the expected rent as income, and the down payment and rules are different from a home you live in alone.
How NorthMerit can help
Tell us what you’re planning and we’ll connect you with one licensed mortgage professional who compares lenders for you. It’s free, and there’s no obligation.
What it costs to buy a $500,000 home in Centretown
| Repeat buyer | First-time buyer | |
|---|---|---|
| Minimum down payment | $25,000 | $25,000 |
| Mortgage insurance (added to the loan) | $19,000 | $19,000 |
| Sales tax on insurance (cash) | $1,520 | $1,520 |
| Ontario land transfer tax | $6,475 | $2,475 |
| Cash at closing | $32,995 | $28,995 |
Example price, not a local average. Minimum down payment and a 25-year amortization; legal fees, title insurance and adjustments are extra.
Ottawa rules that apply in Centretown
Ottawa charges a Vacant Unit Tax on residential properties left vacant. It was set at 1% of the assessed value; check the City’s page for the current rate and the yearly declaration. Source
Ontario’s Planning Act allows up to three units on most serviced residential lots, such as a main home plus a basement apartment and a garden suite, as long as you meet the building code and local zoning details. Source
Ottawa doesn’t license long-term rentals. Instead, its Rental Housing Property Management By-law sets landlord duties, such as response times for repairs and pest control. Source
Sources
We checked these figures against official sources in October 2026. Rules and rates change, so confirm the details with your mortgage professional, lawyer or the source before you rely on them.
- Minimum down payment (Financial Consumer Agency of Canada)
- Mortgage insurance premiums (CMHC)
- Calculating land transfer tax (Government of Ontario)
- Land transfer tax refunds for first-time buyers (Government of Ontario)
- Additional residential units, up to three per lot (Environmental Registry of Ontario)
- Ottawa: vacant home tax
- Ottawa: rental licensing
Common questions
How much down payment do I need for a home in Centretown?
What property tax will I pay in Centretown?
Can I add a rental unit to a home in Centretown?
Who can help me get a mortgage in Centretown?
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