Buying Your First Home in London, Ontario in Early 2027: Your Game Plan Starting Now

Updated October 2026. 

Maybe you've been saying "early next year" for a while now.

There's a number in your savings account that feels big and small at the same time. You've been scrolling listings at night, half excited and half wondering if you're getting ahead of yourselves. And there's a list of questions in the back of your mind that you haven't asked anyone yet, mostly because you're not sure where to start.

If that sounds like you, you're in the right place. It's completely normal to feel some nerves at this stage. Buying your first home is a big step, and wanting to get it right is a good instinct.

The encouraging part is this. If you're hoping to buy in London in January, February, or March of 2027, the next couple of months are when the most useful prep happens. Below, we'll walk you through what the London market looks like right now, the first-time buyer programs worth knowing about, and a simple month-by-month plan to get you from "someday" to keys in hand.

The Short Version

• London is currently in buyers' market territory, with more homes to choose from than in recent years.
• Get pre-approved before you start seriously house hunting. November or December is a good window for an early 2027 purchase.
• Open a First Home Savings Account (FHSA) before December 31, 2026 to start your contribution room.
• First-time buyers in Ontario can get up to $4,000 back on land transfer tax, and London has no extra municipal land transfer tax.
• Budget for closing costs and the age of the home's big-ticket items, not just the down payment.

What Does the London Real Estate Market Look Like Heading Into 2027?

Right now, buyers in London have more breathing room than they've had in a while.

According to the London and St. Thomas Association of REALTORS® (LSTAR), 561 homes sold across the region in September 2026, at an average price of $611,509. The MLS® benchmark price, which tracks the value of a "typical" home and is usually a better way to read trends than the average, was $552,500.

For first-time buyers, a few September numbers stand out:

• London East: average sale price of $456,814, benchmark price of $432,300
• Townhouses across the LSTAR region: benchmark price of $421,500
• Condo apartments across the LSTAR region: benchmark price of $317,100
• St. Thomas: average sale price of $544,865

The bigger story is supply. LSTAR reported 5.9 months of inventory in September and a sales-to-new-listings ratio of 34.7%. The Canadian Real Estate Association considers 45% to 65% a balanced market, so London is sitting on the buyer-friendly side.

In plain terms, that means more homes to choose from, less pressure to make snap decisions, and more room to include conditions like financing and a home inspection in your offer.

We also want to be honest with you. Nobody can promise what the market will look like in February. Spring is usually London's busiest season, and things can shift when more buyers show up. The best thing you can do is be ready, so that when the right home comes along, you can move with confidence instead of scrambling.

Step One: Get Pre-Approved Before You Fall in Love With a House

If we could give first-time buyers only one piece of advice, it would be to get pre-approved before you get serious about house hunting.

It's totally fine to go see a few homes to get a feel for what's out there. But we never want you to fall in love with a home that isn't realistic and end up heartbroken. A pre-approval tells you what you can comfortably spend, so you're shopping with a real number instead of a guess.

We keep the money side basic and connect our clients with a trusted mortgage professional for the details, but a few things are worth knowing going in:

• Minimum down payment: 5% of the first $500,000 of the purchase price, plus 10% of any portion above that. With less than 20% down, your mortgage will need default insurance.
• 30-year amortization: Since December 15, 2024, first-time buyers with an insured mortgage can choose a 30-year amortization instead of 25. That lowers your monthly payment, but there's a small extra insurance premium and you'll pay more interest over the life of the mortgage. Your lender can show you both sides.
• The stress test still applies. You'll need to qualify at a rate higher than the one you actually get.
• Rate holds: Many lenders will hold a pre-approved rate for a few months. If you're aiming for a February or March purchase, getting pre-approved in November or December can line up nicely. Ask your lender exactly how long their hold lasts.

What about interest rates? The Bank of Canada has two rate announcements scheduled in early 2027, on January 27 and March 3. Fixed mortgage rates tend to follow bond yields more than the Bank of Canada's rate, which is why they can move even when the Bank holds steady. Economists don't agree on what comes next, so we wouldn't try to time it. Plan around a payment you're comfortable with today.

First-Time Home Buyer Programs to Know About for 2027

There's real money available to first-time buyers in Ontario. This is the quick rundown in plain English.

First Home Savings Account (FHSA)

You can contribute up to $8,000 a year, to a lifetime maximum of $40,000. Contributions are tax-deductible like an RRSP, and withdrawals for your first home are tax-free like a TFSA. You don't pay it back.

The early 2027 tip: your contribution room only starts in the year you open the account. If you open an FHSA before December 31, 2026, you get 2026 room. If you don't use it, up to $8,000 carries forward, so you could contribute as much as $16,000 in 2027 instead of $8,000. If you're buying as a couple and you both qualify, you can each have your own FHSA.

RRSP Home Buyers' Plan (HBP)

You can withdraw up to $60,000 from your RRSP toward your first home without paying tax on it, as long as you repay it to your RRSP over 15 years. There's a grace period before repayments start, and those rules have changed a few times recently, so confirm the current details with your financial advisor.

The timing tip: money generally needs to sit in your RRSP for at least 90 days before you withdraw it under the HBP, or you can lose the tax deduction on that contribution. If you're planning to top up your RRSP for a February or March purchase, sooner is better.

Good news for planners: you can use the FHSA and the Home Buyers' Plan together on the same home.

Ontario Land Transfer Tax Refund

Land transfer tax is a closing cost that catches a lot of first-time buyers off guard. Ontario gives qualifying first-time buyers a refund of up to $4,000, and unlike Toronto, London doesn't charge a second municipal land transfer tax on top.

On a $500,000 home, it works out like this:

• Ontario land transfer tax: $6,475
• First-time buyer refund: $4,000
• What you'd pay: $2,475

In most cases your lawyer claims the refund when the purchase is registered, so it comes off at closing rather than coming back to you later.

Home Buyers' Amount

This is a $10,000 non-refundable tax credit, which works out to as much as $1,500 off your taxes. It's not life-changing, but it's worth claiming.

Buying a Brand-New Build? HST Rebates

Resale homes don't have HST, but brand-new homes do. First-time buyers can now get rebates covering up to the full 13% HST on a new home priced up to $1 million (up to $50,000 federally and up to $80,000 from Ontario). These apply to agreements signed from March 20, 2025 through the end of 2030. Ontario also has a temporary expanded rebate for all buyers of new homes on agreements signed by March 31, 2027.

One honest word of caution: a rebate only helps if the price makes sense in the first place. Before you sign with a builder, we'd still want to compare it to similar resale homes, and your lawyer should confirm you qualify.

"First-Time Buyer" Doesn't Mean the Same Thing Everywhere

Each program defines it a little differently. For the FHSA and the Home Buyers' Plan, it generally means you haven't lived in a home that you or your spouse owned in the current year or the four years before. Ontario's land transfer tax refund is stricter, and you can't have ever owned a home anywhere in the world. So it's possible to qualify for one program and not another. Your lawyer and financial advisor can confirm where you stand.

Budget for More Than the Down Payment

This is the part that surprises first-time buyers the most, so here's a few things you need to keep in mind.

Closing costs. Plan for legal fees, title insurance, land transfer tax (after your refund), a home inspection, and adjustments, like reimbursing the seller for property taxes they've already prepaid. If your mortgage is insured, Ontario also charges 8% PST on the insurance premium. That's due at closing and can't be added to your mortgage. Your lawyer will confirm the final numbers before you close.

Moving and setup. A truck or movers, utility hookups, and all the little things you didn't need as a renter, like a lawn mower, a snow shovel, and window coverings.

The house itself. We spend a lot of time on this with first-time buyers, because you don't have equity built up yet to soften a surprise. Before we write an offer, we'll look into the age of the big-ticket items: roof, furnace, air conditioner, windows, and the water heater. In Ontario it's common for water heaters to be rented, so it's worth knowing that monthly cost too. Finding out a roof has a couple of years left changes how you budget, and sometimes how we negotiate.

When the home inspection comes back, remember that it's due diligence, not a list of things to make the seller fix. Every home has something. The goal is to understand exactly what you're buying.

Your Month-by-Month Plan for an Early 2027 Purchase

October and November 2026

1. Open your FHSA if you haven't already.
2. Check your RRSP and decide whether you'll use the Home Buyers' Plan. Keep the 90-day rule in mind.
3. Gather your documents (recent pay stubs, an employment letter, notices of assessment if you're self-employed, and statements showing your down payment savings) and reach out to a mortgage professional.
4. Have the "what matters most" conversation as a couple: bedrooms, commute, yard, budget ceiling, and where you see yourselves in five years.

December 2026

5. Get your pre-approval in writing and ask how long your rate hold lasts.
6. Hold off on new credit or big purchases, like a car loan or financed furniture. They can affect your approval.
7. Make your 2026 FHSA contribution by December 31 if it fits your budget.

January 2027

8. Start touring homes seriously. Winter showings can tell you a lot, like how warm a house stays and how well the furnace keeps up.
9. Line up a home inspector and a real estate lawyer so you're not scrambling when you find the one. We're happy to share who we recommend.

February and March 2027

10. Before we write an offer, we'll run a CMA so you know what the home is actually worth, not just what it's listed for.
11. We write an offer with the conditions that protect you, usually financing and a home inspection.
12. Once it's firm, we'll walk you through the deposit, your lender, your lawyer, and closing, one step at a time.

Where First-Time Buyers Are Finding Value Around London

Every buyer's wish list is different, but this is where we see a lot of first-time buyers landing:

• East London, where average prices sit well below the regional average
• Townhomes and semis across the city, which can be a more affordable way into neighbourhoods where detached homes are out of reach
• Condos, which have the lowest entry point. Just factor in the monthly condo fees and have your lawyer review the status certificate.
• Smaller communities nearby, like St. Thomas, if a bit more of a commute is a trade-off you're open to

If kids are somewhere in your five-year plan, it's worth thinking about that now. An extra bedroom, a fenced yard, or being close to a good school can matter a lot sooner than you'd expect. Your first home doesn't need to be your forever home, but it should fit the next chapter of your life.

How We Help First-Time Buyers in London

Helping people buy their first home is one of our favourite parts of this job. We know how much your first home shapes what comes next, and we want you to walk away confident you made a great decision.

This is what working together looks like:

1. No pressure, no rushing. We go at your pace, and we'll tell you honestly if a home isn't the right fit.
2. Due diligence on every home you're serious about. If there's a red flag, we'll tell you, even if it means walking away.
3. A CMA before every offer, so you know what a home is actually worth.
4. Both of you in the loop. We often set up a group chat with both partners so nobody misses anything.
5. Taking things off your plate. Booking the inspection, sending documents to your lender or lawyer, dropping off a deposit. If we can do it for you, we will.
6. Stage-by-stage updates, so you always know what's next.

Frequently Asked Questions

How much do I need for a down payment on a first home in London, Ontario?

The minimum down payment in Canada is 5% on the first $500,000 and 10% on the portion above $500,000. On a $450,000 home, that is $22,500. On a $550,000 home, it is $30,000 ($25,000 on the first $500,000 plus $5,000 on the remaining $50,000). Remember to budget separately for closing costs.

Is early 2027 a good time to buy a first home in London?

As of September 2026, London was in buyers' market territory, with 5.9 months of inventory according to LSTAR. That generally means more choice and less competition. Nobody can predict exactly where prices or rates will go, though. The right time is when you're financially ready and you find a home that fits.

Do first-time buyers pay land transfer tax in London, Ontario?

Yes, but qualifying first-time buyers get a refund of up to $4,000 on Ontario's land transfer tax, and London doesn't charge a separate municipal land transfer tax. On a $500,000 home, that brings the tax down from $6,475 to $2,475.

Can I use my FHSA and the RRSP Home Buyers' Plan for the same home?

Yes. You can combine withdrawals from both your First Home Savings Account (FHSA) and the RRSP Home Buyers' Plan (HBP) toward the purchase of the same home, provided you meet the qualification criteria for both programs.

What should I do first if I want to buy in early 2027?

Talk to a mortgage professional about a pre-approval, open an FHSA before the end of 2026 if you haven't already, and start a conversation with a local REALTOR® about neighbourhoods and timing.

Let's Talk About Your Plan

If early 2027 is your target, now is a great time to start the conversation. There's no commitment and no pressure, just a chance to talk through your plan, answer your questions, and send you our buyer guide.

You can reach us through sidewalkrealestate.ca or email Zach directly at zach@sidewalkrealestate.ca. Let us know if you have any questions, we're happy to answer anything that is unclear.

Buying your first home is exciting, and we'd love to help you get there.

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Market statistics are from the London and St. Thomas Association of REALTORS® September 2026 release. This post is general information and not financial, legal, or tax advice. Program rules change, so please confirm the details with your lender, lawyer, or financial advisor before making decisions.

About the Sidewalk Realty Team: The Sidewalk Realty Team is a London, Ontario real estate team with Thrive Realty Group Inc., Brokerage, led by Zachary Timmerman, REALTOR®. Since 2019, Zach has helped first-time buyers, move-up families, and downsizers buy and sell with confidence, and the team is all about keeping real estate simple.