Southwest Ontario's largest city — where Western University, London Health Sciences Centre, and population growth from GTA migration converge to create Ontario's most compelling cash-flow multifamily market.
London consistently ranks as Ontario's top market for investors prioritizing cash flow. With cap rates reaching 6.5% and acquisition prices well below the GTA, deals that generate positive cash flow from day one are genuinely achievable here.
London is the rare Ontario market where a 10-unit building acquired at a 5.5% cap rate with MLI Select financing can generate meaningful positive monthly cash flow — not on paper, in real numbers. Western University (40,000+ students), London Health Sciences Centre (15,000+ healthcare workers), and consistent population growth from GTA migration create layered demand that insulates landlords from vacancy risk while supporting ongoing rent growth.
London's rental market spans student housing, healthcare professional, and family rental segments. Each submarket has distinct yield and management profiles.
| Submarket | Avg 2BR Rent | Yield Profile | Tenant Base | Investor Notes |
|---|---|---|---|---|
| Old North / Western Campus | $1,700–$2,000 | Highest yield | Western U students | Per-room rents $650–$950/mo. Highest gross yield in the city. |
| Downtown London | $1,800–$2,200 | Strong yield | Professionals, healthcare workers | Value-add opportunity in older stock. Active revitalization. |
| White Oaks / South London | $1,600–$1,900 | Highest raw yield | Families, service workers | Lowest acquisition prices. Best cash-on-cash at conventional leverage. |
| Masonville / North London | $1,900–$2,200 | Good yield | Healthcare workers, professionals | LHSC and St. Joseph proximity. Stable long-tenure tenancy. |
London implemented the provincial as-of-right 4-unit policy across residential zones. The Old North and Western campus corridor is particularly relevant — older detached homes that previously supported 1–2 units can now be configured as 4-unit student properties without rezoning, materially changing the return profile.
London is among Ontario's strongest MLI Select markets. Rents throughout the city sit well below CMHC's affordability thresholds for the London CMA, enabling straightforward achievement of 100+ affordability points.
For a 10-unit building in South London acquired at $1.6M, MLI Select 50-year amortization versus conventional 25-year terms reduces monthly debt service by $2,800–$3,400 — often converting a near-breakeven scenario into meaningful positive cash flow.
Full program details in our CMHC Financing Guide.
London is the market we recommend to investors who need their portfolio to cash flow from day one. The combination of high cap rates and MLI Select leverage efficiency is unmatched in Ontario.
London's sub-$700K entry-level multifamily is one of Ontario's only markets where a 4-plex can generate positive cash flow with a 10% down payment. Target older stock in South London with below-market rents that reset to market on tenant turnover.
Best for: Investors with $100K–$300K equity seeking immediate cash-flow positive entry into Ontario multifamily.
London has deep supply of 6–20 unit walk-up buildings priced $1.2M–$3.0M. MLI Select transforms these assets: 50-year amortization, 5% down qualifying, and strong affordability points. London is one of the best markets in Ontario to execute a pure MLI Select acquisition strategy.
Best for: Investors with $200K–$600K equity targeting their first commercial multifamily with positive cash flow from acquisition.
Build a portfolio of 3–6 unit properties within 1km of Western's main campus. Per-room rents of $650–$950/month in 4–6 bedroom configurations significantly outperform 2BR family configurations on a per-square-foot basis.
Best for: Active investors or those with property management support who want maximum yield in Ontario's university market.
Yes — London is one of Ontario's only markets where positive cash flow at conventional leverage is achievable. With MLI Select 50-year amortization, even 5.0% cap rate assets can generate meaningful monthly cash flow.
Yes. London's population grew by approximately 12,000 in 2024 through immigration and GTA migration. Rents increased 6–8% year-over-year in the 2BR segment over the past three years.
London has lower appreciation upside than Toronto over long hold periods, but significantly better cash flow profiles. The diversified tenant base — students, healthcare, government, professional — reduces single-sector exposure risk.
Yes. All advisory services are conducted virtually. Strategy sessions, MLI Select modelling, and acquisition analysis are available province-wide.
A strategy session with Cornell K. Haynes, CEO of Perseverance Asset Management, covers your specific property — cap rate analysis, MLI Select eligibility, and a 10-year proforma built on real numbers. Mortgage financing through CornellMortgages.ca.
