Builders Paying Your Bills? What London Ontario’s Smart Start Program Really Says About the Market

Market Insights
Written By Jeff Dinsmore

When homebuilders start paying your hydro bill, you know the market has shifted.

Foxwood Homes in London, Ontario, just launched a new program called StartSmart – offering up to $12,500 toward property taxes, utilities, and hot water heater rentals for the first year if you buy one of their homes.

Sounds generous, right? But here’s the truth: this isn’t just about helping buyers, it’s to help them push sales in a local market that’s slowed down.

Why London, and why now

London isn’t Toronto. It’s not Kitchener-Waterloo or Guelph. Those cities, even when sales slow, are still tied closely to the GTA commuter belt and investor demand.

London is different. It’s more local, less speculative, and when buyers hit pause, the slowdown shows up quickly.

Even Ontario’s housing minister admitted the market has “come to a standstill.” RBC recently called Ontario the “root of the housing crisis.” Against that backdrop, builders like Foxwood are scrambling to move inventory.

What Foxwood’s Start Smart actually covers

The program is marketed as a way to ease “financial strain in year one.” Buyers can get credits applied to:

  • Property taxes

  • Electricity, water, and natural gas

  • Hot water heater rentals

…up to $12,500 in total.

For many families, that wipes out a big portion of the surprise costs that hit after closing. But don’t mistake this for long-term affordability. It’s a short-term sweetener to get hesitant buyers signing on the dotted line.

An excerpt from Foxwood Homes’ website - StartSmart

Incentives = a stalling market

Every cycle, you see the same thing when demand dries up:

  • 2017 slowdown → “Free granite countertops” and “free finished basements.”

  • 2020 uncertainty → “Builder covering closing costs.”

  • 2025 stall → “We’ll pay your bills.”

The pattern doesn’t lie. When builders start throwing in freebies, it means the market is slowing and buyers have leverage.

What homebuyers should know

  • Incentives are a symptom, not a solution. Free utilities don’t mean homes are cheaper - they mean sales are sluggish.

  • You can negotiate. If a builder is willing to put $12,500 on the table, what else might they offer? Upgrades, price cuts, flexible deposits - push back and see what else they’re willing to put out for you.

  • Don’t get blinded by year one. The bills will come due in year two. Make sure the numbers work long-term, not just while the builder is footing the tab.

The big takeaway

Foxwood’s Start Smart program isn’t just a marketing gimmick or some great freebies. It’s a window into the state of one of Ontario’s housing markets.

In London especially, it shows how hesitant buyers have become - and how far builders are willing to go to keep projects moving.

If you’re buying in this market, don’t get swept up by shiny incentives. Get clear on your real carrying costs and what you can afford long after the giveaways are gone. By speaking with a mortgage broker, you’ll be able to ensure you’re prepared and this is the right step for you.

Thinking about buying new construction? Let’s crunch the numbers together before you commit. Book a call at VeloMortgage.ca and I’ll help you separate the real savings from the marketing gimmicks.

Jeff Dinsmore
Mortgage Broker
FSRA # 10315
VeloMortgage.ca
TMG - The Mortgage Group

Jeff Dinsmore
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