Rent or buy in London, Ontario?

It's one of the biggest money decisions you'll make, and most advice on it is one-sided. Landlords' ads say rent. Real estate ads say buy. This site lays out both sides honestly, with the tools to work out which makes sense for you.

Renting gives you

  • Flexibility to move easily
  • Predictable costs, with repairs on the landlord
  • Less cash needed up front
  • Freedom to invest the difference

Buying gives you

  • Equity built with every payment
  • Protection from rent increases and from being asked to leave
  • Control over your home
  • Potential long-term appreciation

Last reviewed October 30, 2026

The short answer

For most people planning to stay in London for five years or more, with stable income and a down payment saved, buying tends to come out ahead over time. That's mainly because of forced savings through mortgage principal, and because owners aren't exposed to rising market rents. For people who might move within a few years, whose income is uncertain, or who would drain every dollar to buy, renting is often the better choice, at least for now.

But "tends to" isn't "always". The real answer depends on your rent, the home you'd buy, interest rates, and how long you'll stay. That's what the rest of this site helps you work out.

Work through it step by step

1. The true cost of rentingRent plus the costs people forget, and the rent increases to expect. 2. The true cost of owningMortgage, taxes, insurance, maintenance and closing costs. 3. Find your break-evenHow long you need to stay for buying to pay off, with a worked example. 4. When renting winsThe situations where renting is the smarter move. 5. From renter to ownerA practical path if you decide to buy. 6. Starter homes in LondonThe types of homes first-time buyers typically start with.

Why London is an interesting case

London sits in a middle ground. Home prices are well below the GTA, and rent is lower too, but rents have risen significantly in recent years as the city has grown and two large post-secondary institutions keep rental demand high. For many London renters, a monthly mortgage payment on a modest condo or townhouse isn't far from what they already pay in rent. That makes the rent-or-buy comparison here genuinely close for a lot of people, which is why it's worth doing carefully.

The question behind the question: the most important variable isn't interest rates or prices. It's how long you'll stay. Buying and selling are expensive. Stay long enough and those costs are spread thin. Move in two years and they can wipe out any gain.

What renters often get wrong, and what buyers often get wrong

Common renter mistakes

  • Assuming rent is "dead money" while ownership costs are all investment.
  • Not investing the money they save by renting.
  • Underestimating future rent increases when they move.

Common buyer mistakes

  • Comparing rent only with the mortgage payment.
  • Forgetting maintenance, property tax and closing costs.
  • Buying when they might move in two years.

How we approach this

We don't publish a single "rent or buy" verdict for London, because the honest answer changes with each household's numbers. Instead, each page explains one piece of the decision, shows how to calculate it, and points to the official sources for figures like rent increase rules, mortgage requirements and first-time buyer programs. Where we use examples, they're clearly labelled as hypothetical, so you can swap in your own rent, price and timeline. The aim is that you finish with a decision you understand, whichever way it goes.

Help that might tip the balance

First-time buyers in London may be able to use the FHSA, the RRSP Home Buyers' Plan, Ontario's land transfer tax refund and other programs, which can make buying sooner more realistic.

Three quick scenarios

Probably rent (for now)

A recent graduate on a one-year contract, who might move for a permanent job, with modest savings. Renting keeps options open while they build an FHSA.

Probably buy

A couple with stable jobs in London, who plan to stay at least seven years, with a down payment saved plus three months of expenses. Owning likely comes out ahead.

Most people fall somewhere in between. That's where the step-by-step guides above help.

Your local agent

Curious what owning would look like for you?

Comparing renting and buying only works with real numbers: actual homes in your price range, in neighbourhoods you'd want to live in. Rayna Elabed, a Sales Representative with CENTURY 21 First Canadian Corp., Brokerage in London, can show you what's available and what similar homes have recently sold for, so you can compare it fairly with your rent. No pressure, and no obligation to buy.

Browse London listings with Rayna