London & Middlesex Down Payment Assistance: Up to $25,000
If you’re renting in London or Middlesex and trying to scrape together a down payment, there’s a local program built for exactly that. Here’s the honest rundown and how it works, who it’s for, and how to actually get it.
For a lot of the people I work with, the hardest part of buying a first home isn’t the monthly payment. It’s saving the down payment while you’re still writing a rent cheque every month. It can feel like you’re running in place.
If you’re renting in London or Middlesex County right now, there’s a local program built to help with exactly that. It’s called the Homeownership Down Payment Assistance Program, and it came back in late October 2025. Below is how it works, who qualifies, and how to give yourself the best shot at the money before it runs out.
The Program at a Glance
•What you get: up to 5% of the purchase price, to a maximum of $25,000
•Interest: none - 0%
•Forgiven after: 20 years
•Maximum home price: $500,000
What This Program Actually Is
The program gives you an interest-free, forgivable loan worth up to 5% of a home’s purchase price, to a maximum of $25,000. It’s funded by the Government of Canada, the Province of Ontario, and the City of London through the Ontario Priorities Housing Initiative, and the City of London runs it for buyers across both London and Middlesex County.
The part people love: the loan charges zero interest, and as long as you follow the rules, it’s fully forgiven after 20 years. It gets registered as a second mortgage on your home, but if you stay put and stick to the agreement, you never pay a cent of it back.
That 5% can be the difference between buying now and waiting years to save. In a market where prices rarely sit still, that’s a big deal.
One Quick Clarification
People call this a “first-time buyer” program, and it’s a great fit for first-timers, but that label isn’t quite right. It’s really a renter-to-owner program.
You can still qualify even if you’ve owned a home before, as long as you’re renting in London or Middlesex right now and don’t own any residential property today.
So if life changed and you’re back to renting and ready to buy again, the door may still be open. Hold onto that, because it matters later when we get to the land transfer tax rebate, which uses a much stricter rule.
Who Qualifies
To be eligible, you’ll need to check all of these boxes:
•You’re at least 18 years old.
•You don’t currently own a home or any residential property (including a cottage or recreational property), and you’re not in a spousal relationship with someone who does.
•Your total household liquid assets don’t exceed $100,000.
•The home you’re buying is priced at $500,000 or less.
•Your household income is within the limits: $95,000 gross for a single person, or $115,000 gross for a family (counting everyone in the household aged 18 and over).
•You’re currently renting in London or Middlesex County.
•You’ll live in the home for the life of the loan and won’t lease it out or rent rooms in it.
•You can get a mortgage from a recognized financial institution and cover your own closing costs, legal fees, and home inspection.
The home can be new or resale, detached, semi-detached, townhouse, stacked home, row house, or condo apartment, as long as it’s modest in size for the area. Mortgage insurance is required under the program.
The Catch Worth Understanding
I’d never let a client walk into this without knowing the fine print. The forgiveness only kicks in at the 20-year mark. Before then, there’s a clawback: if you sell or default, you repay the principal plus 5% of any capital gains you made. Money you put into renovations can’t be deducted from those gains, and if you stop living there as your primary residence within 20 years, that’s treated as a sale.
There’s a fair exception if you sell at a loss in an arm’s-length sale verified by appraisal, the repayment can be waived. And once you cross the 20-year line, you owe nothing at all.
How to Apply
Applications are processed first-come, first-served until the funding runs out. There’s no hard deadline, but the money is limited and this program gets a lot of attention, so timing matters.
Here’s the one most people miss: you apply after you have an accepted offer, not before. So step one is making sure you actually qualify on paper first, otherwise you could win an offer and then find out you’re not eligible.
That’s where I come in. Before you ever go shopping, let’s confirm you fit the criteria and get you mortgage-approved, so the application itself is just paperwork. Then the order of operations looks like this:
1.Make an offer on a home. Aim for a closing date 30 or more days out to leave room for processing.
2.Complete the application forms, available on the City of London’s program page.
3.Submit your package by email to [email protected], in person at City Hall (300 Dufferin Ave), or by mail.
What to have ready (for every household member 18 and over):
•Two recent pay stubs or a letter of employment
•Bank verification of income and assets, signed by your financial institution
•Birth certificate and proof of Canadian residency
•Your mortgage approval documents
•A copy of your current lease
Heads up: Effective April 5, 2026, you’ll also need a 2025 Notice of Assessment from the CRA. If you haven’t filed your 2025 taxes yet, get that done early and remember it applies to everyone in the household 18 and over.
Complete applications usually get a decision within about five business days. The City’s Housing Programs team is at 519-661-2489 ext. 7831.
Now the fun part!: Programs you can stack on top
This local program is just one layer. Part of my job is making sure you’re getting every bit of support you’re entitled to, and several of these work nicely together.
Ontario Land Transfer Tax Refund
Up to $4,000 back, which covers the full provincial land transfer tax on homes up to roughly $368,000. Your lawyer usually applies it right at closing. One thing to watch: this rebate uses a stricter rule than the down payment program; you must never have owned a home anywhere in the world, and your spouse can’t have owned one while you’ve been together. So it’s possible to qualify for the down payment assistance, but not this rebate.
First Home Savings Account (FHSA)
A registered account where your contributions are tax-deductible like an RRSP, and your withdrawals for a first home come out tax-free like a TFSA. You can put in up to $8,000 a year, up to a $40,000 lifetime cap. My favourite tip: open one even if you can’t contribute much yet, because your contribution room starts building the moment the account exists.
RRSP Home Buyers’ Plan (HBP)
This let's you take up to $60,000 tax-free out of your RRSP toward a first home, which you repay gradually over time.
First-Time Home Buyers’ Tax Credit
A credit you claim on your tax return for the year you buy.
Federal First-Time Home Buyers’ GST/HST Rebate
New as of spring 2026, this clears the federal HST on a newly built home valued up to $1 million, and phases out between $1 million and $1.5 million. Since the down payment program caps purchases at $500,000, this one only comes into play if you’re buying new construction. You can read more about this program HERE!
One Myth to Leave Behind
If you stumble on older articles promising a federal program that hands you 5% to 10% of your down payment, those are out of date. That was the CMHC First-Time Home Buyer Incentive, and it was discontinued back in March 2024. It trips a lot of people up, so don’t go chasing something that isn’t around anymore.
Have a question about your situation?
Buying your first home shouldn’t mean teaching yourself a stack of confusing government programs on your own. If you’re not sure whether you’d qualify, or you want help figuring out which of these fit your timeline, that’s exactly what I’m here for. 💜
Your story matters. Your mortgage should honour it.
This post is for informational purposes only and does not constitute legal, tax, or financial advice. Program details, amounts, and eligibility rules can change, and eligibility depends on the specifics of your situation. Always confirm current details with the City of London and consult a qualified professional before making decisions. Tiphereth Straker is a Licensed Mortgage Agent Level 2 (Lic. M21004493) operating under BRX Mortgage, FSRA #13463. Information current as of June 2026.
