Average sale price, City of London (as reported by Strathroy Today, citing LSTAR)
$596,951As of October 2026.Source
Average sale price, whole LSTAR region
$601,289As of October 2026.Source
Sales-to-new-listings ratio, LSTAR region
39%As of October 2026.Source
Population of the City of London, and growth since 2016
422,324 (up 10.0%)As of 2021 Census.Source
On this page

London is a regional centre with prices well below the GTA, and that single fact shapes everything about borrowing against a home here: lower values mean smaller dollar margins and less room for a cushion.

London’s $596,951 against a regional $601,289

The London and St. Thomas Association of REALTORS, as reported by the Strathroy Today, counted 557 sales in October 2026, down 7.5% from October 2025 and roughly flat on September’s 561. The regional average price was $601,289, down from $611,509 in September. The City of London averaged $596,951, up from $591,927 in September. St. Thomas averaged $513,697 and Strathroy-Caradoc $569,023.

The sales-to-new-listings ratio rose to 39% from 34.7% in September, still below the 45% to 65% range the report links to a balanced market. When that ratio is low, buyers have more choice, which can pull comparable sales down. The report’s summary was that uncertainty continues to shape decisions by buyers and sellers.

London’s 2021 Census population was 422,324, up 10.0% from 383,822, with 543,551 in the London census metropolitan area.

When tax arrears are the reason

Some people look at a second mortgage because they have fallen behind on something. If property tax arrears are the problem, the clock matters. The City of Owen Sound explains the process under the Municipal Act: once taxes remain unpaid for the two years before January 1 of any year, the municipality can register a tax arrears certificate. The owner then has one year from registration to pay the cancellation price, or the property can be sold. After registration, partial payments are not accepted unless an extension agreement was signed before the year ends.

That page is for one town, so use it as a guide and check London’s own tax office for dates, penalties and payment plans. Our property tax arrears page goes through what to do first. A second mortgage can pay the cancellation price, but only if the room exists and the total cost is worth it.

What a $50,000 loan and a $40,000 tax loan leave behind

Use the 80% limit that the Financial Consumer Agency of Canada describes. The first example above uses London’s average with $380,000 owing: $97,561 of room, $47,561 left after a $50,000 loan. The second uses St. Thomas with a $40,000 tax-arrears loan: $50,958 of room, $10,958 left.

In both, the margin after the loan is thin enough that a modest fall in value would remove it. Try your own balance in the calculator. If credit is part of the problem, read second mortgages with bad credit before you accept an offer, and weigh consolidating other debts in the same loan only if the numbers work.

Fees, and CMHC’s regional view

Ontario’s land transfer tax applies to purchases, and we found no such line for registering a second mortgage on a home you own. Expect the lender’s fee, a broker fee, legal costs, an appraisal and the registration fee, itemised on the Ontario page.

CMHC’s October 27, 2026 release says Ontario’s arrears reached 0.32% in the second quarter and will keep rising through mid-2027, mostly in the Greater Toronto and Hamilton Area and southwestern Ontario. It names trade pressure on manufacturing, including automotive. London is generally counted as southwestern Ontario, but CMHC gives no London number.

The wider London area

Statistics Canada’s 2021 counts for the places around the city give a sense of the region LSTAR covers: Middlesex Centre had 18,928 people, Thames Centre 13,980, Central Elgin 13,746 and Southwold 4,851. Prices in those towns and in St. Thomas can differ from the city’s, and LSTAR’s regional average of $601,289 blends them.

Because the board’s average mixes places, your own appraisal matters more than usual. Bring the property tax bill, the current mortgage statement and a list of what you owe to any conversation, and expect to be asked what the loan is for and how it will be repaid.

Checking a licence before a London loan

Private lenders in Ontario are reached through Level 2 agents and brokers. The public register will confirm the licence number you are given.

If you are behind on taxes or payments, speak to the city or your lender before anyone else. Once your London numbers are written down, you can request a licensed review. Nearby markets are covered on the Kitchener and Windsor pages.

A London home at the October 2026 city average with $380,000 owing

The $596,951 value is LSTAR's October 2026 average price for the City of London, used as a stand-in for an appraisal. The $380,000 first mortgage and $50,000 loan are made up. The 80% ceiling is the one the Financial Consumer Agency of Canada describes.

Home value used
$596,951
80% of the home value
$477,561

$596,951 times 0.8, rounded

Room under the ceiling
$97,561

$477,561 minus $380,000

Combined loan-to-value with a $50,000 loan
72.0%

$430,000 owed on $596,951

Room left after the $50,000 loan
$47,561

A $50,000 loan uses about half of the room. That is workable but not spacious.

Illustration only. The figures are made up to show the arithmetic. They are not a quote, a rate or an offer.

A St. Thomas home at the October 2026 average, $40,000 to clear tax arrears

The $513,697 value is LSTAR's October 2026 average price for St. Thomas, used as a stand-in for an appraisal. The $360,000 first mortgage and $40,000 loan are made up, with the loan imagined as covering property tax arrears and costs.

Home value used
$513,697
80% of the home value
$410,958

$513,697 times 0.8, rounded

Room under the ceiling
$50,958

$410,958 minus $360,000

Combined loan-to-value with a $40,000 loan
77.9%

$400,000 owed on $513,697

Room left after the $40,000 loan
$10,958

The loan fits but leaves little margin. Unpaid taxes plus lender fees can grow past the room, so ask the city for the exact balance first.

Illustration only. The figures are made up to show the arithmetic. They are not a quote, a rate or an offer.

Questions people ask

What does a 39% sales-to-new-listings ratio mean for London sellers?

It means about 39 sales for every 100 new listings, which the Strathroy report says is below the 45% to 65% range generally linked to a balanced market. Buyers have the upper hand, and appraisals may reflect softer prices.

How do London and St. Thomas prices compare when planning to borrow?

October 2026 averages were $596,951 in London, $569,023 in Strathroy-Caradoc and $513,697 in St. Thomas. Lower prices mean thinner room under a lender's ceiling, so run your own balance and a realistic value through the numbers.

Can London's two-year property tax rule take my home?

Under Ontario's Municipal Act, a city can register a tax arrears certificate once taxes stay unpaid for the two years before January 1, then you have one year to pay the full cancellation price. Ask London's tax office for its dates and any payment plan.

Does CMHC count London in the region where mortgage stress is rising?

CMHC says arrears are rising most in the Greater Toronto and Hamilton Area and southwestern Ontario. London is generally described as southwestern Ontario, but CMHC's release names no cities and gives no London figure.

Nearby cities

Keep reading

Sources