Buying a Home in London Ontario — 2025 Guide

Step 1 — Know Your Budget Before You Look

The biggest mistake London ON buyers make is falling in love with a home before knowing what they can actually afford. Get your budget clear first. A general rule: your home should cost no more than 4–5x your gross annual household income. With London's average home price around $621,000, a household income of $125,000–$155,000 puts a typical home within reach.

Factor in all carrying costs — mortgage payment, property taxes (~$4,000–$6,000/year in London ON), home insurance, and a maintenance reserve of 1% of home value annually.

Step 2 — Get Pre-Approved for a Mortgage

A mortgage pre-approval gives you a firm borrowing limit from a lender based on your actual income, credit, and assets. It's different from a pre-qualification (which is just an estimate). In London's market, sellers and their agents take pre-approved buyers far more seriously — in competitive situations it can be the deciding factor.

• Contact your bank or an independent mortgage broker
• Gather T4s, pay stubs, and 2 years of Notice of Assessments
• Pre-approvals are typically valid for 90–120 days
• Rate holds lock in today's rate while you search

Step 3 — Understand Down Payment Requirements

In Canada, minimum down payments are set by federal rules based on purchase price:

• Under $500,000 — minimum 5% down
• $500,000–$999,999 — 5% on first $500K + 10% on remainder
• $1,000,000+ — minimum 20% required

For a typical $620,000 London home, minimum down is $37,000. Putting 20% ($124,000) eliminates CMHC mortgage insurance and reduces your monthly payment meaningfully. First-time buyers should also look into the First Home Savings Account (FHSA) — up to $8,000/year in tax-deductible contributions toward a first home purchase.

Step 4 — Choose Your London ON Neighbourhood

London has meaningfully different neighbourhoods at very different price points. Your neighbourhood choice affects your daily life, your schools, your commute, and your long-term property value. Take time to explore our neighbourhood guide before narrowing your search.

• Old North — prestigious, historic, $750K–$1.1M
• Byron — families, Springbank Park, $650K–$900K
• Masonville — upscale, top schools, $700K–$1M+
• Westmount — value, space, established, $550K–$750K
• Old East Village — character, arts, value, $450K–$650K
• Lambeth — newer builds, families, $550K–$800K

Step 5 — Work With a Local London ON Agent

A buyer's agent costs you nothing — the seller pays buyer agent commission in Ontario. What you get is MLS access the moment homes list, local market expertise, negotiation support, and someone protecting your interests from offer to close. A good London ON agent knows which streets to avoid, what fair value looks like, and how to structure a winning offer without overpaying.

Step 6 — Make an Offer

Your agent prepares an Agreement of Purchase and Sale with price, deposit, conditions, and closing date. In London's 2025 balanced market, conditional offers are more commonly accepted than during the 2021–2022 peak. Always include a home inspection condition — especially important for London's large stock of 1950s–1980s homes.

Step 7 — Home Inspection

Budget $400–$600 for a qualified home inspector. Worth every penny. Common issues in London's older housing stock include aging electrical panels, clay or cast iron plumbing, older roofs, and foundation settling. The inspection gives you negotiating power — and the ability to walk away if issues are serious.

Step 8 — Budget for Closing Costs

• Ontario Land Transfer Tax — ~$8,950 on a $620K home
• First-time buyer LTT rebate — up to $4,000 back
• Legal fees — $1,500–$2,500
• Title insurance — $200–$400
• Home inspection — $400–$600
• Moving costs — $1,000–$3,000

Total closing costs after rebate for a first-time buyer in London ON typically run $8,000–$14,000.