Buy Your First Home

Stewart Blair

4 days ago

🏡 City of London Relaunches Down Payment Assistance Program

Help to Buy Your First Home in London, Ontario

By Elevate Real Estate Group | October 2025

Helping More Londoners Become Homeowners

Ready to buy your first home? Breaking into the housing market has become increasingly challenging for many Londoners. Rising prices, tighter lending rules, and higher interest rates have made saving for a down payment one of the most significant barriers to Londoners buying their first home.

To help address this, the City of London has relaunched its Homeownership Down Payment Assistance Program — an initiative designed to help eligible renters leap into homeownership.

The program provides interest-free, forgivable loans covering up to five percent of a home’s purchase price, giving first-time buyers the extra boost they need to secure a property in today’s market.

How the Program Works

The Homeownership Down Payment Assistance Program offers loans that are:

💰 Interest-Free & Forgivable: The loan is automatically forgiven after 20 years if the homeowner continues to occupy the home.
🏡 Flexible in Amount: Covers 5 % of the home’s purchase price, up to $25,000 on a $500,000 home.
🔁 Repayable Upon Sale: If the property is sold before the 20-year term or at a profit, the City recovers the loan plus 5 % of the capital gain.
📋 Limited Availability: Funding is distributed on a first-come, first-served basis, with an estimated 100–150 households expected to benefit from the current $3.1 million program fund.

Who’s Eligible

To qualify, applicants must:

Be at least 18 years old and currently renting in London or Middlesex County
Have never owned residential property anywhere in Canada
Earn a household income below $95,000 (individual) or $115,000 (family)
Hold liquid assets under $100,000
Be pre-approved for a mortgage through a recognized financial institution
Purchase a home priced at $500,000 or less
Intend to live in the home for the full loan period
Be able to cover closing costs and not lease out the property

These conditions ensure the funds go directly to helping local renters transition into sustainable homeownership.

Why This Matters for London’s Housing Market

London’s housing landscape has changed dramatically since the program ran from 2008 to 2013. That earlier version distributed $2.3 million in loans to 270 families — and the City actually received more than that amount back through repayments and accrued interest.

Learn More or Apply

The City of London is currently accepting applications for this program.
To see the full eligibility details, documentation requirements, and to apply directly, visit the City’s official page:

👉 City of London Homeownership Down Payment Assistance Program

Ready to Take the Next Step?

If you’re planning to buy your first home in London, Ontario, our team at Elevate Real Estate Group can help you navigate every part of the process — from finding qualified listings under $500,000 to connecting you with trusted mortgage professionals.