The true cost of owning a home in London

Last reviewed October 30, 2026

The most common mistake in rent-vs-buy comparisons is putting rent next to a mortgage payment and calling it done. Owning involves several other costs. Some are recoverable, some aren't. Here's the full list.

Recoverable vs unrecoverable costs

A useful way to think about it: some ownership costs are like rent, because the money is gone. Others build your wealth.

The fair comparison is rent vs the unrecoverable costs of owning, then accounting for what the renter could earn by investing the down payment instead.

Monthly ownership costs

Mortgage payment

Your payment covers interest and principal. Early in a mortgage, most of each payment is interest. Ask a lender for a payment estimate at current rates. Use the full purchase price minus your down payment, plus any mortgage insurance premium added to the loan.

Property tax

London's residential property tax rate is applied to your home's MPAC assessed value. Find the current rate on the City's website, or check the listing for the current tax bill.

Home insurance

Higher than tenant insurance, because you're insuring the building (or, for condos, your unit and improvements).

Utilities

Often higher than in a rental, especially moving from an apartment to a house. You'll pay hydro, water and gas. London Hydro bills water along with electricity.

Condo fees (if applicable)

These cover building costs and reserves. See our sister site London Ontario Condos.

Maintenance and repairs

The cost new owners most often underestimate. A common rule of thumb is to budget 1–2% of the home's value per year, with older homes at the higher end. Furnaces, roofs, water heaters and appliances all wear out, and many London homes date from the 1950s–80s.

One-time costs

• Down payment: at least 5% of the first $500,000 (more above that).
• Land transfer tax: Ontario's tax applies. London has no municipal tax, and first-time buyers can get up to $4,000 back.
• Legal fees, title insurance and a home inspection.
• Tax on mortgage insurance, if you put down less than 20%. It's due at closing.
• Moving and setup: tools, a lawn mower, a snow shovel, window coverings.
• Selling costs later: commission and legal fees when you eventually sell.

A monthly ownership worksheet

Next step

Once you have your renting number and your ownership number, use our break-even guide to see how long you'd need to stay for buying to come out ahead.

Costs that fall over time

Several ownership costs shrink as the years go by. Mortgage interest falls as the balance drops. Mortgage default insurance is paid once. Closing costs are a one-time hit. Meanwhile, rent tends to rise. That's why the comparison between renting and owning changes the longer you stay, and why a snapshot of year one can be misleading.