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Find the best mortgage rate in Ontario

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Current Ontario mortgage rates

The rate table shows 5-year fixed mortgage rates in Ontario. To compare other rate types and terms, click on the filters icon beside the down payment percentage.

As of:

RateProviderPayment

Canadian Lender

$2,077

Meridian Credit Union

$2,098

Desjardins

$2,141

Canwise

A Ratehub Company

$2,141

Big 6 Bank

$2,174

TD Bank

$2,185

Ontario mortgage rates: FAQ

Will mortgage rates continue to go down in 2024?


Will mortgage rates continue to go down if inflation decreases more?


What are the current mortgage rates in Ontario in 2024?


What bank currently has the best mortgage rate in Ontario?


What is today’s prime rate and how does it affect mortgage rates in Ontario in 2024?


What is the average 5-year mortgage rate in Ontario?


WATCH: October 23, 2024 Bank of Canada announcement

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Getting the best mortgage rates in Ontario

Using our rate tables, you can compare today's best mortgage rates in Ontario from the Big 5 Banks, small banks, credit unions and top mortgage brokers, instantly, all in one place. Shopping around is critical if you want to find the best mortgage for your needs, and can save you thousands of dollars. 

Best mortgage rates in Ontario +

Ontario at a glance

  • Population: 14.83 million - most populous province in Canada, with just over 38% of the country’s population
  • Average Household Income: $74,287
  • Percentage of Homeowners: 70%

October 23, 2024: Bank of Canada announcement highlights

On October 23, 2024, the Bank of Canada reduced its target for the Overnight Lending Rate by 0.5%, lowering it from 4.25% to 3.75%. This is the fourth consecutive rate cut since June, bringing the total reduction to 125 basis points from the year’s peak of 5%.

  • The BoC cited falling inflation, with the Consumer Price Index (CPI) at 1.6%, below the 2% target, as a primary driver of the cut. Weak GDP growth and five consecutive quarters of declining GDP per capita have also contributed to the decision, highlighting the ongoing economic slowdown.
  • Canadians with variable-rate mortgages and HELOCs will benefit as the prime rate drops to 5.95%, reducing their interest payments or monthly installments.
  • Fixed mortgage rates, while not directly tied to the Bank’s rate, may also drop, as five-year bond yields have already fallen to 2.9%.
  • Savers and passive investors should take note that prime-based savings products, like high-interest savings accounts and GICs, will offer lower returns following this cut. Acting now to lock in current rates could secure better returns before further reductions.
  • With another 50-basis-point cut anticipated in December and new mortgage policy reforms coming into effect on December 15, there is hope that real estate activity will pick up pace.

Ontario housing market: October 2024 update

On October 15, 2024, the Canadian Real Estate Association released the data on the national housing market for September, covering sales activity, average price trends, and overall supply and inventory.

According to the CREA, home sales increased 9.8% year over year, with 13,251 properties sold in Ontario in September. Buyer activity has picked up, and sellers have responded in kind—new listings surged to 38,820 homes, reflecting a 7.8% increase compared to the same period last year. The overall inventory now stands at 4.9 months, indicating a moderate level of available supply.

While buyer demand has grown, prices have remained relatively stable. Ontario’s average home price in September increased slightly by 0.2%, bringing it to $851,478.

Market conditions are still favorable for buyers, much like last September. The sales-to-new-listings ratio rose slightly to 34.1%, up from 33.5% a year ago. CREA considers a ratio between 40%-60% to represent a balanced market, with ratios below 40% indicating a buyers' market and above 60% indicating a sellers' market.

Read more: National home sales rise in September following summer rate cuts

Will mortgage rates decrease if inflation continues to fall?

On October 15, Statistics Canada reported a 1.6% year-over-year rise in the Consumer Price Index (CPI) for September, down from 2.0% in the previous month. 

Read: Canadian CPI falls to 1.6% in September, increasing chance of half-point rate cut

This downward trend in inflation opens the door for potential further cuts to the Bank of Canada’s (BoC) overnight lending rate. With a half-point rate cut already expected in the Bank’s upcoming October 23 announcement, the focus now shifts to whether additional cuts could follow in the coming months.

The overnight rate directly influences the prime rate set by lenders, which in turn is used to set the price of variable mortgage rates and home equity lines of credit (HELOCs). Therefore, when the BoC raises its rate, it makes it more expensive for consumers and businesses to borrow money.  This leads to less consumption (less spending and borrowing), which in turn decreases the rate of inflation. Alternatively, when the pace of inflation falls below the BoC’s target, it cuts the overnight rate to make it cheaper to borrow, thereby stimulating the economy.

Between June and September 2024, the BoC has already reduced rates three times, bringing the benchmark borrowing rate down to 4.25%. 

Read more: Bank of Canada cuts target interest rate by 0.25% in September 2024 announcement

While fixed mortgage rates are not directly tied to the Prime rate or the BoC’s overnight rate, they are influenced by 5-year bond yields, which have recently fallen to around 2.7%. This drop could give lenders room to further reduce fixed mortgage rates. 

How do I get the best mortgage rate in Ontario?

 As home to Canada's financial capital, Toronto, Ontario naturally has an extremely competitive mortgage market. All of the Big 5 Banks have their headquarters in Toronto, as do major Canadian credit unions including Meridian Credit Union, DUCA Financial Services Credit Union and Alterna Savings and Credit Union. Many other smaller lenders, credit unions and mortgage brokerages are also located in Ontario. 

With such a variety of options, it's important to remember that the best mortgage rate is not always the lowest rate; rather, it's the one that meets your needs and best suits your financial situation. That makes it all the more crucial that you compare multiple lenders and speak with a mortgage broker. They can walk you through different mortgage products and help you understand the benefits and drawbacks of each so that you can make an informed decision.  

What factors affect the mortgage rate I get?

The mortgage rate that you qualify for will depend on a number of factors, some of the most important of which are: 

  • Your down payment - The size of your down payment will determine the amount of insurance your mortgage will require. The larger your down payment, the less insurance your mortgage will require. Though it may seem counter-intuitive, uninsured mortgages actually have higher rates. This is because lenders take on more risk for these mortgages since they cannot get insurance on them. Though you may not get the lowest rate, it is usually always better to put a larger down payment if you can afford it because you won’t have to pay for mortgage insurance. 
  • Your amortization period - Mortgages with amortization periods greater than 25 years are not usually insurable and therefore come at a higher rate. However, a longer amortization period allows you to have a lower monthly payment.
  • What the property will be used for - Will you be living in the property? Mortgage rates for rental properties are typically higher than for those that are owner-occupied. 
  • Mortgage type - Mortgage rates for refinances are usually higher than rates for renewals and purchases.
  • Your employment status - You need to provide proof of income in the form of paystubs and/or tax documents such as your Notice of Assessment (NOA). If you're self-employed, work on commission, or otherwise do not have a steady income, it can be more complicated and/or expensive. 
  • Your credit score - Your credit score may affect the type of lenders that will work with you. If you have bad credit, you may not qualify for a Big Bank mortgage.
  • Your debts - Lenders will look at your debt service ratio when considering whether to approve your mortgage. Carrying an excessively high amount of debt negatively impacts your debt service ratio as well as lowering your credit score. 

Historical trends in Ontario mortgage rates 

Ontario mortgage rates rise and fall, as do rates across Canada. Here’s an interactive chart showing the lowest mortgage rates in Canada over the past few years to give you an idea of where we are today.

Land transfer tax in Ontario

Land transfer taxes are often overlooked, despite being one of the biggest closing costs when purchasing a home. For people in Toronto, a land transfer tax is levied by the City of Toronto, in addition to Ontario’s provincial land transfer tax.

Ontario land transfer tax

In Ontario, land transfer taxes are based on the purchase price of the property, with the tax rate increasing as the price of the home rises. Here’s a breakdown of the rates:

Source: Ontario Ministry of Finance

*The $2 million bracket was introduced on January 1st, 2020.

 

Toronto Land Transfer Tax

When purchasing a home in Toronto, you’ll also pay a municipal land transfer tax. Toronto’s land transfer tax applies within certain boundaries: Steeles Avenue to the North, Etobicoke to the West, Scarborough to the East, and Lake Ontario to the South.

Here are the current Toronto land transfer tax rates:

Source: City of Toronto

 

Ontario first-time home buyer programs

In an effort to make it easier for first-time home buyers to get into the market, there are several programs and rebates available in Ontario. These are available to citizens or permanent residents of Canada who haven’t owned property before. 

Ontario’s Land Transfer Tax Rebate for First-Time Home Buyers provides a rebate of the full amount of your land transfer tax, up to a maximum of $4,000. If you are buying with a spouse who does not qualify, you will only be eligible for 50% of the refund. 

Toronto’s First-Time Home Buyers Land Transfer Tax Rebate provides a rebate of the full amount of your municipal land transfer tax, up to a maximum of  $4,475. This rebate is available regardless of whether you buy a townhouse, house, or condo. You can use the Toronto land transfer tax rebate in addition to the Ontario land transfer tax rebate. 

Learn more by reading our guide to First-Time Home Buyer programs in Canada.

Ontario non-resident speculation tax

In an effort to prevent foreign investors from inflating housing prices in Ontario, the Ontario government places a 15% tax on all purchases of residential properties by foreign buyers in the Greater Golden Horseshoe area. This is on top of any land transfer taxes. Foreign buyers include overseas corporations, as well as individuals who aren’t Canadian citizens or permanent residents.

More Homes Built Faster Act

On October 25, 2022, the government of Ontario introduced the More Homes Built Faster Act, which is part of a long-term strategy to increase the housing supply and ensure that affordable housing options exist for Ontarians. Significantly, the provincial government aims to facilitate the construction of 1.5 million new homes over the next decade.

More recently, on May 10, 2023, the City of Toronto adopted two amendments - the Official Plan Amendment and the Zoning By-law Amendment - to permit multiplexes of up to fourplexes on residential lots across the city. These amendments are not yet in effect, but have the potential to create a significant amount of sorely needed new housing options for Toronto residents.

Jamie David, Director of Marketing and Head of Mortgages

Jamie has 15+ years of business and marketing experience. She contributes her mortgage expertise to The Globe and Mail and authors Ratehub’s mortgage and homebuying guides. read full bio

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