If you’re thinking about buying a home, one of the most common questions is: how much does it actually cost?
If you’re planning to enter the London Ontario real estate market, it’s important to understand all the expenses involved — not just the purchase price.
Whether you’re a first-time home buyer in London, Ontario or looking to upgrade, this guide breaks down the real costs so you can plan with confidence.
💰 1. Down Payment Requirements in London, Ontario
Your down payment is the first major cost when buying a home.
In Canada:
Example:
Many buyers in the London Ontario real estate market start with 5% down, especially first-time buyers.
🧾 2. Land Transfer Tax (Ontario)
When buying a home in Ontario, you’ll need to pay a land transfer tax.
Estimated cost:
This is a one-time cost due at closing.
⚖️ 3. Legal Fees & Closing Costs
You’ll need a real estate lawyer to complete your purchase.
Typical costs:
These are essential parts of closing on a home in London, Ontario.
🔍 4. Home Inspection (Recommended)
While not mandatory, a home inspection is highly recommended.
Typical cost:
This helps identify potential issues before you finalize your purchase.
🏦 5. Mortgage Insurance (If Under 20% Down)
If your down payment is less than 20%, you’ll need CMHC mortgage insurance.
This cost:
Most first-time home buyers in London, Ontario fall into this category.
🧰 6. Additional Costs to Budget For
Other costs to keep in mind:
These can vary but should always be part of your budget planning.
📊 Total Estimated Cost to Buy a Home in London, Ontario
For a typical purchase, buyers should budget:
👉 1.5%–4% of the purchase price in closing costs (on top of your down payment)
Understanding these costs upfront will help you avoid surprises and make smarter decisions in the London Ontario real estate market.
🤝 Work With a Local London Ontario Real Estate Team
Buying a home doesn’t have to be overwhelming. Working with an experienced London Ontario REALTOR® ensures you understand every cost before you commit.
We help you:✔️ Plan your budget accurately✔️ Connect with trusted lenders and lawyers✔️ Navigate the buying process with confidence
📣 Thinking About Buying a Home in London, Ontario?
If you’re wondering what you can afford or want to start your home search, we’re here to help.
👉 Reach out today — we’ll guide you through every step of buying a home in London, Ontario.
If you’re planning to enter the London Ontario real estate market, it’s important to understand all the expenses involved — not just the purchase price.
Whether you’re a first-time home buyer in London, Ontario or looking to upgrade, this guide breaks down the real costs so you can plan with confidence.
💰 1. Down Payment Requirements in London, Ontario
Your down payment is the first major cost when buying a home.
In Canada:
- 5% on homes up to $500,000
- 10% on the portion above $500,000
Example:
- $400,000 home = $20,000 down
- $500,000 home = $25,000 down
Many buyers in the London Ontario real estate market start with 5% down, especially first-time buyers.
🧾 2. Land Transfer Tax (Ontario)
When buying a home in Ontario, you’ll need to pay a land transfer tax.
Estimated cost:
- Around $4,000–$8,000+ depending on the purchase price
This is a one-time cost due at closing.
⚖️ 3. Legal Fees & Closing Costs
You’ll need a real estate lawyer to complete your purchase.
Typical costs:
- $1,500 – $2,500 for legal fees
- Additional disbursements and title insurance
These are essential parts of closing on a home in London, Ontario.
🔍 4. Home Inspection (Recommended)
While not mandatory, a home inspection is highly recommended.
Typical cost:
- $400 – $700
This helps identify potential issues before you finalize your purchase.
🏦 5. Mortgage Insurance (If Under 20% Down)
If your down payment is less than 20%, you’ll need CMHC mortgage insurance.
This cost:
- Is added to your mortgage
- Varies based on your down payment percentage
Most first-time home buyers in London, Ontario fall into this category.
🧰 6. Additional Costs to Budget For
Other costs to keep in mind:
- Moving expenses
- Utility setup
- Immediate repairs or updates
- Property taxes
These can vary but should always be part of your budget planning.
📊 Total Estimated Cost to Buy a Home in London, Ontario
For a typical purchase, buyers should budget:
👉 1.5%–4% of the purchase price in closing costs (on top of your down payment)
Understanding these costs upfront will help you avoid surprises and make smarter decisions in the London Ontario real estate market.
🤝 Work With a Local London Ontario Real Estate Team
Buying a home doesn’t have to be overwhelming. Working with an experienced London Ontario REALTOR® ensures you understand every cost before you commit.
We help you:✔️ Plan your budget accurately✔️ Connect with trusted lenders and lawyers✔️ Navigate the buying process with confidence
📣 Thinking About Buying a Home in London, Ontario?
If you’re wondering what you can afford or want to start your home search, we’re here to help.
👉 Reach out today — we’ll guide you through every step of buying a home in London, Ontario.