Buying a home in London Ontario can feel overwhelming — especially when you're trying to figure out the real numbers behind your downpayment and closing costs. Whether you're a first-time buyer or relocating from another city, knowing what it actually takes to close on a $500,000 home is one of the most important steps to move forward with clarity and confidence.
This guide breaks down what you can expect financially when buying in London Ontario right now, including what first-time buyers might save and what surprises to prepare for.
How much is the minimum downpayment in Ontario?
In Ontario, the minimum downpayment for a home priced at $500,000 is 5% of the purchase price. That means you'll need $25,000 just for the downpayment. This applies to all buyers, whether you're purchasing your first home or your fifth. Keep in mind that if you're putting down less than 20%, you will need mortgage default insurance — often rolled into your monthly payments.
What closing costs should I expect when buying in London Ontario?
Beyond the downpayment, closing costs can catch buyers off guard. In London Ontario, plan for an additional $7,500 to $10,000 to cover:
- Legal fees for your real estate lawyer
- Title insurance (usually a one-time cost)
- Land Transfer Tax (varies depending on purchase price)
- Adjustments (like property taxes or utilities prepaid by the seller)
These costs can vary slightly depending on your lawyer and lender, but budgeting at the higher end ensures fewer surprises.
Do first-time buyers get any rebates in Ontario?
Yes. If you're a first-time homebuyer in Ontario, you may qualify for a Land Transfer Tax Rebate of up to $4,000. This rebate can significantly offset your closing costs, especially if your total Land Transfer Tax falls within that amount. To qualify, you or your spouse must not have owned a home before anywhere in the world. It’s a smart idea to speak with a lawyer or mortgage advisor to confirm your eligibility before budgeting your final numbers.
What is the total cost to close on a $500,000 home in London?
All in, you should plan to have between $32,000 and $35,000 available when closing on a $500K home in London Ontario. Here's how that breaks down:
- $25,000 minimum downpayment
- $7,000–$10,000 in closing costs (before any rebates)
With a first-time buyer rebate, your total may come in closer to the lower end of that range. Planning ahead with a clear number helps reduce stress and supports smarter financial decisions as you search for the right property.
Why it pays to plan ahead
Even though the math is simple, the process isn’t always. Every buyer has different financial considerations and there are dozens of small steps between pre-approval and possession. That’s why taking time to understand your numbers, organize your documents, and build a realistic budget makes the transition smoother and far less stressful.