The comparison
London, Ontario vs Toronto: what it really costs to live in each
"London is so much cheaper" is the line everyone repeats. For housing, it's usually true. For some other costs, it's less clear-cut, and a few things cost more. This site goes line by line, links to the original data, and tells you where the differences actually lie.
The summary
| Category | London | Toronto | Bottom line |
|---|---|---|---|
| Buying a home | Substantially lower prices for comparable homes | Among the highest in Canada | London's biggest advantage |
| Land transfer tax | Provincial tax only | Provincial and municipal tax | Roughly half the tax on the same price |
| Rent | Lower | Higher | Gap smaller than for purchase prices |
| Property tax rate | Higher rate | Lower rate | Lower values in London partly offset the higher rate |
| Electricity & gas | Similar | Similar | Same provincial pricing; delivery charges vary |
| Car insurance | Often lower | Often higher | Highly dependent on postal code and driver |
| Transportation | More driving, often 2 cars | Viable car-free in many areas | Can erode London's savings |
| Childcare | Province-wide fee reductions | Province-wide fee reductions | Fees similar where available; check waitlists |
| Incomes | Generally lower | Generally higher | Remote work changes the math |
Each row links to a detailed page with sources. Bold marks the generally cheaper option, not a precise figure.
The question isn't whether London is cheaper. It's whether it's cheaper for your household, once you count cars, commutes and income.
How to use this site
Most cost-of-living sites give you a single index number. That's fine for a headline, but it hides the details that decide whether a move works. Two households can make the same move and see very different results. A remote worker who sells a Toronto condo and buys a London house can come out far ahead. Someone who takes a pay cut to work locally and adds a second car might find the savings narrower than expected.
So we've broken it down by category. On each page you'll find:
- What drives the difference between the two cities
- Where to find the current numbers from an official or industry source
- How to work out the figure for your own situation
We deliberately avoid quoting market averages that will be out of date in a month. Where a current figure is essential, we link directly to the source that publishes it, and note when we last checked.
Every section
- Housing costsPurchase prices, what your budget buys, and the land transfer tax difference worked out in dollars.
- RentHow rents compare, where to find current data, and why the gap is smaller than for buying.
- Property taxesWhy London's rate is higher, and how to calculate your actual bill.
- Utilities & insuranceHydro, water, gas, internet, home and auto insurance.
- TransportationCars, transit, parking, tolls, and the cost of commuting back to the GTA.
- Childcare & family costsChildcare fees, activities, and space for a growing family.
- Income & jobsWages, remote work and the "Toronto salary, London house" strategy.
- Lifestyle trade-offsThe non-financial costs and benefits that matter just as much.
- Sources & methodologyWhere our information comes from, and how to check it yourself.
Where the savings usually come from (and go)
For a typical household that buys a home in London after living in Toronto, the savings tend to come mostly from three places: a smaller mortgage (or a mortgage instead of rent), a lower land transfer tax bill at purchase, and often cheaper auto insurance per vehicle. The new costs show up in three places too: a higher property tax rate, higher utility bills in a bigger home, and more driving, sometimes including a second car or regular trips back to the GTA.
For most households that keep their income, the first group outweighs the second by a wide margin. For households whose income drops, the margin can shrink. That's why we suggest building your own comparison, category by category, rather than relying on anyone's headline number, including ours.
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.