How Much Money Do I Need to Buy a House in London Ontario?
Most people saving to buy a home in London Ontario focus on the down payment — but the down payment is only part of the picture. To avoid being caught short on closing day, you need to account for closing costs, mortgage insurance, and a handful of smaller fees that add up faster than most buyers expect. Here's every number, broken down clearly.
Eric Cassidy
London Ontario Real Estate Agent, Cassidy & Co.
The short answer: more than just your down payment
To buy a home in London Ontario, you need your down payment plus an additional 1.5% to 4% of the purchase price in closing costs — paid in cash on closing day, separate from your mortgage. On a $600,000 home, that means setting aside roughly $9,000 to $24,000 on top of whatever you put down. Underestimating this number is one of the most common financial surprises first-time buyers face.
The good news: once you know the full list, there are no surprises. Here's exactly what you're looking at for a typical London Ontario purchase in 2026, using the city's current benchmark home price of around $563,000 as our working example throughout.
Note on figures: All numbers below reflect 2026 rates and rules. Confirm all figures with your mortgage professional and lawyer before closing, as rates and programs can change.
How much down payment do you need in London Ontario?
Canada's minimum down payment rules are tiered by purchase price. For homes under $500,000, the minimum is 5% of the full price. For homes between $500,000 and $999,999 — where most London Ontario purchases fall — the rule is 5% on the first $500,000 and 10% on the remainder. Homes at $1,000,000 and above require 20% down, though since December 2024, insured mortgages are available up to $1.5 million under updated federal rules.
Most buyers in London are purchasing somewhere in the $450,000–$750,000 range. Here's what minimum down looks like at realistic price points:
Putting down 20% or more eliminates mortgage default insurance entirely — more on that below.
What is CMHC mortgage insurance and what does it cost?
If your down payment is less than 20%, Canadian law requires mortgage default insurance — commonly called CMHC insurance. It protects the lender, not you, if you default. The premium is calculated as a percentage of your mortgage and added directly to your loan balance. The one exception: Ontario charges an 8% provincial sales tax on the CMHC premium, and that PST portion must be paid in cash at closing.
The 2026 premium rates are 4.00% for 5–9.99% down, 3.10% for 10–14.99% down, and 2.80% for 15–19.99% down. On a $563,000 purchase with minimum down of $31,300, the mortgage is about $531,700 — the CMHC premium at 4.00% adds roughly $21,270 to your loan, and the Ontario PST on that premium is approximately $1,700 in cash due at closing.
The 20% threshold matters: Reaching 20% down doesn't just eliminate the insurance premium — it removes tens of thousands of dollars from your total mortgage and reduces the interest you'll pay over 25 years. On a $563,000 purchase, the difference between 5.5% and 20% down is roughly $21,000 added to your loan before you've made a single payment.
What are the closing costs when buying in London Ontario?
Closing costs in London Ontario typically run between 1.5% and 4% of the purchase price, paid in cash on or before closing day. These cannot be rolled into your mortgage. The main components are land transfer tax, legal fees, title insurance, and a home inspection.
*Ontario LTT on $563,000 is approximately $8,475 before any rebate. First-time buyers receive up to $4,000 back, reducing net LTT to approximately $4,475. London has no municipal land transfer tax.
What does the London Ontario first-time buyer advantage look like in practice?
London buyers have a meaningful advantage over Toronto buyers on closing costs: no municipal land transfer tax. In Toronto, buyers pay provincial LTT plus a matching city LTT, effectively doubling that line item. In London, you pay only the Ontario provincial tax — and first-time buyers get a rebate of up to $4,000, which covers the full LTT on homes up to $368,000 and offsets a significant chunk on anything above that.
Beyond LTT, first-time buyers in Canada may also access the First Home Savings Account (FHSA), which allows up to $8,000 per year in tax-deductible contributions (lifetime limit $40,000), and the Home Buyers' Plan (HBP), which lets RRSP holders withdraw up to $35,000 tax-free toward a first home purchase. Confirm current FHSA and HBP rules with your financial advisor, as program details can be updated annually.
The full picture: total cash needed to buy a $563,000 home in London
Pulling it all together for the city's benchmark home price, here's a realistic cash-to-close estimate for a first-time buyer versus a buyer with 20% down:
Estimates only. Based on a $563,000 purchase price (London Ontario MLS HPI benchmark, spring 2026). Confirm all figures with your mortgage professional and real estate lawyer before closing.
My advice: Budget for the top end of each range, not the middle. Closing costs have a way of landing closer to 3–4% in practice once you account for adjustments. Having a buffer means you close with no stress. Running thin on closing funds is a preventable problem.
What about the ongoing costs after you buy?
The costs above get you to the keys — but there are carrying costs to factor into your monthly budget. Property taxes in London Ontario typically run between $4,000 and $6,500 per year depending on assessed value and location. Home insurance runs approximately $100–$200 per month for a typical detached home. If you're buying a condo or townhome, monthly maintenance fees vary widely by building — always review the status certificate before buying.
None of this should be alarming — these are predictable, plannable costs. The goal is simply to have the full picture before you make your first offer. Our guide to how buying a home in London Ontario actually works walks through every step of the process if you want more context.
Frequently Asked Questions
How much do I need for a down payment on a house in London Ontario?
The minimum down payment on a $563,000 home (London's benchmark price) is approximately $31,300 — 5% on the first $500,000 and 10% on the remaining $63,000. For homes under $500,000 the minimum is 5% of the full price. Putting down 20% eliminates mandatory mortgage default insurance and lowers your total borrowing cost significantly.
What are the closing costs when buying a home in London Ontario?
Closing costs in London Ontario typically range from 1.5% to 4% of the purchase price, paid in cash at closing. The main items are Ontario land transfer tax, legal fees ($1,500–$2,500), title insurance ($250–$400), a home inspection ($400–$600), and the Ontario PST on your CMHC premium if your down payment is under 20%. London has no municipal land transfer tax, which is an advantage over Toronto buyers.
Do first-time home buyers get a land transfer tax rebate in London Ontario?
Yes. First-time buyers in Ontario receive a land transfer tax rebate of up to $4,000. This fully covers the LTT on homes valued up to $368,000. On a $563,000 home where the LTT is approximately $8,475, the rebate reduces your net payable to about $4,475. Confirm eligibility with your real estate lawyer.
What is CMHC insurance and do I have to pay it in London Ontario?
CMHC mortgage default insurance is required in Canada when your down payment is less than 20% of the purchase price. The premium is added to your mortgage balance — not paid in cash. However, Ontario charges an 8% PST on that premium, and that amount must be paid in cash at closing. Putting 20% or more down eliminates this cost entirely.
How much total money do I need to buy a house in London Ontario?
For a first-time buyer purchasing at London's benchmark price of around $563,000 with minimum down payment, plan to have approximately $40,000–$43,000 in total cash — covering the down payment and all closing costs. With 20% down the total cash needed is approximately $120,000–$130,000. Always budget toward the higher end of the closing cost range to avoid any last-minute shortfall.
READY TO RUN THE REAL NUMBERS?
Let's build your actual buying budget.
The estimates above give you the framework. When you're ready to get specific — your price range, your down payment, your closing cost estimate — let's talk through it together.
Eric Cassidy
London Ontario Real Estate Agent — Cassidy & Co.
Eric works with first-time buyers and move-up buyers across London Ontario, helping them understand exactly what they need before they start looking. His approach: clear numbers, no surprises, and honest advice about what the market actually looks like right now. Learn more about Eric and the team.
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