Find the best mortgage rate 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. 

Update: Ontario buyers now have access to a much larger HST break on newly built homes. Effective April 1, 2026, the province’s temporary expanded rebate removes the full 13% HST on eligible new homes valued up to $1 million, with partial relief available on higher-priced homes. Buyers of homes priced between $1 million and $1.5 million can still qualify for the maximum rebate of $130,000, which may meaningfully lower the upfront cost of purchasing a new build.

Ontario housing market: May 2026 update

On May 14, 2026, the Canadian Real Estate Association (CREA) released its April 2026 housing data for Ontario, showing a small push in buyer activity. Home sales totaled 14,927 in April, up 1.3% compared to the same month in 2025. 

At the same time, the average home price declined 1.8% year over year to $839,112, reflecting continued price softness in the province. New listings also fell, declining 0.8% annually to 41,610 properties. As supply and sales dropped at a similar level, months of inventory stayed stable at 4.5 months year over year.

Ontario’s housing market remained firmly in the buyer’s territory in April. Even though the sales-to-new-listings ratio (SNLR) rose by 0.8% from last year to reach 35.9%, it was still well below CREA’s balanced-market range of 45% to 65%. Readings below 45% are generally associated with buyer-leaning conditions. That means conditions still favored buyers, who continued to benefit from softer prices and more negotiating leverage than they had a year ago.

June 10, 2026: The Bank of Canada announcement highlights

The Bank of Canada held its overnight interest rate at 2.25% on June 10, 2026, choosing to maintain its current policy stance as it continues to navigate a challenging economic environment. The decision reflects the central bank's view that while economic growth has softened, inflation risks remain elevated and require continued vigilance. 

• Homeowners with variable-rate mortgages will continue to benefit from stable payments and borrowing costs, as lenders' prime rates remain unchanged at 4.45%. Variable mortgage rates also remain among the most competitive options available, with the lowest five-year variable rate currently sitting at 3.35%. 
• Fixed mortgage rates, however, remain subject to different market forces. Because fixed rates are tied to Government of Canada bond yields rather than the Bank's overnight rate, they continue to be influenced by investor expectations, inflation concerns, and global events. Ongoing geopolitical uncertainty and higher energy prices have helped keep bond yields elevated, placing upward pressure on fixed mortgage pricing. 
• Borrowing costs on financial products such as personal loans, vehicle financing, lines of credit, and other variable-rate lending products will also remain unchanged. Financial experts suggest Canadians use this period to review their overall financial health. 
• The Bank's latest decision reinforces the growing belief that interest rates may have reached their floor for this cycle. While future policy moves will ultimately depend on inflation and economic performance, the central bank's current messaging suggests Canadians should prepare for a prolonged period of stable borrowing costs rather than expecting further meaningful rate relief.

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%

Will mortgage rates decrease if inflation continues to fall?

On April 20, 2026, Statistics Canada reported that the Consumer Price Index (CPI) rose 2.4% year over year in March, up from 1.8% in February. With the headline figure now above the Bank of Canada’s 2% target, core inflation measures showed mixed movement rather than a decline, with CPI Median holding at 2.3% and CPI Trim edging down slightly to 2.2%.

This adds to the broader picture of a stable economy and inflation — factors that have already pushed the Bank of Canada to resume holding rates. As outlined in the April 29, 2025 announcement, the Bank announced it’ll hold the benchmark rate at 2.25%, marking its fourth consecutive hold.

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.

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 remain around the 3% range. Fixed rates are unlikely to decrease in the near term.

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.

Sources:

1. Ontario.ca
2. CREA
3. Statistics Canada
4. Legislative Assembly of Ontario