Ironstone Building Co. launches mortgage program to support first-time buyers and clear inventory
Faced with rising unsold inventory and a sluggish housing market, a London-based developer is rolling out a bold mortgage incentive to help jumpstart sales and support first-time homebuyers.
Ironstone Building Co., in partnership with Libro Credit Union, has launched HomeStart, a new program offering up to $100,000 in zero-interest loans to ease down payment burdens for qualified buyers.
The move comes as the London housing market continues to cool. According to the London and St. Thomas Association of REALTORS (LSTAR), home sales in April 2025 were down 14.3% year over year, with just 653 properties sold. Active listings jumped nearly 20%, pointing to growing inventory and buyer hesitation in the face of ongoing economic uncertainties.
“Our inventory numbers have gone up a little bit over the past year, and we wanted to do something to spark some sales, but also try to help solve the attainability component of a purchase,” HomeStart president Dave Stimac said in an interview with The London Free Press.
How the program works
Through the HomeStart initiative, buyers who finance their new home through Libro Credit Union can apply the interest-free loan toward their down payment. For example, a typical $700,000 home would normally require a 20% down payment, or $140,000. With HomeStart, eligible buyers could receive $100,000 interest-free, leaving them responsible for only $40,000 upfront to qualify.
The loan comes with flexible terms. Borrowers won’t need to make payments on the loan for the first 10 years, after which it becomes payable at second mortgage rates. If the buyer sells the home before the 10-year mark, the loan becomes immediately due. However, Ironstone will forgive 25% of the loan if the buyer purchases a second property from them within five years.
“You can be cynical and say, ‘Well, you know, in 10 years they’re going to charge second-mortgage rates,’ but the point of this thing is to help people attain the house today,” Stimac said.
He noted that most buyers move within seven years of their first home purchase, suggesting the program could help accelerate timelines for move-up buyers.
Firas Halabi, senior manager of home financing at Libro, emphasized that down payments, not monthly affordability, remain the biggest hurdle for many would-be homeowners.
“A lot of individuals don’t have an issue making the monthly payments,” Halabi said. “Some people are already paying rent in excess of $3,000 or $4,000 a month—they just never had the ability to come up with the down payment.”
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The offer is limited and applies only to a select number of Ironstone’s townhomes, condos, and single-family homes. The program will end once the designated inventory is sold.
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