Should you rent or buy in London right now?
Rent if you might move within two or three years, or your money isn’t ready yet. Buy when you will stay three to five years or more, and the payment fits your budget comfortably.
You might be worried an agent will push you to buy before you’re ready. Buying is not always the smarter move.
The Bottom Line (Quick Answer)
- In London, Ontario, renting is usually the smarter call if you might move within two or three years.
- Compare the full monthly cost of owning with your rent. Then add the one-time costs to buy, and later to sell.
- Buying with the Ken Small Real Estate Team starts with a $495 retainer. Our 3% commission is paid from the seller’s side of the deal.
The short version
- Renting is not throwing money away.
- It buys you time and flexibility.
- Buying only pays when you stay long enough.
When is renting the smarter call?
Rent, for now, if any of these are true:
- You might move within two or three years.
- Your income or job is still settling.
- You have not saved a down payment, closing costs and a cushion.
- Your debts are high.
Renting buys you flexibility, and time to get your money ready. There is no shame in that. The costs of buying and selling too soon can wipe out any gain.
When does buying start to make sense?
Buy when the pieces line up:
- You plan to stay at least three to five years.
- Your income is stable.
- You have your down payment, closing costs and a cushion.
- A mortgage payment fits your budget comfortably, not just barely.
When you stay long enough for owning to pay off, your payments build your equity instead of a landlord’s.
What do the numbers look like in London?
Start with what homes cost here. London’s average sale price was $591,927 in September 2026 (source: LSTAR Residential Market Activity Report, September 2026). That average blends condos with detached homes, so your price band matters more than the average.
First-time buyers also get real help:
- Up to $4,000 back on Ontario’s land transfer tax. You must never have owned a home anywhere in the world (source: Ontario.ca (opens in a new tab)).
- The First Home Savings Account. Your room in the first year you open one is $8,000 (source: Canada.ca, FHSA (opens in a new tab)).
- The RRSP Home Buyers’ Plan. The withdrawal limit is $60,000 (source: Canada.ca, Home Buyers’ Plan (opens in a new tab)).
But owning also carries costs renters never see: property tax, maintenance, insurance and the cash to buy and sell. A fair comparison counts all of it, not just rent versus mortgage.
| Each month | Renting | Owning |
|---|---|---|
| Housing payment | Your rent | Your mortgage payment |
| Property tax | Not a separate bill | Yours |
| Insurance | Tenant insurance | Home insurance |
| Repairs and upkeep | Your landlord’s job | Yours |
| Condo fees | None | If you buy a condo |
| One-time costs | Moving | Land transfer tax, legal fees and title insurance. Later, the costs to sell. |
How much money do you need to buy a house in Ontario?
You need three things: a down payment, closing costs and a cushion. Closing costs include land transfer tax, legal fees and title insurance. The Buyer Closing-Cost Calculator below shows your cash to close at any price.
How much is rent in London, Ontario?
We don’t publish rent figures. CMHC does: its free Housing Market Information Portal (opens in a new tab) has rental data down to the neighbourhood.
Your own rent is the number that matters. Put it in the first row of the table above.
Run your own numbers before you decide
Do not compare rent to a mortgage payment alone. See your cash to close and your monthly picture first. Start with the Buyer Closing-Cost Calculator. Then get pre-approved to learn your budget.
Is there a rent vs buy calculator for Ontario?
We don’t have a rent-vs-buy calculator. Use the table above for the monthly side, and the Buyer Closing-Cost Calculator for the one-time cost to buy.
Which two questions decide rent or buy?
The question is not whether buying beats renting. It is this: how long will I stay, and is my money ready? Answer those two, and the choice usually answers itself.
What does it cost to buy a home with us?
A $495 retainer to start. Our 3% commission is paid from the seller’s side of the deal. If a seller offers our brokerage less than 3%, you do not pay the difference.
Every home you buy with our team is backed two ways
First, a 1-Year Canadian Home Shield SafeClose™ Warranty: up to $15,000 of protection, $100 deductible. It is paid for by our team and active the day you take possession.
Second, our Love Your New Home Guarantee. If within 24 months it isn’t right, we list it for free: 0% listing-side commission. That applies when you buy your next home with us, one of equal or greater value. You remain responsible for the buyer’s agency fee. What it costs to buy a home with us.
Who this is not for
If you want someone to cheer you into a home you can’t comfortably carry, we’re not your team. We would rather help you buy well next year than push you into a home now.
What London buyers say about working with us
★★★★★All the way from the start of the house search, Ken was there to help at every step. From setting up search criteria that exactly met our needs, to getting viewings scheduled, to providing honest feedback about the properties (which is often rare for most agents); Ken went above and beyond our expectations. 10/10 experience with Ken.
J H · Buyer · Apr 2023 · via Google
4.9 average from 14 Google reviews, as shown on our reviews page (October 2026). Read every review in full →
The honest takeaway
Not sure yet? That is useful too. It often means renting one more year while you get ready. Smart, unglamorous and correct. When you are ready, we will tell you. Even if the answer is “not yet.”
Common questions about renting vs buying in London
Is renting really throwing money away?
How long do I need to stay for buying to make sense?
Is it cheaper to buy or rent in London, Ontario?
What if I want to buy but am not financially ready?
Does buying always build wealth?
Is it worth it to buy a house in Canada?
Is there a rent vs buy calculator for Ontario?
What help can a first-time buyer get in Ontario?
Not sure which is right? Let’s think it through.
Fifteen minutes, no obligation, no pressure to buy. We will look at your numbers and your timeline, and tell you what we see. Even if the answer is to keep renting for now. If you do buy with us, the home comes with a 1-year warranty and our Love Your New Home Guarantee. The guarantee lasts 24 months. Your next home with us must be of equal or greater value. The guarantee covers the listing-side commission only.
About Ken Small
Ken Small, REALTOR®, has been a real estate agent in London since 2003. He leads the Ken Small Real Estate Team at Century 21 First Canadian Corp., Brokerage. The office is at 420 York Street, London, ON N6B 1R1. RECO #4727293. Meet the team →