London's down payment program at a glance
The City of London runs the Homeownership Down Payment Assistance Program for London and Middlesex County, with federal and provincial funding through the Ontario Priorities Housing Initiative. It opened to applications on 29 October 2025. The City's page, last updated 10 September 2026, says funding is limited and high interest is expected.
| What you get | 5% of the purchase price, up to $25,000 |
|---|---|
| How it's paid | An interest-free loan, forgiven on its 20th anniversary if there's been no default |
| Household income | Gross household income of $113,700 or less, counting everyone 18 and over |
| Liquid assets | $100,000 or less |
| Home price | $500,000 or less, with no exceptions |
| Where | London or anywhere in Middlesex County |
| Home types | New or resale: detached, semi-detached, freehold or condo townhouse, stacked or row house, or condo apartment, modest in size for the area |
| Mortgage | A pre-approval from a recognized lender; mortgage insurance is required |
| Status | Checked 28 September 2026: open, first come, first served until funds run out |
Source: the City of London program page and FAQ, and Middlesex County's program page (links under Sources below). The City decides who qualifies; I'm not part of the program.
Who can apply
- You're 18 or older.
- You rent now in London or Middlesex County. The City defines a renter as a tenant with a rental agreement for a self-contained unit, with a landlord who isn't a relative.
- You don't own a home or any residential property, in whole or in part, including a cottage, and you don't live with a spouse or partner who does.
- Your household's gross income and liquid assets are within the limits in the table above.
- You're pre-approved for a mortgage at a recognized financial institution, can show you can sustain it, and can pay all your closing costs.
- You'll live in the home for the full 20 years and won't lease it or rent out rooms.
Unlike the St. Thomas program, London's isn't limited to first-time buyers. The City's FAQ says someone who owned a home in the past can qualify, as long as they rent now and own no property. If you're self-employed, the City assesses income the way a lender would and may ask for your T1 General and Statement of Business Activities.
The order matters: offer first, then apply
- Get pre-approved. Tell your lender you plan to use the program. It requires mortgage insurance, and your bank or mortgage lender has to sign the City's bank verification of income and assets form.
- Make a conditional offer on a home under $500,000. The program asks for an offer before you apply. Ask for a closing date at least 30 business days away, which the City says it needs to process your file.
- Send the complete application package right away. By email to housingprograms@london.ca, at City Hall's Path2Approval counter on the 2nd floor, or by mail. Incomplete packages aren't reviewed until the missing pieces arrive.
- Get the City's decision. It aims to decide on a complete application within about five business days, depending on volume.
- Inspect, sign and close. Every home needs a home inspection at your cost, and the report goes to the City after approval and before it releases the funds. You sign the loan agreement, and your lawyer closes.
This is where the offer itself matters. Your conditions have to leave room for the City's review, and 30 business days is about six weeks once weekends are counted, so a quick close won't work with this program. I write offers with both in mind from the start.
The application checklist
For every household member aged 18 and over, the City asks for:
- Your 2025 Notice of Assessment from the CRA (required since 5 April 2026).
- Your two most recent pay stubs, or a recent letter of employment.
- The bank verification of income and assets form, completed and signed by your bank or mortgage lender.
- Birth certificates for all household members.
- Proof of residence in Canada, such as a citizenship or permanent resident card (copies, not originals).
- Your mortgage approval documents.
- Your current lease, with your landlord's name and contact information. If you've been renting month to month after the first year, add proof of rent payments: a landlord letter, six months of receipts or bank statements.
The application forms themselves, including the eligibility application and affidavit, are linked from the City's program page.
When you'd pay it back
It's a loan under an agreement with the City, and it's forgiven on its 20th anniversary if nothing has triggered repayment first. Within the 20 years:
- You sell: you repay the loan plus 5% of any capital gain. Money spent on renovations isn't deducted from the gain.
- You stop living there as your sole, primary residence: the City treats it as a sale, with the same repayment.
- You default on the agreement: the loan plus 5% of any gain is due.
- You sell at a loss: the City's FAQ says repayment of the loan is waived if the sale is at fair market value, confirmed by the City's own appraisal, and at arm's length.
- You choose to repay early: the City's FAQ says you can, at any time, with no interest penalty.
As an example, buy at $450,000 with a $22,500 loan and sell in year 6 for $500,000: you'd repay the $22,500 plus 5% of the $50,000 gain, $25,000 in total. Stay 20 years and you repay nothing.
Where $500,000 works in London and Middlesex
The cap matters more in London than the loan amount does. In August 2026, the benchmark home cost $616,900 in London North and $552,600 in London South, both over the cap, but $431,900 in London East. Across the LSTAR area, townhouses ($430,400) and condo apartments ($315,900) sat well under it.
- East London and White Oaks. The city's most accessible entry points for first-time buyers.
- Summerside and parts of the southeast. Newer builds at more accessible price points.
- Old East Village and Old South. Less square footage, more walkability and character.
- Townhouses and condos across the city. Often the way into an area where detached homes sit over the cap.
- Middlesex County. The program covers the county too, including Thames Centre (Dorchester) and Middlesex Centre (Komoka, Kilworth and Ilderton).
I'll pull current listings under the cap for the areas that fit your pre-approval. See London homes for sale by budget → London neighbourhood guide →
What it covers on a typical London East home
| On a $431,900 home (the London East benchmark) | Amount |
|---|---|
| City program assistance (5%) | $21,595 |
| Minimum down payment (5% of the first $500,000) | $21,595 |
| Ontario land transfer tax | $5,113 |
| First-time buyer refund (first-time buyers only) | Up to $4,000, leaving $1,113 |
| Municipal land transfer tax | None in London |
Because mortgage insurance is required under the program, budget for the premium and the provincial sales tax on it, which is paid in cash at closing and can't be added to the mortgage. Legal fees, title insurance, registration and the inspection are yours too. The City's FAQ says the land transfer tax refund isn't deducted from the assistance.
Source: London and St. Thomas Association of REALTORS® (LSTAR), August 2026 release; Ontario Ministry of Finance land transfer tax rates.
Stacking it with the Ontario and federal programs
- Ontario land transfer tax refund. Up to $4,000 for first-time buyers, usually claimed by your lawyer at closing. London has no municipal land transfer tax.
- First Home Savings Account (FHSA). Contribute up to $8,000 a year, to $40,000 in total, and withdraw it tax-free for a qualifying first home.
- RRSP Home Buyers' Plan. Withdraw up to $60,000 from your RRSP toward a first home, then repay it over time.
The City's limit on liquid assets is $100,000, so if you've built up savings in an FHSA or RRSP, ask the City how those balances are counted before you rely on both. The full comparison is in my guide to down payment assistance programs.