The down payment is usually the biggest obstacle between renting and owning, and most buyers only know about one or two of the programs that can help close that gap. Here's what's actually available across London, St. Thomas and the Kitchener-Waterloo-Cambridge triangle in 2026 — federal, provincial and municipal — with real numbers, not vague promises.
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548 490 4577Federal programs available everywhere in Canada
The First Home Savings Account (FHSA) lets eligible first-time buyers contribute up to $8,000 per year, to a $40,000 lifetime limit, with both the contribution and the growth withdrawn completely tax-free when used toward a qualifying first home. The RRSP Home Buyers' Plan (HBP) is separate — it lets you withdraw up to $60,000 from your RRSP tax-free toward a first home, repayable back into your RRSP over 15 years starting the second year after withdrawal. Current federal rules allow eligible buyers to use both an FHSA withdrawal and the HBP toward the same home purchase — confirm the specifics of stacking both with your mortgage broker or accountant, since eligibility rules for each program differ.
The Ontario Land Transfer Tax refund
Eligible first-time buyers can receive a refund of Ontario's land transfer tax up to a maximum of $4,000, which in practice means no provincial land transfer tax owing on the first $368,000 of a home's value. This applies province-wide, so it's available to first-time buyers purchasing anywhere in London, St. Thomas or the Kitchener-Waterloo-Cambridge triangle.
London & Middlesex: Homeownership Down Payment Assistance Program
The City of London, in partnership with the province and federal government, offers eligible moderate-income renter households an interest-free, forgivable loan worth up to 5% of a home's purchase price, to a maximum of $25,000. The loan is registered as a second mortgage and is fully forgiven after 20 years as long as you continue living in the home — it applies to homes up to $500,000, and applicants can't currently own any residential property. As of April 2026, applicants need a 2025 Notice of Assessment from the CRA as part of their application. Applications closed on October 9, 2026 at 4:30 p.m.; the City's page says the program is expected to re-open April 1, 2027, so check the official program page for its next intake.
Waterloo Region: Affordable Home Ownership Program
Covering Kitchener, Waterloo and Cambridge, the Region of Waterloo's Affordable Home Ownership Program offers an interest-free 5% down payment loan, forgiven entirely after 20 years in the home, for eligible renters who've lived in the region for at least a year. As of 2026, the program applies to homes priced at $620,000 or less, with a household income limit around $129,200 — confirm the current caps directly with the Region of Waterloo, since both figures are reviewed periodically.
St. Thomas & Elgin County: Affordable Homeownership Program
The St. Thomas-Elgin Affordable Homeownership Program mirrors the London-Middlesex structure — an interest-free, forgivable loan of up to 5% of the purchase price, to a maximum of $25,000, over a 20-year term, for eligible first-time-buyer renters in St. Thomas or Elgin County. Household income limits sit around $113,900 for an individual and $135,000 for a family of two or more. This program runs intermittently based on funding — it has closed and reopened more than once, so check current status with St. Thomas-Elgin Social Services before applying.
| Program | Region | Amount | Key Requirement |
|---|---|---|---|
| FHSA | All of Canada | Up to $8,000/yr, $40,000 lifetime, tax-free | First-time buyer; no home ownership in the year or 4 preceding years |
| RRSP Home Buyers' Plan | All of Canada | Up to $60,000, tax-free, repayable | Repay over 15 years starting year 2 after withdrawal |
| Ontario LTT Refund | Ontario-wide | Up to $4,000 | First-time buyer, occupy within 9 months of closing |
| London & Middlesex DPA | London / Middlesex | 5% of price, up to $25,000, forgivable in 20 yrs | Moderate-income renter; home ≤ $500,000 |
| Waterloo Region AHOP | Kitchener / Waterloo / Cambridge | 5% of price, forgivable in 20 yrs | Renter 12+ months; home ≤ $620,000; income ≤ ~$129,200 |
| St. Thomas-Elgin AHP | St. Thomas / Elgin County | 5% of price, up to $25,000, forgivable in 20 yrs | First-time buyer; income ≤ ~$113,900 (individual) |
Can these programs be combined?
Generally yes for the federal and provincial programs — the FHSA, HBP and Ontario LTT refund are separate programs that eligible buyers can use together. Combining a municipal forgivable loan with the federal and provincial programs is often possible too, but each municipal program has its own specific rules about other assistance you're receiving — confirm directly with the municipal program and your mortgage broker before assuming everything stacks freely.
Frequently asked questions
Do I have to be a first-time buyer for all of these programs?
Most of them, yes — FHSA, the Ontario LTT refund, and all three municipal programs require first-time-buyer status (though the FHSA and HBP definitions vary slightly, generally meaning you haven't owned and occupied a home in the current year or the four preceding years). The RRSP Home Buyers' Plan uses a similar first-time-buyer test.
Are the municipal down payment loans always available?
No — all three (London-Middlesex, Waterloo Region, St. Thomas-Elgin) run on limited annual funding and operate first-come, first-served, sometimes closing and reopening based on budget. Confirm current application status directly with each program before building a purchase plan around one.
Do I repay the municipal forgivable loans?
Only if you sell or stop living in the home before the 20-year term is up, in most cases — otherwise the loan is fully forgiven at the end of the term. Confirm the exact repayment triggers with the specific program, since terms can vary.
Figuring out which of these actually apply to you can get confusing fast — send me your situation and I'll help you map out a realistic down payment plan before you start touring homes.
