Housing
Housing costs: London vs Toronto
Housing is where the gap between the two cities is widest, and the main reason most people consider the move. Here's how to compare prices properly, plus a cost that's easy to overlook: Toronto's second land transfer tax.
Comparing purchase prices
Both cities' real estate boards publish monthly statistics, and both use the MLS® Home Price Index (HPI), which tracks a "benchmark" home of each type to smooth out month-to-month swings in the mix of homes sold. That makes the HPI benchmark the most like-for-like comparison available.
- London: the London and St. Thomas Association of REALTORS (LSTAR) publishes monthly market reports, including benchmark prices by home type and by area.
- Toronto: the Toronto Regional Real Estate Board (TRREB) publishes its monthly Market Watch, with HPI benchmarks for the City of Toronto and the wider GTA.
| Home type | London benchmark | GTA benchmark (all TRREB areas) |
|---|---|---|
| Single-family detached | $600,700 | $1,196,400 |
| Townhouse | $421,500 | $668,800 |
| Apartment / condo | $317,100 | $527,200 |
Sources: LSTAR, September 2026 release (London and St. Thomas region; the LSTAR composite benchmark was $552,500); TRREB MLS® HPI tables, September 2026 (all TRREB areas across the GTA; composite $917,600). Both are for the same month. City-of-Toronto-only benchmarks are in the same TRREB tables.
Why "average price" can mislead
Average sale prices swing with the mix of homes sold that month. A few luxury sales can push the average up, and a busy month for condos can pull it down. When you compare cities, use benchmark (HPI) prices for the same home type and the same month. Better still, compare actual recent sales of the type of home you'd buy in the specific neighbourhoods you'd consider.
What the gap means in practice
For most buyers, the meaningful question isn't "how much cheaper?" but "what does my budget buy?" A budget that buys a one-bedroom condo or an older semi in much of Toronto can often stretch to a detached house with a yard in many London neighbourhoods. The lower price also reduces:
- Your down payment: Canada's minimum down payment is a percentage of price, so a lower price means a smaller minimum.
- Mortgage default insurance, if you put down less than 20%, since the premium is a percentage of the loan.
- Land transfer tax: lower prices and no municipal tax (see below).
- Monthly payments, on a smaller mortgage.
The land transfer tax difference
This one is concrete and often overlooked. Buyers in Ontario pay the provincial land transfer tax. Buyers in the City of Toronto also pay Toronto's Municipal Land Transfer Tax (MLTT). For homes up to $2 million, Toronto's municipal rates mirror the provincial ones, which effectively doubles the tax. London has no municipal land transfer tax.
| Portion of price | Rate | London (Ontario LTT) | Toronto (Ontario LTT + MLTT) |
|---|---|---|---|
| First $55,000 | 0.5% | $275 | $550 |
| $55,000–$250,000 | 1.0% | $1,950 | $3,900 |
| $250,000–$400,000 | 1.5% | $2,250 | $4,500 |
| $400,000–$600,000 | 2.0% | $4,000 | $8,000 |
| Total | $8,475 | $16,950 |
Calculated from the Government of Ontario land transfer tax rates and the City of Toronto MLTT rates. First-time buyers may be eligible for refunds of up to $4,000 (Ontario) and a separate Toronto MLTT rebate. Confirm current rates at ontario.ca and toronto.ca.
And in practice the gap is usually larger than this example shows, because the same home costs more in Toronto, so the Toronto buyer is paying both taxes on a higher price.
Mortgage qualification is the same
Canada's mortgage rules don't change by city. The minimum down payment, the federal stress test and mortgage default insurance work identically in London and Toronto. What changes is the size of the numbers you plug in. A lower purchase price means a smaller down payment, a smaller loan and a lower stress-test payment, which can let some households qualify in London for a home type they couldn't qualify for in Toronto.
Ongoing housing costs
Purchase price isn't the whole picture. Compare these too:
- Property tax: London's rate is higher, though it applies to lower assessed values. See property taxes.
- Condo fees: depend on the building, not the city.
- Maintenance: a bigger, older house in London may cost more to maintain than a Toronto condo. Budget roughly 1–2% of the home's value a year as a common rule of thumb.
- Utilities: a larger home uses more energy. See utilities & insurance.
Selling in Toronto and buying in London? Your Toronto sale doesn't trigger land transfer tax (buyers pay it), but you'll have real estate commission, legal fees and possibly a mortgage penalty. Our sister site Toronto to London explains how to sequence the two transactions.
Your local agent
See what your budget actually buys in London
Averages only go so far. The most useful comparison is concrete: what homes like the one you want have recently sold for in the London neighbourhoods you'd consider. Rayna Elabed, a Sales Representative with CENTURY 21 First Canadian Corp., Brokerage in London, can help you look at current listings and recent sales so you can put real numbers against your Toronto costs.
Sources
- Government of Ontario, Land transfer tax.
- City of Toronto, Municipal Land Transfer Tax.
- LSTAR, monthly market reports.
- TRREB, Market Watch.