London & Southwestern Ontario
First-Time Home Buyer Mortgage in London, Ontario
Buying your first home in London means budgeting for more than the down payment, and understanding how lenders read your income before you fall in love with a listing.
This page walks through the numbers in the order they actually matter.
Nandan Bajani · Mortgage Agent Level 1 | Ontario · The Mortgage Firm Inc.
Today's lowest insured rates for first-time buyers
As of October 23, 2026
- Fixed
- 4.34%
- 5-Year term
- Variable
- 3.43%
- 5-Year term
- Prime
- 4.45%
- Bank of Canada
Rates are set by lenders, not by town, and depend on your own file.
Compare all 8 terms & inquire
London, Ontario — Daily Update
Compare Today's Mortgage Rates
As of October 23, 2026
Bank of Canada overnight rate 2.25%, prime 4.45%
2-Year
Fixed
4.39%
Big 6 Bank
Variable
—
3-Year
Fixed
4.49%
Canadian Lender
Variable
3.90%
Alterna Savings
5-Year
Fixed
4.34%
Canadian Lender
Variable
3.43%
Canadian Lender
Rates shown are for insured mortgages (down payment under 20%). Conventional/uninsured pricing may differ — contact me for your exact rate.
Rates are illustrative, change daily and are subject to lender qualification. Source: Ratehub.ca public rate table, as of October 23, 2026.
Plan your numbers
Run Your Numbers
From first numbers to keys
Your First-Time Buyer Journey
- 1
Get pre-approved
Know your real number before you shop
- 2
Set your range
Down payment + closing costs + a comfortable payment
- 3
Shop with a realtor
Pre-approval in hand, offers get taken seriously
- 4
Offer & conditions
Financing, inspection, and any other conditions
- 5
Final approval
Lender confirms the specific property
- 6
Closing day
Keys in hand
Down payment: how much you truly need
Minimum is 5% of the first $500,000 and 10% of any portion from $500,000 to $1,499,999 (20% at $1.5 million or more).
Under 20% down, mortgage default insurance applies and the premium is added to your mortgage balance. Funds must be traceable for 90 days; gifted down payments from immediate family are accepted by most lenders with a signed gift letter.
5%
First $500,000
10%
$500,000–$1,499,999 portion
20%
$1.5 million or more
What You'll Need
Government-issued photo ID
Recent pay stubs, T4s or Notices of Assessment
Proof of down payment (90-day history, or a signed gift letter from immediate family)
Employment letter
Purchase agreement (once you have one)
Closing costs London buyers forget
Set aside roughly 1.5% to 3% of the purchase price beyond your down payment.
Ontario land transfer tax, with a first-time buyer refund of up to $4,000 for eligible buyers
Lawyer fees, title insurance and disbursements
Home inspection and, where required, appraisal
Property tax and utility adjustments owed back to the seller
Moving costs and immediate repairs
How lenders decide what you can afford
How lenders decide what you can afford
Two ratios drive it.
Gross Debt Service compares housing costs — principal, interest, property taxes and heat — to gross income. Total Debt Service adds every other monthly obligation. Both are calculated at the stress-test qualifying rate, not your contract rate.
Programs worth asking about
Programs worth asking about
Eligibility rules change and depend on your situation, so treat these as questions to raise rather than guarantees: the Home Buyers' Plan RRSP withdrawal, the First Home Savings Account, the federal First-Time Home Buyers' Tax Credit, and the Ontario land transfer tax refund.
I'll confirm what currently applies to your file rather than quoting a number that may have moved.
London-specific considerations
London-specific considerations
Older neighbourhoods such as Old North and Wortley Village often mean knob-and-tube or aluminum wiring questions from insurers; that affects financing more often than people expect.
Newer subdivisions in Summerside, Sunningdale and north of Fanshawe Park Road may come with builder timelines and new-build financing rules. Student-rental purchases near Western or Fanshawe are underwritten differently from owner-occupied homes.
Stacking the federal first-time buyer programs
Stacking the federal first-time buyer programs
The strongest first-time files combine several programs rather than relying on one.
Rules and limits change, so I confirm the current version against your file before you count on any of them.
- First Home Savings Account (FHSA): contributions up to $8,000 a year to a $40,000 lifetime limit, deductible like an RRSP and tax-free on a qualifying withdrawal
- RRSP Home Buyers' Plan: withdraw up to $60,000 per eligible buyer, provided the funds have been in the RRSP for at least 90 days
- Insured purchase price cap of $1.5 million, with the sliding minimum down payment of 5% on the first $500,000 and 10% on the rest
- 30-year amortization on insured mortgages for eligible first-time buyers and new-build purchases, which lowers the payment but increases total interest
- Energy-efficiency premium refunds offered by the mortgage insurers on qualifying homes with an EnerGuide rating
- The federal First-Time Home Buyers' Tax Credit, claimed on your tax return to help offset closing costs
Related reading
Questions people ask
How much income do I need to buy a home in London, Ontario?
It depends on price, down payment, property taxes, heating costs and your other debts — all run at the stress-test rate. Rather than quote a figure that may not fit you, I'll run your actual numbers.
Can my parents gift my down payment?
Most lenders accept gifted down payments from immediate family with a signed gift letter and proof the funds were transferred and are non-repayable.
Is a 30-year amortization available to first-time buyers?
Longer amortizations are available in defined circumstances, including some insured first-time buyer and new-build scenarios. Whether it applies depends on current insurer and lender rules at the time of your application.
Should I buy with less than 20% down?
Sometimes yes — waiting to save 20% can cost more than the insurance premium if prices or rates move. It's a math question specific to your timeline.
What credit score do I need?
Prime lenders generally look for 680 or higher, with lower scores possible on insured and alternative options depending on the rest of the file.
Is there a down payment assistance program in London, Ontario?
Yes. The City of London's Homeownership Down Payment Assistance Program offers an interest-free loan of up to 5% of the purchase price (to a maximum of $25,000) that is forgiven if you live in the home for 20 years. Its published rules include renting in London or Middlesex County, not owning any residential property, a maximum home price of $500,000, gross household income of no more than $113,700, household liquid assets of no more than $100,000, and qualifying for an insured mortgage. The 2026 intake closed on October 9, 2026, and the City expects to reopen it on April 1, 2027, so check london.ca for the current status before you plan around it.
What first-time buyer rebates and savings programs can I use in Ontario?
First-time buyers can get a refund of up to $4,000 of Ontario land transfer tax, and London has no municipal land transfer tax on top of that. You may also be able to use a First Home Savings Account and the RRSP Home Buyers' Plan toward your down payment. Each program has its own eligibility rules, so confirm them before relying on the funds.
How much down payment do I need on a $500,000 home in London?
The minimum is 5% of the first $500,000, so $25,000 on a $500,000 home. Above $500,000 the minimum is 10% of the portion over that amount: a $600,000 home needs $25,000 plus $10,000, or $35,000. With less than 20% down the mortgage must be insured, and you'll also need cash for closing costs.
Plan your first London purchase with real numbers
A short conversation is usually enough to know what's realistic. No obligation, no pressure.