Looking for the best mortgage rates in London? As of January 2026, London is experiencing a buyer’s market with increased negotiating power. The average home price sits at $570,000, -6.0% from last year. Whether you’re a first-time buyer, refinancing, or investing, we’ll help you navigate the local market and find the best rates.
London Real Estate Market Snapshot (January 2026)
| Metric | Current Value | Notes |
|---|---|---|
| Average Home Price | $570,000 | -6.0% from last year |
| Average Condo Price | $370,000 | Entry-level option |
| Price Trend (YoY) | ↓ -6.0% | Year-over-year change |
| Days on Market | 40 days | Average time to sell |
| Market Conditions | Buyer | Current market type |
| Sales-to-Listing Ratio | 32% | Market activity level |
Down Payment Requirements
| Property Type | Price | Min. Down Payment | Amount Needed |
|---|---|---|---|
| Average Home | $570,000 | 5-10% | $32,000 (CMHC insurable) |
| Average Condo | $370,000 | 5% | $18,500 (CMHC insurable) |
| With 20% Down | $570,000 | 20% | $114,000 (no CMHC premium) |
London Mortgage Market Overview 2026
London represents exceptional value in Ontario’s real estate landscape. At $580,000 average, first-time buyers need only $32,500 down (5% with CMHC insurance) to enter the market. The city has seen a 5.1% correction, creating a strong buyer’s market. Western University and healthcare sector employment provide stability. London attracts remote workers and GTA refugees seeking affordable, family-friendly communities.
Top Mortgage Lenders in London
| Lender | Type | Best For |
|---|---|---|
| TD Canada Trust | Big 5 Bank | Wide branch network, full service |
| RBC | Big 5 Bank | Large mortgages, premium clients |
| Libro Credit Union | Credit Union | Southwestern Ontario focus |
| DUCA | Credit Union | GTA focused, member benefits |
| Meridian | Lender | Competitive rates available |
💡 Pro tip: Work with a mortgage broker to compare rates from multiple lenders at once.
London Neighborhoods Comparison
| Neighborhood | Best For | Price Range |
|---|---|---|
| Downtown | First-time buyers | Premium ($754,000+) |
| Old North | Families | Above average ($638,000+) |
| Byron | Investors | Mid-range ($493,000-638,000) |
| Masonville | Professionals | Mid-range ($493,000-638,000) |
| Hyde Park | Retirees | Entry-level ($406,000-522,000) |
| Wortley Village | Students | Entry-level ($406,000-522,000) |
Mortgage Tips by Buyer Type
| Buyer Type | Local Tip for London | Key Consideration |
|---|---|---|
| 🏠 First-Time Buyers | London offers some of Ontario's best first-time buyer value with minimal down payment requirements. | Build credit, save for down payment |
| 🔄 Refinancing | Lower prices mean faster equity building—consider refinancing for rental property investments. | Consider break costs vs savings |
| 📈 Investors | Western University and Fanshawe College create consistent student rental demand. | 20% down required, higher rates |
Today’s Best Rates in London
Today's Best Mortgage Rates
Compare discounted rates from Canada's top lenders. These are actual rates you can get - not posted bank rates.
Featured Mortgage Rates
Best discounted rates available today – sorted by lowest rate
| Term | Lender | Best Rate | You Save |
|---|---|---|---|
| 5-Year Variable | RFA Mortgage | 3.55% | 0.90% |
| 3-Year Fixed | National Bank | 3.74% | 2.35% |
| 4-Year Fixed | National Bank | 3.89% | 2.10% |
| 5-Year Fixed | CMLS Financial | 3.89% | 2.00% |
| 2-Year Fixed | CMLS Financial | 4.34% | 1.95% |
| 7-Year Fixed | First National | 4.74% | 1.45% |
| 1-Year Fixed | RFA Mortgage | 4.84% | 1.65% |
| 10-Year Fixed | First National | 5.14% | 1.65% |
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Get Pre-Approved Today* Rates shown are discounted rates for insured mortgages. Rates may vary based on credit profile, down payment, and property type. Subject to change without notice. OAC.
Frequently Asked Questions About London Mortgages
Get answers to the most common mortgage questions for London home buyers, including down payments, rates, and qualification requirements.
Why is London so much cheaper than the GTA?
London lacks the transit connectivity and employment density of the GTA. However, remote work has changed this equation—many buyers now prioritize affordability and space over commute times.
What down payment do I need for a London home?
For a typical London home at $580,000, the minimum down payment is 5% on the first $500,000 plus 10% on the remainder. That works out to approximately $33,000. First-time buyers can use RRSP/FHSA funds to reach this amount.
Is London a buyer's market?
London is currently a buyer’s market, meaning more homes for sale than buyers. This gives you negotiating power on price, conditions, and closing dates. Take your time to find the right property and don’t be afraid to negotiate.
What are the best mortgage lenders in London?
Popular lenders in London include TD Canada Trust, RBC, Libro Credit Union. However, mortgage brokers often access better rates from monoline lenders. Compare at least 3-4 options before committing—rate differences of 0.25% save thousands over your term.
Is London good for real estate investment?
Western University and Fanshawe College create consistent student rental demand. Investment properties require 20% minimum down payment. Calculate cash flow carefully considering property taxes, insurance, maintenance, and potential vacancies.
What is the Ontario Land Transfer Tax?
Ontario LTT is 0.5% on first $55,000, 1% on $55,000-$250,000, 1.5% on $250,000-$400,000, 2% on $400,000-$2M, and 2.5% above $2M. First-time buyers get a rebate up to $4,000. Toronto buyers pay an additional Municipal LTT at similar rates.
Is there additional tax for Toronto home buyers?
Yes, Toronto has a Municipal Land Transfer Tax in addition to Ontario’s LTT. First-time buyers can claim rebates on both, saving up to $8,475 combined. Non-residents also pay the provincial Non-Resident Speculation Tax (25%) in certain areas.
What are the best mortgage lenders in Ontario?
Ontario has Canada’s most competitive mortgage market. Credit unions like Meridian and DUCA offer competitive rates, while monoline lenders (First National, MCAP) often beat bank rates. Working with a mortgage broker accesses all options.
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