01 — PURCHASE
Buying a London home
Compare your budget, down payment, mortgage terms, closing costs and property-specific requirements before making an offer.
Purchase mortgages →London, Ontario mortgage guidance
London, Ontario Mortgages: Find the Right Financing for Your Next Move
Buying your first home in London? Renewing an existing mortgage, refinancing to access equity, or financing a rental property? Your best option depends on your finances, the property and the total cost of borrowing.
MortgageSaver helps you understand and compare home purchase, pre-approval, renewal, refinance and home equity mortgage options in London, Ontario. From an older house in Old East Village to a southwest London new build, we focus on real property considerations—not just advertised interest rates.
Local property considerations
Purchase, renewal and refinance
Clear financing comparisons
Property
House, condo, townhouse, rental or additional unit
Mortgage goal
Purchase, renewal, refinance or equity
Compare
Qualification, total costs and flexibility
Start with the actual property
Why your London property matters as much as your mortgage application
Lenders review your income, credit, debts and down payment. They also need to accept the home as suitable security for the mortgage.
That makes property type, condition, legal use and monthly ownership costs important—particularly when you're comparing older homes, condominiums, rentals or additional residential units.
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01
Older houses may need extra checks Foundations, moisture, wiring, plumbing, additions and past renovations may influence insurance, appraisal or repair planning.
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02
Rental income needs documentation A lender may assess the property's legal use, rental income, expenses and supporting documents before counting rent toward qualification.
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03
Condominiums have different costs Monthly condo fees, the status certificate, reserve-fund information and corporation finances belong in your due diligence.
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04
Affordability goes beyond the mortgage payment Property taxes, insurance, heating, maintenance, commuting and likely repairs all affect your real monthly budget.
London neighbourhood insights
What to check in London neighbourhoods before you finance
London's housing stock varies across the city. The area can help you identify relevant questions, but financing decisions depend on the specific property and borrower.
Neighbourhood context is a starting point.
The property's condition, occupancy, appraisal, documentation and lender requirements determine the final financing decision.
Downtown & central London
Older detached and semi-detached homes, conversions, additions and condo units may call for closer review of permits, property condition, insurance and legal use.
Old East Village & east London
Established housing and renovated properties can make foundation condition, electrical systems, plumbing, moisture and heritage status important questions.
Byron & west London
For detached houses, townhouses and established neighbourhoods, compare property condition, annual taxes, maintenance and complete ownership costs.
Southwest London
Newer developments and builder purchases can introduce construction completion dates, upgrades, builder adjustments and pre-closing mortgage requalification.
North London
Condominiums, detached homes and properties near Western University can create different considerations for rental use, condo documents and property expenses.
Rural-edge properties
Larger lots, private servicing, outbuildings and conservation-related restrictions may require additional appraisal, insurance or property review.
Choose your next step
Find the right mortgage path for your next move in London
Start with your transaction, not a headline rate. Each mortgage option has different eligibility requirements, costs and repayment features.
02 — PRE-APPROVAL
Getting pre-approved
Review income, debts, credit and your available down payment before shopping. A pre-approval is not a guarantee of final approval.
Mortgage pre-approval →03 — RENEWAL
Renewing your mortgage
Compare your existing lender's renewal offer against available rates, terms, payment options and potential switching costs.
Mortgage renewal →04 — REFINANCE
Refinancing
Evaluate mortgage penalties, new borrowing costs, equity, amortization and repayment flexibility before replacing your existing mortgage.
Mortgage refinance →05 — HOME EQUITY
Accessing home equity
Compare HELOCs, refinancing, home equity loans and second mortgages based on borrowing needs, costs and repayment plans.
Explore HELOC options →06 — INVESTMENT
Financing a rental property
Consider down payment, qualifying rental income, property expenses, licensing and legal use when planning investment financing.
Investment mortgages →Make a more informed mortgage decision
Tell us your goal and the type of London property.
Whether you're buying, renewing or accessing equity, start by comparing the terms and costs that matter to your situation.
London rental property financing
Buying a London rental? Check licensing and financing separately
London has a Residential Rental Unit Licensing program that covers many smaller rental properties. The rules depend on the building type, unit configuration, use and applicable exemptions.
A property may satisfy municipal requirements without satisfying a lender's rental-income or underwriting guidelines.
Important distinction
A rental licence is not a mortgage approval. Confirm both the municipal requirements and lender conditions before committing.
Small rental buildings
London's licensing framework generally covers buildings containing four or fewer rental units, subject to definitions and exemptions.
Converted dwellings
Some converted dwellings with five or more units also fall within the City's licensing rules.
Owner occupancy
Living in one unit does not automatically remove the licensing requirements for the other units.
Building exemptions
Some apartment-building and townhouse configurations may qualify for exemptions. Check the specific building.
Inspections
Licensing can involve zoning, fire safety and property-standards reviews, depending on the circumstances.
Rental income for a mortgage
Lenders may request leases, appraisals or market-rent evidence and may recognize only part of the rental income.
Additional residential units
Buying or financing a home with an additional residential unit
A basement apartment, secondary suite or other additional residential unit may create extra income opportunities, but its permitted use and financing treatment need separate verification.
London's ARU rules changed during 2026. Check current zoning, interim controls and building requirements for the property address.
Do not rely solely on listing descriptions.
Terms such as “income potential,” “granny suite” or “basement apartment” do not establish that a unit is legally permitted or suitable for lender underwriting.
Zoning
Confirm the permitted number, location, size and configuration of additional units for that property.
Building permits
Check whether additions, conversions or renovations required permits, drawings and final inspections.
Rental licence
Determine whether the intended rental use falls within London's Residential Rental Unit Licensing requirements.
Insurance
Confirm that the insurer has accurate information about the number of units and their occupancy.
Rental income
Ask how the proposed lender will document and calculate qualifying rent before relying on it.
Listing accuracy
Verify the property's permitted use and documentation independently rather than relying only on advertising claims.
See the City of London Additional Residential Units resource.
London homebuying costs
Budget for the full cost of buying in London, Ontario
Your down payment is only one part of the purchase budget. Legal fees, land transfer tax, insurance, inspections, moving costs and adjustments can add to the amount required at closing.
Up to $4,000
Eligible Ontario first-time homebuyers may receive a provincial land transfer tax refund of up to $4,000, subject to eligibility requirements.
Land transfer tax
Ontario land transfer tax generally applies to London property purchases. London does not have Toronto's additional municipal land transfer tax.
Legal fees
Budget for your lawyer, title review, registration, title insurance and relevant closing adjustments.
Inspection
A home inspection can help assess older houses, previous renovations, moisture, visible defects and immediate repair needs.
Appraisal
Your lender may require an appraisal depending on the property, loan type and available valuation information.
Property insurance
Confirm insurability and coverage before closing, especially where the home is older or contains rental units.
After-closing cash
Plan for moving, appliances, utility setup, maintenance and unexpected repairs without relying on your entire cash reserve.
First-time buyer eligibility varies between programs.
Qualifying for one federal or provincial benefit does not automatically mean you qualify for Ontario's land transfer tax refund.
Read the Canadian down payment guide and explore first-time homebuyer mortgage options.
Before removing conditions
Four property checks that can prevent closing surprises
These issues do not automatically make a property ineligible for financing. They can affect appraisal, insurance, permitted use, renovation plans and lender documentation.
Check the property, not just the listing.
Use qualified legal, inspection, municipal and insurance professionals where appropriate.
Heritage status
London distinguishes listed properties, individually designated properties and Heritage Conservation Districts. Alteration permissions can vary.
Conservation areas
Some properties may be subject to conservation-authority restrictions affecting development, additions or site work.
Older renovations
Verify relevant permits, inspection status, electrical changes, structural work and the condition of completed additions.
Rental configuration
Confirm the number of legal units, rental licensing, occupancy, insurance and how lenders assess the property's rental income.
Mortgage affordability
How the mortgage stress test affects London affordability
At many federally regulated lenders, mortgage qualification uses a rate above the actual contract rate to assess whether you can manage payments if borrowing costs rise.
5.25% or +2%
For most newly underwritten uninsured mortgages at federally regulated lenders, the minimum qualifying rate is the greater of 5.25% or the contract rate plus two percentage points, subject to applicable rules and exceptions.
Income
Employment earnings, self-employment documentation, variable income and acceptable rental income may be considered.
Existing debts
Car loans, credit cards, lines of credit, student debt and other ongoing obligations can reduce borrowing capacity.
Property taxes
Estimated property taxes form part of housing-cost calculations and can affect qualification.
Condo expenses
Applicable portions of condominium fees may be included in lender affordability calculations.
Down payment
Your savings, source of funds, loan-to-value ratio and mortgage insurance requirements can change your options.
Lender policies
Qualification rules can vary by lender and mortgage transaction. Eligible straight switches may be treated differently from new borrowing.
Compare by property type
Compare lender questions by London property type
The mortgage process can differ depending on whether you are buying a detached home, condominium, townhouse or income-producing property.
| Property type | What to review | Mortgage planning focus |
|---|---|---|
| Detached or semi-detached home | Property condition, repairs, appraisal, insurance and property taxes. | House mortgages |
| Condominium | Condo fees, status certificate, reserve fund and corporation finances. | Condo mortgages |
| Townhouse | Freehold or condominium ownership, maintenance obligations and fees. | Townhouse mortgages |
| Rental or multi-unit property | Legal units, licensing, leases, insurance, expenses and rental-income qualification. | Investment underwriting and property-specific checks. |
| New construction | Builder contract, deposit, completion timing, upgrades and closing adjustments. | Mortgage commitment timing and requalification before closing. |
Compare more than interest
Look beyond the mortgage rate: compare the full terms
An advertised low rate is not necessarily the lowest-cost mortgage for your circumstances. Payment flexibility, early repayment penalties, fees and loan terms can matter just as much.
Compare the mortgage based on what could happen if you renew, sell, refinance or move before the term ends.
Fixed or variable
Consider payment certainty, changing interest costs, your risk tolerance and the lender's variable-rate structure.
Prepayment privileges
Review annual lump-sum limits and allowed payment increases if you expect to repay your mortgage faster.
Early-exit penalties
Learn how the lender calculates charges if you break your mortgage term before maturity.
Portability
Check whether your mortgage could be transferred to another property and what conditions apply.
Switching lenders
Review qualification, discharge, appraisal, legal and registration requirements before accepting a renewal offer.
The lowest advertised rate is not a guaranteed approval.
Actual offers depend on the borrower, property, transaction, lender and market conditions.
Compare Canadian mortgage rates, Ontario mortgage rates and fixed vs. variable mortgages.
Get prepared
Documents to prepare for a London mortgage review
Having accurate financial and property information available helps a lender or mortgage professional assess your application and identify missing details early.
View the mortgage documents checklist →Identification
Government-issued identification and the personal information requested for the application.
Income
Recent pay statements, employment confirmation, tax documents or business financial records where applicable.
Down payment
Account statements, source-of-funds evidence and gift documentation where required.
Existing liabilities
Mortgage statements, credit obligations, property expenses and outstanding loan balances.
Property details
Purchase agreement, listing information, taxes, condominium documents and rental details as applicable.
Refinance or renewal
Existing mortgage balance, rate, maturity date, payment amount and potential penalty information.
More mortgage resources
Useful London and Ontario mortgage resources
Compare Ontario mortgage information, explore other Canadian markets and review detailed financing guides before making your next decision.
London mortgage FAQs
London mortgage questions, answered clearly
Practical answers about purchasing, qualifying, financing rentals, renewal and accessing equity in London, Ontario.
What should I consider when getting a mortgage in London, Ontario?
Start with the purchase price or property value, property type, mortgage purpose, down payment or available equity, income, debts and credit. Then include property taxes, applicable condominium fees, closing costs, condition, occupancy and any rental or additional residential units.
Can rental income help me qualify for a London mortgage?
Potentially. Different lenders use different rental-income calculations and supporting documents. A lender may request a lease, market-rent opinion, appraisal or other evidence and may use only a portion of the qualifying rent.
Do London rental properties require a rental licence?
London has a Residential Rental Unit Licensing program covering many smaller residential rental properties. The City's rules generally include buildings with four or fewer rental units and certain converted dwellings, while specific exemptions also exist. Confirm requirements for the exact property with the City.
What should I check when buying a London property with an additional residential unit?
Review current zoning rules, building permits and inspections, unit configuration, applicable rental licensing, insurance and the proposed lender's treatment of rental income. London's ARU rules changed during 2026, so address-specific requirements need to be confirmed.
What should I know about buying a London heritage property?
London distinguishes non-designated heritage-listed properties, individually designated properties and properties within Heritage Conservation Districts. Alterations affecting designated heritage attributes may require a Heritage Alteration Permit.
How much is Ontario's first-time homebuyer land transfer tax refund?
Eligible Ontario first-time homebuyers may receive a provincial land transfer tax refund of up to $4,000. Eligibility depends on the actual purchasers and the program's specific requirements.
Does mortgage pre-approval guarantee the London property will receive final approval?
No. Pre-approval provides a working borrowing range based on information reviewed at that stage. Final approval depends on the completed application and lender acceptance of the actual property, including appraisal and insurance where required.
How does the mortgage stress test affect London borrowers?
For most newly underwritten uninsured mortgages at federally regulated lenders, OSFI's minimum qualifying rate is the greater of 5.25% or the mortgage contract rate plus two percentage points. Income, debts, taxes, heating and applicable condominium expenses also affect qualification.
Can I switch lenders when my London mortgage renews?
Potentially. Begin comparing options before maturity to allow time for document review and any required underwriting or legal work. OSFI does not expect federally regulated lenders to apply the uninsured minimum qualifying rate to certain eligible straight switches when neither the loan amount nor remaining amortization increases.
Is a HELOC or mortgage refinance better for accessing equity?
A HELOC offers revolving access to available equity, normally at a variable interest rate. A refinance restructures your mortgage and can include additional borrowing in an amortized loan. Compare mortgage penalties, borrowing needs and repayment plans. See HELOC vs. mortgage refinance.
Your next mortgage decision
Ready to compare your London mortgage options?
Tell us whether you're purchasing, renewing, switching lenders, refinancing or accessing equity. Include the approximate purchase price or property value, your down payment or available equity, income situation and timeline.
If the property includes a rental unit, condominium ownership or unusual property features, include those details so the financing discussion reflects the actual property.
Official resources:
The City of London provides information about
rental licensing
and
additional residential units.
Ontario explains
first-time homebuyer land transfer tax refunds,
while
OSFI explains the uninsured mortgage qualifying rate.
General information only:
This London, Ontario mortgage guide is educational and does not constitute approval, a lender commitment, legal advice, tax advice, municipal-compliance advice or a guarantee of a mortgage rate or product. Mortgage eligibility, rental-income treatment, property acceptance, appraisal, insurance, fees and final conditions depend on the borrower, property, documentation and lender criteria. Municipal rules can change and should be confirmed for the specific address. Read the
MortgageSaver disclaimer
and
privacy policy
before sharing personal information.