First-Time Home Buyer Guide for London, Ontario
Buying your first home in London, Ontario is more attainable than in most Ontario markets, but the process still has plenty of moving parts. This guide walks through each step and the London-specific details — like land transfer tax and the first-time buyer rebate — that catch new buyers off guard.
This is general information, not financial or legal advice; always confirm the specifics with a mortgage professional and a real estate lawyer.
Step 1: Get pre-approved
Before you look at homes, talk to a mortgage broker or your bank to get pre-approved. A pre-approval tells you your maximum budget, locks a rate for a period, and signals to sellers that you're serious. Have your income documents, down payment source, and debts ready.
You can get a rough sense of your budget first with our affordability calculator, then confirm the real number with a lender.
Step 2: Understand your down payment
In Canada, the minimum down payment is 5% on the first $500,000 of a home's price and 10% on the portion above $500,000. Any home under $1 million with less than 20% down requires mortgage default insurance (CMHC), which is added to your mortgage.
First-time buyers can also use registered savings toward a down payment through federal programs — ask your lender which you qualify for.
Step 3: Budget for land transfer tax and closing costs
Ontario charges a provincial Land Transfer Tax on every home purchase, calculated on a sliding scale of the purchase price. Unlike Toronto, London has no additional municipal land transfer tax — an important saving.
First-time buyers in Ontario qualify for a Land Transfer Tax rebate of up to $4,000, which eliminates the tax entirely on homes up to roughly $368,000 and reduces it on higher-priced homes. Beyond land transfer tax, budget for legal fees, a home inspection, title insurance, and moving costs — typically 1.5% to 4% of the purchase price in total.
Step 4: Make an offer and close
Once you find the right home, your agent helps you make an offer with appropriate conditions — commonly financing and a home inspection. In a competitive situation, pricing and conditions strategy matter, which is where a local agent earns their keep.
After your offer is accepted and conditions are met, your lawyer handles the closing: title search, funds transfer, and registration. You get the keys on closing day.
Common first-time buyer mistakes
- Shopping before getting pre-approved — and falling for homes out of budget
- Forgetting closing costs on top of the down payment
- Skipping the home inspection to win a bidding war
- Maxing out the pre-approval instead of leaving room for rate changes
- Not researching the neighbourhood's schools, commute, and resale trends
Frequently asked questions
How much do I need for a down payment in London, Ontario?
The minimum down payment in Canada is 5% on the first $500,000 of the price and 10% on any portion above $500,000. On London's more affordable homes, that often means a smaller dollar figure than in pricier Ontario markets. Under 20% down requires CMHC mortgage insurance.
Does London, Ontario have a municipal land transfer tax?
No. London buyers pay only the Ontario provincial Land Transfer Tax — there is no additional municipal land transfer tax like Toronto's. First-time buyers also qualify for a provincial rebate of up to $4,000.
What is the first-time home buyer land transfer tax rebate in Ontario?
Ontario offers first-time home buyers a Land Transfer Tax rebate of up to $4,000, which fully offsets the tax on homes up to about $368,000 and reduces it on higher-priced purchases.
Keep exploring