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: August 2026 update

On August 18, 2026, the Canadian Real Estate Association (CREA) released its July 2026 housing data for Ontario, showing a small drop in buyer activity. Home sales totalled 16,276 in July, down by 1.3% compared to the same month in 2025. 

At the same time, the average home price increased by 2.7% year over year to $515,740. New listings fell, declining 10.8% annually to 36,945 properties. As supply dropped more heavily than sales, months of inventory dropped by 0.2 to reach 4.5 months in July.

Ontario’s housing market remained firmly in buyer’s territory in July. Even though the sales-to-new-listings ratio (SNLR) rose by 4.2% from last year to reach 44.1%, 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 favoured buyers, who continued to benefit from softer prices and more negotiating leverage than they had a year ago.

What Canada's latest interest rate decision means for your mortgage

On September 2, 2026, the Bank of Canada held its overnight rate at 2.25%. The decision was widely expected, with the Bank continuing to take a cautious approach as inflation remains elevated and tariffs and higher energy prices add uncertainty to the outlook.

• For homeowners with variable-rate mortgages, this announcement means rates remain unchanged. Since the Bank's policy rate is holding steady, lenders' prime rates stay at 4.45%, keeping variable mortgage rates and related borrowing costs steady.
• Because fixed rates are tied more closely to Government of Canada bond yields, they may continue to fluctuate as markets react to inflation, energy prices and geopolitical developments. Borrowers can still find some shorter-term fixed options below 4%, including a two-year fixed rate at 3.89% and a three-year fixed rate at 3.94%, while the lowest five-year fixed rate sits at 4.09%.
• The Bank's decision also means borrowing costs remain unchanged for other products that move with prime, including home equity lines of credit (HELOCs), personal lines of credit and certain variable-rate loans.
• Looking ahead, the Bank of Canada's next move remains uncertain. If inflation stays elevated because of tariffs and higher energy costs, the Bank could keep rates at current levels for longer. If those pressures ease and economic conditions soften, there may be more room for a future rate cut.

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 Ontario mortgage rates increase if inflation continues to rise?

That's the most likely scenario as of late 2026. Variable mortgage rates increased after the Bank of Canada raised its overnight lending rate on October 28, which was partially a pre-emptive strike against rising inflation. 

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. 

The Bank expects inflation to hit 3.5% by the end of 2026. (Inflation was 3.1% in September.) If inflation meets or exceeds this estimate, another upward adjustment to the overnight rate — and variable rates — could land as early as December.

Fixed mortgage rates are influenced by government bond yields, which remain elevated due to the war in Iran's impact on global oil prices and overall inflation. Neither yields nor fixed rates are likely to decline until the situation in the Middle East nears a peaceful resolution.

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 (MLTT) in addition to Ontario's provincial land transfer tax. Toronto's land transfer tax applies to properties located within the city's boundaries: Steeles Avenue to the north, Etobicoke to the west, Scarborough to the east, and Lake Ontario to the south.

As of April 1, 2026, higher MLTT rates apply to eligible residential properties valued above $3 million.

* Higher luxury MLTT rates apply to eligible residential properties containing one or two single-family residences with a purchase price exceeding $3 million.

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