How to Buy a Home in London, Ontario: A First-Time Buyer’s Guide

Buying your first home is a big milestone. But it can also feel overwhelming. Rising home prices, mortgage terms, and paperwork can confuse anyone.

The good news? If you’re looking for trusted mortgage brokers in London, you’re already on the right path. This simple guide explains how to buy a home in London step by step.

London, Ontario, is still one of the most affordable cities in Ontario. Compared to Toronto or Ottawa, you get better value and strong long-term growth. With the right plan, homeownership is within reach.

If you are a first-time home buyer in London, you’ll learn how to qualify, plan your budget, and confidently close your first deal.

Step 1: Check If You Qualify as a First-Time Home Buyer

Before anything else, confirm your eligibility. In Canada, you are considered a first-time home buyer if you:

• Have never owned a home before
• Recently separated or divorced
• Haven’t lived in a home you owned in the last 4 years

Why This Matters

If you qualify, you can access valuable government programs. These can lower your upfront costs and monthly payments.

Helpful Programs for First-Time Home Buyers in London

1. First-Time Home Buyer Incentive (FTHBI)
The government contributes 5–10% of your home price. This reduces your mortgage payments.

2. RRSP Home Buyers’ Plan (HBP)
Withdraw up to $35,000 tax-free from your RRSP. Couples can use up to $70,000.

3. Ontario Land Transfer Tax Refund
You can save up to $4,000 at closing.

Bonus: London does not charge a municipal land transfer tax. This means extra savings compared to Toronto.

Step 2: Understand the Real Cost of Buying a Home

Many buyers only think about the home price. But there are other costs you need to plan for.

Common Costs

• Down payment (5–20%)
• Land transfer tax
• Home inspection ($400–$700)
• Legal fees ($1,200–$2,000)
• Title insurance ($200–$400)

Plan Beyond the Purchase

Your monthly mortgage is just one part of the cost. Also budget for:

• Property taxes (around 0.9% of home value)
• Utilities
• Home insurance
• Maintenance

A smart rule: Save 1–2% of your home’s value each year for repairs.

Many people Googling “how to buy a home in London” focus solely on the purchase price, overlooking several hidden costs that quickly add up. Here’s a clear snapshot of what to expect:

Step 3: Get Pre-Approved for a Mortgage

Before you start house hunting, get pre-approved. This tells you how much you can afford and shows sellers you are serious.

Why Pre-Approval Is Important

• You shop within your budget
• You can act quickly when you find a home
• Sellers trust your offer more

What You’ll Need

• Proof of income (T4s, pay stubs)
• Employment letter
• Bank statements
• Credit report

Try to keep your credit score above 680. Also, avoid taking new loans before closing.

Pro Tip

Mortgage brokers in London often offer better rates than banks. They compare multiple lenders to find the best deal for you.

As your financial situation improves over time, you may want to refinance your mortgage to take advantage of better interest rates or access your home equity. Many homeowners use refinancing to fund renovations or consolidate higher-interest debt. 

Step 4: Choose the Right Neighbourhood

Location matters just as much as the home itself. London offers a mix of affordable and family-friendly areas.

Popular Areas for First-Time Home Buyers in London

Masonville
Great schools and a safe environment. Ideal for families.

Old South (Wortley Village)
Charming homes, walkable streets, and local shops.

Westmount
Affordable and convenient for commuting.

East London
Lower prices. Good for budget buyers and investors.

Byron
Quiet and close to parks. Perfect for families.

What to Consider

• Distance to work or school
• Access to transit and shopping
• Future development in the area

Choosing the right neighbourhood can increase your home’s value over time.

Step 5: Make an Offer and Close the Deal

Once you find the right home, act quickly—but carefully.

Steps to Follow

1. Submit an Offer
Your agent helps you choose a fair price.

2. Add Conditions
Include financing and home inspection for protection.

3. Pay Deposit
Usually 1–2% of the purchase price.

4. Home Inspection
Important for older homes. Costs around $400–$700.

5. Closing Day
Your lawyer handles paperwork and transfers ownership.

As your home equity grows, you may consider a second mortgage to access extra funds without refinancing your primary loan. It can help with renovations, investments, or unexpected expenses.

Step 6: Use First-Time Buyer Programs

Take advantage of programs that make buying easier.

FHSA (First Home Savings Account)

• Save up to $40,000 tax-free
• Contributions are tax-deductible
• Withdrawals are tax-free

CMHC-Insured Mortgage

If your down payment is under 20%, CMHC insurance helps you qualify with a lower deposit.

City of London Down Payment Assistance

The city offers:

• Up to 5% of the home price (max $25,000)
• Interest-free loan
• Forgiven after 20 years

Basic Eligibility

• Income under set limits
• Home under $500,000
• Must live in the property

This program helps many renters become homeowners.

Step 7: Budget for Life After Buying

Owning a home comes with ongoing costs.

Monthly Expenses

• Mortgage payment
• Property tax
• Home insurance ($70–$150/month)
• Utilities ($350–$500/month)
• Maintenance

Planning helps you stay financially secure.

Step 8: Learn to Negotiate Smartly

Negotiation can save you thousands.

Simple Tips

• Check recent sales in the area
• Be flexible with closing dates
• Ask about cashback offers
• Stay within your budget

Don’t let emotions drive your decision.

Final Thoughts: Is London a Good Place to Buy?

Buying a home is realistic and smart—especially for first-time buyers in London.

To succeed:

• Save at least 5% for your down payment
• Get pre-approved early
• Use available government programs
• Work with local experts
• Plan your budget carefully

London offers a balanced market. It is more affordable than major cities and is still growing. Whether you want a condo or a family home, there are great options available.

Quick Summary: How to Buy a Home in London

Buying your first home in London doesn’t have to be stressful. With the right plan, you can move from renting to owning with confidence. And in 2026, it remains one of the smartest long-term financial decisions you can make.

FAQ

1. How much do I need to buy a home in London, Ontario?

You typically need at least 5% of the home price as a down payment. You should also budget extra for closing costs like legal fees, taxes, and inspections.

2. Is London, Ontario, a good place for first-time home buyers?

Yes, London is more affordable than cities like Toronto. It offers good neighbourhoods, steady growth, and great value for first-time buyers.

3. What credit score do I need to buy a home in London?

Most lenders prefer a credit score of 680 or higher. However, some programs allow lower scores with certain conditions.

4. How long does it take to buy a home in London?

It usually takes 30 to 90 days from offer to closing. The full process may take longer depending on your mortgage approval and home search.

5. Can I buy a home in London with a low down payment?

Yes, you can buy with as little as 5% down. Programs like CMHC insurance and government incentives help make this possible.