“The purpose of the fund is to ensure that repayments from previous loans are reinvested to provide new loans, which creates a sustainable mechanism to support ongoing homeownership opportunities in the City of London and Middlesex County,” said Scott Mathers, deputy manager of housing and community growth, in a statement first reported by CBC.
To qualify, applicants must be first-time buyers earning no more than $95,000 for individuals or $115,000 for families. Eligible properties must be owner-occupied, not exceed $500,000, and require an approved mortgage and home inspection. If a home is sold before the 20-year term ends, the loan and five percent of any capital gains must be repaid.
Mounting mortgage payments nationwide
Calls for the program’s revival comes as many Canadians grapple with a steep rise in monthly housing costs. A recent Zoocasa analysis of 22 cities found that average mortgage payments have jumped more than $1,000 since 2015, with some cities like Toronto and Windsor-Essex seeing increases of over 150% in a decade.
Meanwhile, TD Economics reports a rare decline in total mortgage payments, down 1.7% in late 2024, due to fewer high-balance mortgages entering the market. But that’s small comfort to first-time buyers still facing historically high entry costs and limited affordable inventory.
Many young Canadians are also struggling to save for future home purchases.