Buying your first home is one of the biggest financial decisions you'll make, and it's completely normal to feel overwhelmed by it. If you've spent late nights scrolling Reddit threads or watching YouTube videos trying to piece together how this all works in London and Middlesex County, you're not alone. This guide answers the exact questions we hear most often from first-time buyers, so you can walk into your first showing feeling prepared instead of panicked.

How Much Do I Really Need for a Down Payment?

Minimum down payment in Ontario

Under federal rules, you need 5% down on the first $500,000 of a home's price, and 10% on any portion between $500,000 and $999,999, as long as you're planning to live in the home yourself. Putting down 20% or more changes things too: you avoid default insurance premiums entirely, and your monthly payment drops. On a typically priced London home, the difference between a 5% and 20% down payment can mean thousands saved over the life of your mortgage, so it's worth running both scenarios with your lender before you commit to a number.

Local programs for London, St. Thomas, and Strathroy

The London Middlesex Homeownership Down Payment Assistance program can provide up to 5%, capped around $25,000, as a forgivable loan that phases out over 20 years. It's aimed at renters in the region who fall under certain income and asset thresholds and are purchasing below a set price cap, and it applies to buyers in London and across Middlesex County, including Strathroy. St. Thomas previously ran its own Affordable Home Ownership Program, but that program is currently closed, so buyers there should check with the City of St. Thomas for any future intake dates. In the meantime, if you're purchasing in St. Thomas, it's still worth asking your mortgage broker whether you qualify for the Middlesex program or any provincial and federal first-time buyer incentives.

Don't forget closing costs

Legal fees, title insurance, a home inspection, an appraisal, and prepaid utilities or property taxes all show up on closing day, separate from your down payment. The good news: as a first-time buyer in Ontario, you're eligible for a land transfer tax rebate that covers the tax owing on homes up to a certain value, which means most first-time buyers in London, St. Thomas, and Strathroy end up paying little to no land transfer tax at all. A reasonable rule of thumb is to still budget 1% to 2% of the purchase price for the remaining closing costs. This is one of the most common places first-time buyers get caught off guard, so build it into your savings plan from the start rather than discovering it a week before closing.

Is It Normal to Feel This Anxious About Surprise Expenses?

Why the anxiety is completely normal

If you're lying awake worrying about repair bills, rate changes, or unexpected costs after closing, you're in good company. First-time buyer communities are full of people describing the exact same fear of "money leaks" once they own a home. Feeling nervous isn't a sign you're bad with money. It's a sign you're taking this seriously.

Building a basic homeowner safety net

A good starting target is three to six months of housing costs set aside, or a fixed amount earmarked specifically for repairs in your first year of ownership. New homeowners often underestimate smaller costs too, like replacing an aging appliance, tackling a minor reno, or adjusting to utility bills that run higher than a rental. Planning for these ahead of time takes a lot of the sting out of them when they happen.

Special condo worries: fees and special assessments

If you're considering a condo, it helps to understand what your monthly fee actually covers, and why a suspiciously low fee isn't necessarily a good sign; it can point to underfunded reserves. A special assessment is an additional one-time charge owners are asked to pay when the reserve fund can't cover a major repair, like a roof or elevator replacement. Before you buy, ask to see the status certificate and reserve fund study so there are no surprises after you move in.

Pre-Approval vs. Realtor: Who Comes First?

It's a bit of a chicken and egg question

People often assume they have to pick one to do first, but the truth is both can happen at the same time. A pre-approval tells you your maximum comfortable purchase price, gives you an estimated monthly payment, and locks in a rate hold for a set period. A good agent, meanwhile, helps you think through neighbourhoods, timing, and realistic price ranges based on what's actually available right now. Neither one has to wait on the other.

Why a good realtor makes this easier

This is where having a realtor with strong local contacts really pays off. A well-connected agent can set you up with a mortgage broker directly, so your pre-approval and your home search get moving in parallel instead of in sequence. You're not stuck waiting on paperwork before you can start looking, and you're not looking blind before you know your real budget.

How this looks in London, St. Thomas, and Strathroy

In practice, this often looks like a renter reaching out to a local agent, who connects them with a trusted mortgage broker familiar with the down payment assistance programs available in their specific area, whether that's London, St. Thomas, or Strathroy. From there, the pre-approval and the search happen side by side, with real numbers in hand from the start rather than guesswork.

Questions to Ask Your Realtor and Mortgage Broker

Questions for a realtor

• How many first-time buyers have you helped in the past year, and in what price range or neighbourhoods?
• What are the most common issues you see in older London homes or local condos?
• How do you typically handle multiple-offer situations for first-time buyers?
• Can you show me recent comparable sales so I understand what market value actually looks like here?

Questions for a mortgage broker or lender

• What type of mortgage fits my situation best, fixed or variable, and what term length makes sense?
• How much can I borrow, and what monthly payment do you think is actually comfortable for my budget?
• What happens to my payment if rates rise by one to two percent at renewal?
• Which first-time buyer incentives or local programs could I qualify for?

Red flags to watch for

Be cautious of any agent who rushes your decisions, discourages you from including reasonable conditions, or can't clearly explain the risks specific to the property or area. Similarly, a lender who only quotes your maximum purchase price without walking you through your actual monthly cash flow isn't giving you the full picture.

What Conditions Should I Put in My Offer?

Core conditions most first-time buyers need

A financing condition still matters even if you're pre-approved, since the lender's final approval depends on the specific property and its appraisal. A home inspection condition is especially important given the age of much of London's housing stock. For condos, your lawyer should review the status certificate closely, checking the reserve fund, any pending litigation, and the building's bylaws before your conditions are waived.

When it's risky to go firm

A firm offer has no conditions attached, which puts more risk on the buyer. The aggressive, condition-free offers common during the peak bidding-war years aren't always necessary in today's more balanced market. That said, well-priced homes in high-demand pockets can still draw pressure to waive conditions, so it's worth weighing that risk carefully with your agent rather than assuming the market has fully shifted everywhere.

Local nuance in 2026

Higher inventory and more balanced conditions across the London and St. Thomas region mean conditional offers are being accepted more often than they were a few years ago. Ask your agent how frequently conditional offers are winning in your specific area and price bracket right now, since this can vary block by block, not just city by city.

You're Not Bad With Money, You're Being Careful

Feeling nervous about the biggest purchase of your life doesn't mean something is wrong with you. It means you're paying attention. If you've got a specific worry we didn't cover here, or you just want to talk through where you're at, reach out. We'd rather answer your questions honestly now than have you find out the hard way later.