Down payment help for first-time buyers in London, Ontario

Saving a down payment is the hardest part of buying a first home. The good news is that a first-time buyer in London can use several federal, provincial and local programs, and most people use fewer than they qualify for. This guide explains each one in plain language.

FHSA RRSP Home Buyers' Plan Land transfer tax refund Home buyers' tax credit City of London program

The programs at a glance

$40,000

First Home Savings Account

Lifetime contribution limit per person. Tax-deductible going in, tax-free coming out for a first home.

How the FHSA works →

$60,000

RRSP Home Buyers' Plan

Per person, withdrawn tax-free from your RRSP and repaid over 15 years.

How the HBP works →

$4,000

Ontario land transfer tax refund

Maximum refund of land transfer tax for eligible first-time buyers.

How the refund works →

$1,500

First-Time Home Buyers' Tax Credit

A federal non-refundable credit, claimed on your tax return for the year you buy.

How the credit works →

City of London assistance

A forgivable down payment loan for eligible moderate-income renters, when intake is open.

How the City program works →

GST

New home rebates

First-time buyers of new homes may recover the GST, plus Ontario rebates.

See New Build London →

Amounts are program maximums as of our last review (October 30, 2026). Always confirm current rules.

Who counts as a "first-time buyer"?

This trips people up, because each program has its own definition:

The FHSA and the RRSP Home Buyers' Plan use a four-year look-back. Generally, you qualify if you didn't live in a home that you (or, in most cases, your spouse or common-law partner) owned during a set period covering the current year and the previous four calendar years.
The federal First-Time Home Buyers' Tax Credit uses a similar four-year test.
Ontario's land transfer tax refund is stricter. You must never have owned a home, or an interest in a home, anywhere in the world. Special rules apply to spouses.
The City of London program has its own criteria, including not currently owning a home.

So someone who sold a home five years ago might qualify for the FHSA and HBP, but not for Ontario's land transfer tax refund.

How much can a couple put together?

Many programs are per person. A couple who are both first-time buyers could potentially combine:

Two FHSAs, up to $40,000 each in contributions, plus any investment growth
Two RRSP Home Buyers' Plan withdrawals, up to $60,000 each, if they have the RRSP savings
Their regular savings, including TFSAs

That's in addition to the land transfer tax refund and tax credit, which reduce costs rather than add to the down payment. The real limit is how much you can actually save, and how much you'd want to draw from retirement savings. Read using the FHSA, RRSP and TFSA together for the strategy.

How much do you actually need?

In Canada, the minimum down payment for a home under $500,000 is 5%. Above that, it's 5% of the first $500,000 plus 10% of the rest, up to $1.5 million. With less than 20% down, you'll pay mortgage default insurance. Our down payment rules page has worked examples and explains the newer 30-year amortization option for first-time buyers.

On top of the down payment, budget for closing costs: land transfer tax (reduced by your refund), legal fees, title insurance, a home inspection and moving. Lenders usually want to see that you've set aside money for these too.

Start with the account, not the house. FHSA contribution room only starts accumulating once you open an account. Even if you're years away from buying, opening one now, even with a small deposit, starts the clock.

Buying a new build?

First-time buyers of newly built homes have extra options: the federal first-time home buyers' GST rebate, Ontario's new housing rebate, and 30-year insured amortizations. These can change the math considerably, so if you're open to new construction, look into them before you decide between new and resale.

Where to start

Check which programs you qualify for, using the first-time buyer definitions above.
Open an FHSA if you don't have one.
Make a savings plan with a target price range and date.
Talk to a lender about pre-approval, and ask how they treat gifted funds if family is helping (see gifted down payments).
Start looking at homes in your range, so your target is grounded in what's actually for sale.