Homeownership down payment assistance program


A new program to help renters become homeowners

The program will assist moderate income rental households in purchasing affordable homes in London or Middlesex County by providing eligible home buyers an interest-free forgivable loan over 20 years, covering up to 5% of the home's purchase price, to a maximum of $25,000. 

Limited Funding 

Completed applications are processed on a first-come, first-served basis until funds are depleted. We encourage you to apply early to secure your chance for financial assistance. 

IMPORTANT: Closing dates should be 30 business days or more to allow for sufficient processing time. 

Effective April 5, 2026 - Require 2025 Notice of Assessment (NOA) from the Canada Revenue Agency (CRA).

Who is eligible?

Program criteria to qualify
  • Applicant must be at least 18 years old
  • Applicant cannot currently own a home or a residential property (in whole or in part, including a recreation or cottage property). Also cannot be living in a spousal relationship (including same-sex spousal relationship) with a person who owns, in whole or in part, a residential property including recreation or cottage property.
  • Total household liquid assets cannot exceed $100,000
  • Maximum house price is $500,000
  • Maximum gross household income limit is $113,700
    Total household income includes the gross income of all household members aged 18 and over
    Self-employed applicants: Income will be assessed using the same criteria as recognized financial institutions. Additional documentation may be required, including a T1 General Income Tax Return and Statement of Business Activities.
  • Applicant must be a renter in London or Middlesex County
  • Applicant must agree not to lease the home or individual rooms in the home and must agree to occupy the home for the duration of the loan agreement
  • Applicant must be eligible to obtain a mortgage at a recognized financial institution and demonstrate sustainability
  • Applicant must be able to pay all closing costs
  • All homes must have a home inspection
  • Sign loan agreement 
Loan terms  

In addition to the program eligibility requirements, the terms of the loan include provisions to support the ongoing sustainability of the funds and the discharge terms, including:

  • A declaration will be provided for the applicant to review and sign, confirming their understanding of the repayment terms for the capital gains portion of the agreement.
  • If the applicant decides to sell the home or if in default, the principal and 5% capital gains (if applicable) must be repaid.
  • If the home is resold at a greater price than the original purchase price, the purchaser must pay 5% of the capital gains.
  • On the 20th anniversary, the loan is automatically forgiven if no event of default has taken place.

How to apply

  1. Make an offer on a home
  2. Complete the application forms provided below
  3. Submit the completed forms and all required documents in one of the following ways:
  • Email: housingprograms@london.ca
  • Drop off: City Hall, 300 Dufferin Avenue at the Path2Approval counter on the 2nd floor (Open Mon-Fri 8:30AM-4:30PM) 
    Path2Approval counter staff at City Hall are only accepting completed application packages and unable to assist with program inquires.
  • Mail: City of London, PO Box 5035, London ON N6A 4L9 - Attention: Homeownership Down Payment Assistance Program 

Please email or call the Housing Program team with any program inquiries or application process questions.  

What's Next? 

  1. You will receive an email that your application has been received.
  2. Please note, only fully completed application packages will be reviewed for eligibility.    
    If your application is incomplete, you will contacted by email to submit the missing information to be eligible for review.
  3. Lastly, you be notified by email of your successful eligibility and next steps. 

Application Package  

Application forms

 

High interest in this program is expected. 

We greatly appreciate your patience and understanding as we work to respond to inquires and process applications. 

FAQs

What type of home can I buy?

The purchasers may select a new or resale home (detached, semi-detached, townhouse (condo and freehold), stacked homes, row houses or condo apartments) of their choice in London or County of Middlesex provided that it meets with the program criteria and requirements. The home must
be modest in size, relative to community norms, in terms of floor area and amenities.

Will I qualify if I owned a home in the past?

Yes, as long as you are currently a renter in London or Middlesex County. 

NOTE: Applicants who have ownership interest (they own or partly own) in a property do not qualify for down-payment assistance under the Home Ownership Program.

How much is the down payment assistance?

The program provides 5% down payment assistance to eligible applicants in London and the County of Middlesex to assist them in purchasing a home.

What are some of the requirements I'll need to provide to apply?

The requirements needed to be eligible are: 
(Including all household members aged 18 and older)

  • Effective April 5, 2026 - 2025 Notice of Assessment (NOA) from the Canada Revenue Agency (CRA)
  • Two (2) most recent paystubs and/or recently dated Letter of Employment
  • Bank verification of income and assets. This is to be completed and signed by a financial institution.
  • Copy of birth certificate for all household members
  • Proof of residence in Canada (i.e. Canadian citizenship card or permanent resident card). Do not send originals.
  • Mortgage approval documents
  • Applicant must be a renter, defined as a tenant who has a rental agreement for a self-contained unit with a property owner who is not a relative.
  • Must have been renting for up to one year, if you have been renting for more than a year and are now month to month you must provide lease agreement and proof of rent payments. (For example: landlord letter, rent receipts for at least 6 months or bank statements showing payments)
  • Copy of current lease agreement - must include landlord’s name and contact information
     
Is there a deadline date for the application?

No. Applications will be accepted on a continuous basis until our funding is depleted.

What is the expected time frame for approval?

Applicants who submit complete applications can expect to receive an eligibility decision within five business days. This timeline may vary based on application volume and organizational needs.

Note: Choosing a lawyer outside of London may result in delays in processing your cheque. Clients who choose an out-of-town lawyer are also responsible for arranging the pickup and delivery of their cheque to their lawyer.

Do I need a home inspection before buying the home?

Yes, a home inspection is required for resale homes (at the homeowner’s expense) and a copy of the home inspection report must be provided after approval but before funding is issued. 

What costs are expected to be covered by the purchaser?

The purchaser is expected to cover the legal costs, closing costs, registration and home inspection as well as any additional costs to secure mortgage.

Note: Choosing a lawyer outside of London may result in delays in processing your cheque. Clients who choose an out-of-town lawyer are also responsible for arranging the pickup and delivery of their cheque to their lawyer.

What is a loan agreement?

It's an agreement between the City and the purchaser for the down payment assistance that the eligible purchaser must sign.

Is this an interest-free loan?

Yes.
There will be no interest charge on the 5% financial assistance if all loan agreement conditions are met. 
There are conditions for loan repayment outlined below.  

What are the conditions for repayment of the loan?

If a home is sold before the 20-year period expires, the following penalties apply:

  • The homeowner is required to repay the original agreed upon 5% financial assistance, plus 5% of any realized capital gains.
  • A homeowner may voluntarily repay the loan at any time. There is no interest charged. However, if the home has increased in value, repayment will include the City’s proportional share of the increase in value, as set out in the loan agreement.
  • Money put into renovations made to the property cannot be deducted from the capital gains.
  • If a purchaser ceases to occupy a home as a sole and primary residence within 20 years of the date of purchase, it is deemed a sale and the repayment requirements outlined above apply.
What will happen if I sell my home after the 20-year period?

If the home is sold after 20 years, there would be no repayment of 5% financial assistance or capital gains.

In cases where a home is sold within the 20 year period but the seller experiences a capital loss, repayment of 5% financial assistance would be waived provided the sale meets the following criteria:

  • The unit is sold at a fair market value (verified by an independent appraisal by the City); and
  • The purchase and sale of the unit is an arm’s-length transaction.

NOTE: Arms length transaction is a transaction between individuals who are acting independently of each other and/or who are not related or connected to each other by blood, marriage, common-law partnership or adoption.

Are there any special requirements for mortgage insurance?

Mortgage Insurance is required under the program.

Are there other agents representing the City in the program?

No. But real estate agents and financial institutions in London and Middlesex County are able to help you to apply for the program. 

Are there any circumstances where by a home can be purchased for over $500,000?

No. The purchase price of a home cannot exceed the $500,000 limit.

 

Program is a partnership between the Government of Canada, the Province of Ontario and the City of London through the Ontario Priorities Housing Initiative. 

Last modified:Thursday, September 10, 2026