How Much Do You Need for a Down Payment in London, Ontario?

If you’re starting your home-buying journey, one of the first questions you’ll ask is:“How much do I actually need for a down payment?”The answer depends on the price of the home you’re buying — but the rules are the same whether you’re purchasing in Oakridge, Byron, Stoney Creek, or anywhere else in London.

Here’s a simple, clear breakdown based on today’s real market numbers.

1. The Basic Down Payment Rules in Canada

The Government of Canada sets down payment minimums based on price tiers:

🏠 For homes under $500,000:

5% of the purchase price.

🏠 For the portion between $500,000 and $999,999:

5% on the first $500,00010% on the remaining amount.

🏠 For homes $1,000,000 and above:

20% minimum, no exceptions.

2. Real Examples Using London’s 2025 Home Prices

LSTAR reports that the average home price in London in late 2025 is roughly $620,000.

Here’s what that looks like:

Example: Average $620,000 home

• 5% on first $500,000 = $25,000

• 10% on remaining $120,000 = $12,000Total minimum down payment = $37,000

Not as intimidating as many buyers think.

Townhomes & condos — Typically $350,000–$450,000

At these values, down payments often look like:

• $17,500–$22,500Perfect for first-time buyers using an FHSA or RRSP Home Buyer’s Plan.

Detached homes in family neighbourhoods — $600,000–$800,000+

Down payment ranges:

• $35,000–$60,000+ depending on priceThese buyers often combine savings with a gift or equity from a previous sale.

3. How Much Should You Really Put Down?

Minimums are one thing — strategy is another.

More down payment can mean:

✔ Lower mortgage payments

✔ Less interest over time

✔ Better chance of approval

✔ Avoiding mortgage default insurance (20%+ down)

But many buyers succeed with the minimum. The key is to make a plan based on your life, not just your mortgage rate.

4. What About First-Time Buyers?

2024–2025 introduced new tools that make things easier:

FHSA (First Home Savings Account)

Tax-deductible contributions + tax-free withdrawals.You can save $8,000 per year, up to $40,000 total.

Home Buyer’s Plan (HBP)

Withdraw up to $60,000 from your RRSP tax-free to use as a down payment.

Many London buyers combine both — fast-tracking their ability to get into the market.

Bottom Line

Your down payment doesn’t need to be overwhelming.Once you know the numbers, the path becomes much clearer — especially with the right plan.

If you want help calculating your exact down payment options or seeing what fits your budget in today’s market, I’d be happy to walk through it with you.

Justin Skrypnyk

Real Estate Broker

519-639-5176