Find the best mortgage rate in London

As one of Ontario's largest cities outside of Toronto, London has a strong real estate and mortgage market. This is good news for London homebuyers because it gives you access to a wide range of mortgage products and mortgage rates, while still reaping the benefit of lower home prices than Downtown Toronto.

Below we've laid out some of the things you should consider before looking for a mortgage in London. When you're ready, you can compare personalized quotes for mortgage rates in London with the tools at the top of this page.

Comparing the best mortgage rates in London

The comparison tables at the top of this page list the best mortgage rates available in London, up to the minute. Comparing rates between multiple providers and mortgage brokers is the best thing you can do to get the lowest rate possible.

Of course, your personal rate may be different from the rates listed above. The rate you're eligible for can change based on things like your down payment, the price of the house, your credit score, which lender you choose, as well as what the property is being used for.

Luckily, you can get personalized quotes for mortgage rates without filling in a full mortgage application. Use the tools at the top of this page and we’ll provide you with personalized mortgage quotes from London lenders in under two minutes.

 

London closing costs

When applying for a new mortgage in London, you'll need to consider the closing costs associated with all property purchases. Most of these costs will need to be paid upfront, so you’ll need to save the cash to pay for them (in addition to your down payment).

Ontario Land Transfer Tax

When buying a home in London, you'll be subject to the Ontario Land Transfer Tax. This tax applies to most property purchases in the province. It's a marginal tax rate, based on the purchase price of the property. This tax will need to be paid in cash, and cannot be added to your mortgage.

Ontario land transfer tax rates are relatively high compared to other provinces, but not the highest in the country. Ontario land transfer tax rates are as follows:

Purchase Price of Home	Marginal Tax Rate
	First $55,000	0.5%
$55,000.01 to $250,000.00	1.0%
$250,000.01 to $400,000.00	1.5%
$400,000.01 to $2,000,000.00	2.0%
Over $2,000,000	2.5%

City of Toronto Land Transfer Tax

In addition to paying the Ontario land transfer tax, residents of the Greater Toronto Area may also be subject to an additional land transfer tax from the City of Toronto. While you won't need to pay this tax in London it's worth knowing about anyway.

Toronto land transfer tax rates are listed in the table below.

Purchase Price of Home	Marginal Tax Rate
	First $55,000	0.5%
$55,000.01 to $250,000.00	1.0%
$250,000.01 to $400,000.00	1.5%
$400,000.01 to $2,000,000.00	2.0%
Over $2,000,000	2.5%

CMHC Insurance

If your mortgage is an insured mortgage, you'll need to pay for mortgage default insurance. This will normally be included as part of your mortgage, so you won't need to provide it in cash.

Non-Resident Speculation Tax

Another Ontario tax that may or may not affect you is the Non-Resident Speculation Tax. This is a 15% tax on all property purchases by non-Canadian residents in the Golden Horseshoe area, which includes the GTA and Hamilton, stretching to the US border at Niagara. This does not include London, but it could be important if you aren't a Canadian resident considering where to purchase a home.

These are just some of the closing costs you’ll have to pay in London. Learn more on our closing costs education center page.

 

London first-time homebuyer rebates

Most of the first-time homebuyer programs in Canada are administered at the provincial level, and typically involve a full or partial rebate of the province's land transfer tax. In Ontario, a rebate of the provincial land transfer tax is available, as well as a rebate for the Toronto land transfer tax. This should come as a relief to London's first-time homebuyers, as land transfer taxes can significantly add to the cost of purchasing a home in Ontario.

Ontario first-time homebuyer rebate

The Ontario land transfer tax refund is equal to the full value of the land transfer tax up to a maximum of $4,000. Based on Ontario land transfer tax rates, the refund will fully cover the tax levied on houses of up to $368,000 in value.

To be eligible, you'll need to be a citizen or permanent resident of Canada, over 18 years old, have never owned a home before (this includes your spouse), and live in the home within 9 months of purchase.

Toronto first-time homebuyer rebate

First-time homebuyers in Toronto of new and resale homes are eligible to receive a rebate of the Toronto Land Transfer Tax, up to a maximum of $4,475. Eligibility for this program is similar to the provincial program outlined above.

Federal first-time homebuyer programs

In addition to land transfer tax rebates, new homebuyers in London may also be eligible for first-time homebuyer programs at the federal level, including:

• RRSP Home Buyer’s Plan: This allows you to borrow up to $35,000 from your RRSP for your down payment. The money must be paid back within 15 years.
• First-Time Home Buyer’s Tax Credit: This is a tax credit of up to $750, available when you file your taxes for the year in which you bought your first home.
• GST/HST New Housing Rebate: If your home is newly built, it may be subject to GST or HST. This rebate gives you some or all of that tax back.

Each of these schemes has eligibility criteria and additional rules that apply, which you'll need to investigate further before you apply for them.