What does it actually cost to rent vs buy in London, Ontario right now?
London remains one of Ontario’s lower-rent markets. As of August 2026, London posted the lowest unfurnished one-bedroom asking rent among the 20 Ontario areas liv.rent tracks each month, at $1,547, per liv.rent’s August 2026 Ontario Rent Report, $625 below Oakville, the priciest market in the same report. Buying looks different: London’s MLS Home Price Index composite price sat at $557,000 in July 2026, down 4.0 percent from a year earlier, while the average resale price across all property types was $603,006, down 7.0 percent over the same period, according to the London and St. Thomas Association of Realtors’ data as reported by WOWA.ca. Those are two different measures of the same market, and this article uses each one consistently: the MLS HPI figure for a like-for-like read on price trends, and the average resale price when discussing the full range of homes that actually changed hands.
Current rent prices in London by bedroom type
CMHC’s October 2025 Rental Market Survey puts purpose-built average rents in London at roughly $1,250 for a one-bedroom, $1,500 for a two-bedroom, and $1,700 for a three-bedroom or larger unit, according to WealthNorth’s analysis of CMHC data. These purpose-built averages run below current asking rents, since they include long-term tenants paying below-market rates alongside units currently listed.
What a mortgage on a London home costs per month in 2026
A buyer at London’s $557,000 MLS HPI composite price needs a minimum down payment of $30,700: five percent on the first $500,000 and 10 percent on the remaining $57,000, leaving a base mortgage of $526,300. Since that down payment is under 20 percent, mortgage default insurance applies. At a loan-to-value ratio in the 90.01-to-95-percent range, CMHC’s current premium is 4.0 percent of the loan, or roughly $21,052, which can be added to the mortgage itself. Ontario also charges provincial sales tax on that premium, about $1,684 at 8 percent, and that portion has to be paid in cash at closing rather than rolled into the loan.
As of August 26, 2026, the average insured five-year fixed mortgage rate sat at 4.62 percent among national lenders and 4.75 percent among Canada’s six largest banks, per WOWA.ca. Shoppers who compare multiple lenders directly can sometimes find a lower rate than either average, so treat the figures here as a starting point rather than the lowest available offer. Over a 25-year amortization at 4.62 to 4.75 percent, the payment on this insured loan works out to roughly $3,080 to $3,120 a month, before property tax, home insurance, and maintenance. Every buyer’s rate, credit profile, and amortization differ, so treat this as an illustration rather than a quote, and confirm a live rate with a lender before making a decision.
The monthly gap: how much renters save compared to owners
A January 2026 third-party price-to-rent analysis by Zoocasa estimated that renting cost $416 a month less than owning in London, under its own assumptions of a 20 percent down payment and a 3.89 percent mortgage rate. Both are more favourable than what a minimum-down-payment buyer can access today, so treat the $416 figure as directional rather than a current London number: the real gap for many of today’s buyers is likely wider. The gap may also narrow for a condo apartment compared with a detached home, since London’s average apartment sale price was $354,000 in July 2026, well below the $603,006 average resale price across all property types, per WOWA.ca. Monthly condo fees are a separate cost that can offset some of that narrower gap.
| Metric | Figure | As of |
| Unfurnished one-bedroom asking rent | $1,547/month | August 2026 (liv.rent) |
| Purpose-built two-bedroom average rent | $1,500/month | October 2025 (CMHC) |
| Purpose-built three-bedroom or larger average rent | $1,700/month | October 2025 (CMHC) |
| MLS HPI composite price, all property types | $557,000 | July 2026 (LSTAR/WOWA.ca) |
| Average resale price, all property types | $603,006 | July 2026 (LSTAR/WOWA.ca) |
| Illustrative mortgage payment only, insured loan, 25-year amortization | $3,080 to $3,120/month | Rates as of August 26, 2026 |
| Renters’ estimated monthly savings vs owning | $416/month | January 2026 (Zoocasa) |
A mortgage payment is only part of ownership’s true monthly cost. Property tax and home insurance add to the total and vary by buyer and by a home’s assessed value, so no single dollar figure applies city-wide.
Is London, Ontario a buyer’s or a renter’s market in 2026?
Neighbourhood price ranges: London East, London North, and London South
London is not one price point. One realtor’s market update put typical resale prices across the city’s east, north, and south regions at about $430,000 in London East, $621,000 in London North, and $556,300 in London South as of July 2026. Figures at this level of neighbourhood detail are not yet available from an official LSTAR or CREA release, so treat this specific breakdown as one agent’s estimate rather than a board-confirmed figure, and check current comparable listings for the block or street you are considering. Renters weighing a move within the city can browse London rental listings on liv.rent to compare options by neighbourhood before deciding whether to buy or keep renting.
How much London home prices have fallen from their 2022 peak
London’s market has corrected significantly from its February 2022 peak. The average resale price was $603,006 in July 2026, down 7.0 percent year over year and more than 20 percent below the market’s record average of $825,221, set that month, according to WOWA.ca’s London-St. Thomas report. The same report notes prices sat below where they stood in July 2021, meaning a buyer from five years ago has seen little to no price growth since.
What inventory and sales ratios tell renters about negotiating power
London had 4.9 months of housing supply in July 2026, inside the three-to-five-month range WOWA.ca classifies as balanced. The sales-to-new-listings ratio was 44.5 percent, and homes sold for an average of 2.9 percent below asking, with a typical 30 days on the market, meaning less pressure to bid over asking and more room for financing and inspections.
What do Ontario’s new tenancy laws mean for London renters in 2026?
Ontario’s tenancy rules are mid-overhaul in 2026, and London renters fall under every change, since the Residential Tenancies Act, 2006 and the Landlord and Tenant Board apply the same way across the province. A first wave of amendments from Bill 60, the Fighting Delays, Building Faster Act, 2025, and Bill 97, the Helping Homebuyers, Protecting Tenants Act, 2023, took effect July 1, 2026. A second wave of amendments is scheduled for September 21, 2026; specific wording should be confirmed against Tribunals Ontario and the official commencement order before you rely on it for a decision.
Bill 60 changes already in force since July 1, 2026
Since July 1, 2026, the window to request a review of a Landlord and Tenant Board order has shrunk from 30 days to 15, per Tribunals Ontario’s operational update. Above-guideline-increase applications now require supporting documents served within seven days rather than 14, with a certificate of service due within five days after that. Repayment plans filed with the board must now use its official Payment Agreement Form, tenants may install a window or portable air conditioner after giving written notice, and the maximum fine for a Residential Tenancies Act offence has doubled to $100,000 for individuals and $500,000 for corporations.
What changes September 21, 2026: N4 notices and more
Two further changes are scheduled to take effect September 21, 2026, under an order in council signed by the Ontario government. The non-payment eviction notice period, the N4 form, is set to drop from 14 days to seven.
A landlord generally giving at least 120 days’ notice for a personal-use eviction is also expected to no longer owe one month’s compensation. The precise scope of that provision, including how it applies to N12 and N13 notices specifically, should be confirmed against the Landlord and Tenant Board’s own guidance closer to the date.
Some reporting this year also suggested fixed-term leases would stop automatically converting to month-to-month tenancies on this date. That proposal was floated when Bill 60 was introduced but was reportedly dropped before the bill received royal assent (per legal-document publisher Draftmint’s August 2026 correction), and Section 38 of the Residential Tenancies Act, which deems a fixed-term tenancy renewed on the same terms once its term ends, remains in effect. In general, a fixed-term lease in London still becomes month-to-month automatically when its term expires. Renters and landlords with a specific lease question should confirm current wording directly with the Landlord and Tenant Board rather than relying on any single article, including this one.
Why rent control exemptions matter for the buy vs rent decision
Ontario’s 2026 rent increase guideline is 2.1 percent, and it applies to most units first occupied for residential purposes on or before November 15, 2018, per the Government of Ontario. New buildings, additions, and most new basement apartments first occupied for residential purposes after that date are exempt from the guideline. A landlord raising rent on an exempt, newer unit mid-tenancy still must give 90 days’ written notice, though the exemption does not limit what a landlord can charge a new tenant once a unit turns over. That matters for anyone weighing a long-term rental near Western University or downtown against buying: a renter in an older, guideline-covered building generally has more rent predictability than one in a newer building, though not every unit in an older building is automatically covered. This is general information rather than legal advice, and understanding your rights as an Ontario renter is worth doing before signing another lease or a mortgage. Renters with a specific dispute should contact the Landlord and Tenant Board directly.
How much do you need to buy in London, Ontario? The real upfront cost
Minimum down payment on a London home at today’s price
At London’s $557,000 MLS HPI composite price, the minimum down payment is $30,700: five percent of the first $500,000 plus 10 percent of the remaining $57,000. Because that is below 20 percent, mortgage default insurance applies, adding roughly $21,052 to the loan at that loan-to-value ratio, plus provincial sales tax on the premium payable in cash at closing.
Closing costs London buyers actually pay (and what Toronto buyers pay extra)
Ontario’s land transfer tax uses the province’s official marginal rate schedule: 0.5 percent on the first $55,000, 1.0 percent on the next $195,000, 1.5 percent on the next $150,000, and 2.0 percent on the remainder up to $2 million. On a $557,000 purchase, that comes to roughly $7,615 before rebates. A first-time buyer’s provincial rebate of up to $4,000 brings the net tax payable to about $3,615. Unlike Toronto, which layers its own municipal land transfer tax on top of the provincial one, London charges no separate municipal tax, so a London buyer’s bill stops at the provincial number.
First-time buyer programs worth knowing about
Three federal programs can offset that upfront cost. The First Home Savings Account lets eligible buyers contribute up to $8,000 a year, to a $40,000 lifetime maximum; contributions are generally tax-deductible, and qualifying withdrawals toward a first home are tax-free. The Home Buyers’ Plan allows withdrawing up to $60,000 from an RRSP toward a first home (raised from $35,000 for withdrawals made after April 16, 2024), so two eligible buyers together could draw on up to $120,000. And the federal Home Buyers’ Amount, per Canada’s Financial Consumer Agency, can provide up to $1,500 in federal tax relief for eligible first-time buyers. None of these is specific to London, but paired with the city’s lack of a municipal land transfer tax, they meaningfully close the gap between savings and what a lender expects at closing.
When does renting beat buying in London, and when does buying win?
A common break-even rule of thumb
A common rule of thumb is that transaction costs (land transfer tax, legal fees, and eventually a realtor’s commission) can take several years to recover, so a buyer typically needs four to five years in a home before ownership overtakes renting on total cost. In London, land transfer tax alone runs to roughly $3,615 net for a first-time buyer, before legal fees, title insurance, and a home inspection. Anyone staying in London for less than about five years should weigh those transaction costs against the $416 monthly gap Zoocasa’s analysis estimated for renting.
Renting and investing the difference
For a renter who keeps renting rather than buys, the math on renting as a monthly housing cost looks different once that monthly gap is counted. Investing the roughly $416 a month that owning currently costs extra, rather than spending it, compounds over time at whatever return an individual’s own portfolio produces; this article does not assume a specific rate of return, since that depends entirely on personal choices and risk tolerance. What is verifiable is that London’s average resale price sat below where it stood five years earlier as of July 2026, so price appreciation cannot be assumed as an offset over a short holding period.
Who should stay renting in London right now
London’s 4.9 months of supply and 44.5 percent sales-to-new-listings ratio, as of July 2026, give a prospective buyer more time for due diligence than a tighter market would. That favours anyone already leaning toward buying. Students and recent graduates near Western University, and anyone whose timeline in the city is short or whose savings do not yet cover the roughly $30,700 minimum down payment, may be better served by renting for now.
How do London rents compare to buying in nearby Ontario cities?
London vs Toronto and Hamilton in purpose-built rents
Purpose-built two-bedroom rents in London averaged roughly $1,500 as of October 2025, compared with about $2,046 in Toronto and $1,600 in Hamilton, per WealthNorth’s analysis of CMHC Rental Market Survey data, putting London’s rents about 27 percent below Toronto’s for a comparable unit.
Where London sits in Ontario’s rent-vs-buy spectrum
London’s gap between renting and owning is moderate next to its Ontario peers. Zoocasa’s January 2026 analysis estimated the monthly savings from renting instead of owning at $226 in Kingston, $416 in London, and $781 in Waterloo, where a booming tech sector has pushed home prices up faster than local rents.
| City | Monthly savings from renting instead of owning |
| Kingston | $226 |
| London | $416 |
| Waterloo | $781 |
Why that puts London in a defensible mid-range position
A moderate gap cuts both ways. London does not make the case for renting as strongly as Waterloo does, but it also does not reward buying the way a market with a far smaller gap might. For most London renters, the decision comes down less to citywide averages and more to individual factors: how long they plan to stay, how much they have saved, and how comfortable they are with a mortgage payment that current data puts meaningfully above typical rent. Renters comparing London to nearby cities can use liv.rent to compare listings and rental resources across Ontario markets.
What should London renters do right now?
If you are leaning toward buying
Calculate the true gap between your current rent and a realistic mortgage payment at today’s rates, not a year or two ago. Check eligibility for the First Home Savings Account and Home Buyers’ Plan well before you need the funds, since both have timing rules. Ask for comparable recent sales in your target London neighbourhood rather than relying on the citywide average, and budget for a home inspection given how much prices vary block to block. liv.rent’s Ontario rent reports are published monthly and can help track whether the gap between renting and buying in London is widening or narrowing.
If you are staying a renter
Confirm when your building was first occupied for residential use: that single fact determines whether Ontario’s 2.1 percent guideline applies to any increase you receive this year. Keep records of your rent payment dates, since a pattern of late payments carries consequences under Ontario’s rules, and your own timeline matters if a dispute ever reaches the Landlord and Tenant Board. Check Tribunals Ontario directly for the latest updates once the September 21, 2026 changes take effect, since some reporting on them, including claims about fixed-term leases, has not been accurate.
How liv.rent can help either way
Whether you end up buying or staying a renter, liv.rent helps renters search with more confidence through rental listings, digital applications, and tenant tools, whether they need a new rental this month or are simply comparing their current rent against the city average while they save toward a future purchase.
Is it cheaper to rent or buy in London, Ontario in 2026?
Renting is cheaper on a monthly basis for most buyers today. A January 2026 third-party analysis by Zoocasa estimated the gap at $416 a month in renters’ favour, though that figure assumed a 20 percent down payment and a lower mortgage rate than most buyers can access now, so the real gap is likely wider for a typical minimum-down-payment buyer.
What is the average rent in London, Ontario right now?
London had the lowest unfurnished one-bedroom asking rent among the 20 Ontario areas liv.rent tracks, at $1,547 a month, per liv.rent’s August 2026 Ontario Rent Report. CMHC’s October 2025 Rental Market Survey put purpose-built averages at roughly $1,250 for a one-bedroom, $1,500 for a two-bedroom, and $1,700 for a three-bedroom or larger unit.
Are London, Ontario rentals covered by rent control in 2026?
Only some of them. Ontario’s 2026 guideline caps rent increases at 2.1 percent for most units first occupied for residential purposes on or before November 15, 2018. New buildings, additions, and most new basement apartments first occupied for residential purposes after that date, including many newer buildings near Western University, are exempt from the guideline.
What are the new Ontario Landlord and Tenant Board rules renters need to know in 2026?
Two waves of changes apply. Since July 1, 2026, the deadline to request a review of a board order has shortened from 30 days to 15, and maximum fines for Residential Tenancies Act offences have doubled. A second wave is scheduled for September 21, 2026, generally including a shorter non-payment eviction notice period and changes to personal-use eviction compensation; check Tribunals Ontario directly for the exact provisions. Fixed-term leases are expected to continue converting automatically to month-to-month tenancies, since the proposal to end that protection was reportedly dropped before the relevant bill became law.
How much do I need for a down payment on a house in London, Ontario?
At London’s July 2026 MLS HPI composite price of $557,000, the minimum down payment is about $30,700: five percent on the first $500,000 and 10 percent on the remainder. Because that is under 20 percent, mortgage default insurance applies on top, plus provincial sales tax on the premium.
Is the London, Ontario housing market recovering or still dropping in 2026?
It is stabilizing rather than clearly recovering or continuing to fall. London’s average resale price was down 7.0 percent year over year in July 2026 and more than 20 percent below its February 2022 peak, but the market’s 4.9 months of supply falls within the range WOWA.ca classifies as balanced.
Should a Western University student or recent graduate rent or buy in London?
Renting is generally the more practical choice for a time horizon under about five years. Land transfer tax, legal fees, and selling costs are large enough that a short stay often cannot recover them through home equity growth, and renting preserves the flexibility to leave the city after graduation.
Does London, Ontario have a municipal land transfer tax like Toronto?
No. London buyers pay only Ontario’s provincial land transfer tax, which comes to roughly $7,615 on a $557,000 purchase before a first-time buyer’s rebate of up to $4,000. Toronto buyers pay that same provincial tax plus a separate municipal land transfer tax.
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