Renting vs. Owning in Southwestern Ontario: What Your Monthly Payment Could Really Buy
We ran the real numbers on renting versus buying in London, St. Thomas, and Strathroy — no spin, just an honest look at what your monthly payment could actually get you.
If you've been renting the same two-bedroom for a few years now, you've probably noticed the number on your renewal letter creeping up while the space itself hasn't gotten any bigger. You're not imagining it, and you're not doing anything wrong. Rents across London, St. Thomas, and Strathroy have moved a lot over the past few years, and for a lot of renters, that monthly payment is starting to look uncomfortably close to what a mortgage payment would be — without any of it building equity.
We wanted to lay out what that actually looks like in real numbers, for two kinds of renters we talk to all the time.
Watch: Kurtis & Christine break down rent vs. own in London, St. Thomas & Strathroy
Two Renters, Two Different Squeezes
Picture a young couple renting a one-bedroom near Richmond Row. They like being close to the restaurants and the walkability, but every lease renewal takes a bigger bite out of what they're trying to save for a down payment. The apartment isn't the problem — it's that the rent keeps climbing while their savings account barely moves.
Now picture a family of four in a two-bedroom rental in St. Thomas. The kids are getting older, they need their own rooms, and the backyard — if you can call it that — isn't big enough for a swing set. Every option they look at to "move up" in the rental market costs almost as much as what a mortgage payment would be on an actual house with a real yard.
Both of these situations come back to the same question: at what point does renting stop making sense, and what would owning actually cost instead? Let's look at real numbers.
What Renters Are Actually Paying Right Now
Rent varies a lot depending on bedroom count, building age, and location, so instead of pretending there's one magic number, here's the realistic range for a two- to three-bedroom rental in each community right now:
| Community | Typical Monthly Rent Range |
|---|---|
| London | $2,000 – $3,000 |
| St. Thomas | $1,700 – $2,700 |
| Strathroy | $1,600 – $2,500 |
Notice that the ranges overlap quite a bit. A newer unit in St. Thomas can easily cost as much as a dated unit in London. Strathroy tends to sit at the lower end, but "cheaper" isn't automatic anywhere anymore — it comes down to the specific building and location.
A Real Look at Rent vs. Own
Here's where it gets interesting. We took a realistic starter-home price in each community and worked out roughly what the monthly mortgage payment would look like, so you can compare it side by side with what you're already paying to rent.
| Community | Realistic Starter Home Price | Est. Monthly Payment* |
|---|---|---|
| London | ~$550,000 | ~$2,800 |
| St. Thomas | ~$475,000 | ~$2,420 |
| Strathroy | ~$425,000 | ~$2,170 |
*Based on a 10% down payment, 25-year amortization, and today's approximate insured 5-year fixed rate. See the full breakdown below for how the payment shifts at other down payment levels.
Look at the top end of the London rent range next to the London ownership estimate: a $3,000/month rental and a $550,000 starter home land in almost the same monthly ballpark. The difference is that one of those payments is building equity in something that's yours, and the other is going straight to a landlord. That's not a knock on renting — it's simply worth seeing side by side.
How Your Down Payment Changes the Payment
The size of your down payment moves your monthly payment more than most renters expect — partly because you're borrowing less, and partly because mortgage default insurance premiums shrink (and disappear entirely) once you reach 20% down. Here's what that looks like across all three communities:
| Down Payment | London (~$550K) | St. Thomas (~$475K) | Strathroy (~$425K) |
|---|---|---|---|
| 5% down | $27,500 down → ~$2,987/mo | $23,750 down → ~$2,579/mo | $21,250 down → ~$2,308/mo |
| 10% down | $55,000 down → ~$2,805/mo | $47,500 down → ~$2,422/mo | $42,500 down → ~$2,167/mo |
| 15% down | $82,500 down → ~$2,641/mo | $71,250 down → ~$2,281/mo | $63,750 down → ~$2,041/mo |
| 20% down | $110,000 down → ~$2,468/mo | $95,000 down → ~$2,132/mo | $85,000 down → ~$1,907/mo |
Figures assume a 25-year amortization and an approximate insured 5-year fixed rate of 4.39% (or 4.59% once you're putting down 20% or more and no longer need mortgage default insurance). Payments under 20% down include an estimated CMHC insurance premium, which is why the payment drops faster than the mortgage amount alone would suggest — less insurance premium on top of a smaller loan. None of this includes property tax, home insurance, or closing costs, and actual rates depend on your lender and qualification. This is a starting point for a conversation with a mortgage broker, not a rate guarantee.
What Your Down Payment Changes
The size of your down payment doesn't just change how much cash you need up front — it changes your monthly payment, and it changes whether your mortgage needs to carry default insurance at all. Here's how that plays out at each of our three price points, using current insured and uninsured rate estimates.
Estimated monthly payment at a 5-year fixed rate, 25-year amortization, by down payment percentage and community.
London — $550,000 Purchase Price
| Down Payment | Cash Down | Mortgage (incl. insurance) | 5-Yr Fixed | 3-Yr Fixed | 5-Yr Variable |
|---|---|---|---|---|---|
| 5% | $27,500 | $543,400 | 4.39% · $2,987/mo | 4.34% · $2,971/mo | 3.70% · $2,779/mo |
| 10% | $55,000 | $510,345 | 4.39% · $2,805/mo | 4.34% · $2,791/mo | 3.70% · $2,610/mo |
| 15% | $82,500 | $480,590 | 4.39% · $2,641/mo | 4.34% · $2,628/mo | 3.70% · $2,458/mo |
| 20% (uninsured) | $110,000 | $440,000 | 4.59% · $2,468/mo | 4.84% · $2,531/mo | 3.95% · $2,310/mo |
St. Thomas — $475,000 Purchase Price
| Down Payment | Cash Down | Mortgage (incl. insurance) | 5-Yr Fixed | 3-Yr Fixed | 5-Yr Variable |
|---|---|---|---|---|---|
| 5% | $23,750 | $469,300 | 4.39% · $2,579/mo | 4.34% · $2,566/mo | 3.70% · $2,400/mo |
| 10% | $47,500 | $440,752 | 4.39% · $2,422/mo | 4.34% · $2,410/mo | 3.70% · $2,254/mo |
| 15% | $71,250 | $415,055 | 4.39% · $2,281/mo | 4.34% · $2,269/mo | 3.70% · $2,123/mo |
| 20% (uninsured) | $95,000 | $380,000 | 4.59% · $2,132/mo | 4.84% · $2,186/mo | 3.95% · $1,995/mo |
Strathroy — $425,000 Purchase Price
| Down Payment | Cash Down | Mortgage (incl. insurance) | 5-Yr Fixed | 3-Yr Fixed | 5-Yr Variable |
|---|---|---|---|---|---|
| 5% | $21,250 | $419,900 | 4.39% · $2,308/mo | 4.34% · $2,296/mo | 3.70% · $2,147/mo |
| 10% | $42,500 | $394,358 | 4.39% · $2,167/mo | 4.34% · $2,156/mo | 3.70% · $2,017/mo |
| 15% | $63,750 | $371,365 | 4.39% · $2,041/mo | 4.34% · $2,031/mo | 3.70% · $1,899/mo |
| 20% (uninsured) | $85,000 | $340,000 | 4.59% · $1,907/mo | 4.84% · $1,956/mo | 3.95% · $1,785/mo |
All numbers above are approximate and for comparison purposes only. Rates shown are conservative estimates as of July 2026 and do not include promotional or quick-close specials. Uninsured rates (20%+ down) typically run 0.20%–0.50% higher than insured rates due to risk. Payments do not include property tax, home insurance, or closing costs. Consult a licensed mortgage broker for a formal, personalized rate quote.
Where That Payment Actually Takes You
For the young professional renting near Richmond Row, staying in London doesn't have to mean giving up the walkable, close-to-everything lifestyle. Areas like Old East Village and parts of London East still offer starter homes and townhomes at more approachable price points than London South or North, while keeping you a short drive from downtown and the core.
For the family outgrowing their St. Thomas rental, staying put and buying can make a lot of sense — St. Thomas has real, family-friendly neighbourhoods with actual yards, and you're still a quick drive to London for work or a bigger shopping trip. The city has seen real investment and growth in recent years, which is part of why rents there have climbed close to London's.
And for renters who are open to a bit more of a drive, Strathroy is where that same monthly budget tends to stretch the furthest — more house, more yard, and a genuinely quieter pace, about 25–30 minutes from London depending on traffic. It won't be the right fit for everyone, but for the right buyer it's real breathing room.
The Trade-Offs We Won't Pretend Aren't There
We're not going to tell you buying is automatically the right move, because it isn't for everyone, and we'd rather you go in with your eyes open than feel talked into something.
- Commute: St. Thomas and especially Strathroy will add real time to your commute if your job is in central London. That's worth mapping out before you fall in love with a listing.
- Lifestyle: if walkability and being five minutes from your favourite spots matters to you, a smaller town might feel like a trade-off, not an upgrade — even with the extra space.
- Maintenance: a landlord isn't coming to fix your furnace anymore. Owning means budgeting for upkeep, and that's a real shift if you've never had to think about it.
None of that means don't buy. It just means go in knowing the whole picture, not just the monthly payment.
What Your Numbers Actually Look Like
Every renter's situation is a little different — your credit, your down payment, whether you're buying solo or with a partner, and what you actually need in a home all change the math. The ranges above are a starting point, not your personal answer.
If you want to see what your specific rent could translate into across London, St. Thomas, or Strathroy, send us your current monthly rent and we'll walk you through what that same budget could actually buy in each community — no pressure, just real numbers for your situation. Simply reach out and let's talk it through.
