Buyer guide
Buying your first home in London, Ontario
What it costs, what the government gives back, and the six steps from pre-approval to keys.
Updated 2026-09-07 · Written by the Sunset Living realtors, Liquid Sunset Business Brokers Inc.
How much you need to buy a first home in London
The minimum down payment in Canada is 5% of the first $500,000 of the purchase price and 10% of the portion between $500,000 and $1.5 million; homes over $1.5 million need 20%. On a $600,000 London home that is $35,000 down. With less than 20% down, the mortgage must be insured, and first-time buyers can now take a 30-year amortization on insured mortgages.
Sources: Financial Consumer Agency of Canada, down payment rules; Department of Finance Canada, September 2024 mortgage reforms.
What Ontario and Canada give back
- Ontario land transfer tax refund: up to $4,000 for eligible first-time buyers, which erases the provincial tax on homes up to $368,000. London has no municipal land transfer tax. Source: Ontario Ministry of Finance.
- Home Buyers' Plan: withdraw up to $60,000 per person from your RRSP tax-free, repaid over 15 years. Source: Canada Revenue Agency.
- First Home Savings Account: save $8,000 a year to a $40,000 lifetime limit; contributions are deductible and qualifying withdrawals are tax-free. Source: Canada Revenue Agency.
- Home Buyers' Amount: a federal non-refundable tax credit of $10,000, worth up to $1,500 in the year you buy. Source: Canada Revenue Agency.
Closing costs to budget for
Plan for roughly 1.5% to 4% of the purchase price on top of the down payment: land transfer tax after the refund, legal fees and disbursements, title insurance, a home inspection, and adjustments for property tax or utilities the seller has prepaid. On a $600,000 London home that is typically $9,000 to $24,000.
The six steps, in order
- 1
Get pre-approved
A lender confirms how much you can borrow and at what rate, usually held for 90 to 120 days. This sets your budget before you fall for a house.
- 2
Shortlist neighbourhoods
Pick two or three London neighbourhoods that fit your commute, schools and budget. Our neighbourhood guides show price bands for each.
- 3
Tour and compare
Your realtor previews homes, books showings and pulls the recent sales for each one so you know what it is really worth.
- 4
Offer with a plan
Agree a walk-away price before you write the offer. Include a home inspection and financing condition unless a competitive situation makes that unwise, and we will tell you when it does.
- 5
Inspection, financing, lawyer
Ten days of due diligence: inspection, final lender approval, and a real-estate lawyer to review title and prepare closing.
- 6
Close and move in
Sign at the lawyer's office a few days before closing; on closing day the funds transfer and you get the keys.
Where first-time buyers are finding homes in London
Most first purchases in London land between $450,000 and $700,000: semis in Wortley Village, bungalows and splits in Oakridge, townhomes in Masonville, and older Byron homes on bigger lots. Current monthly averages come from the London and St. Thomas Association of REALTORS®; we will walk you through this month's numbers on the first call.
First-time buyer questions
How much down payment do I need in London, Ontario?
The Canadian minimum is 5% of the first $500,000 and 10% of the portion between $500,000 and $1.5 million. On a $600,000 London home that is $35,000. Below 20% you also pay mortgage default insurance, which is added to the mortgage.
Do first-time buyers get a land transfer tax break in Ontario?
Yes. Ontario refunds up to $4,000 of provincial land transfer tax to eligible first-time buyers, which covers the full tax on homes up to $368,000 and part of it above that. London has no additional municipal land transfer tax, unlike Toronto.
Can I use my RRSP or FHSA?
The Home Buyers' Plan lets each first-time buyer withdraw up to $60,000 from an RRSP tax-free, repaid over 15 years. A First Home Savings Account lets you save $8,000 a year to a $40,000 lifetime limit, tax-deductible in and tax-free out. You can use both.
What are closing costs in London, Ontario?
Budget roughly 1.5% to 4% of the price on top of your down payment: land transfer tax after any refund, legal fees and disbursements, title insurance, a home inspection, and adjustments for prepaid property tax or utilities.
Do I pay my realtor as a buyer?
Usually not. In most London resale transactions the seller's brokerage pays the buyer-side commission. We confirm this in writing before you make any offer.
Ready to start?
A 20-minute call to set your budget, shortlist neighbourhoods and plan the search.