Find the best mortgage rate in Ontario

Q: What are the current mortgage rates in Ontario in 2024?

As of October 5, 2024, the best high-ratio, 5-year fixed mortgage rate in Ontario is 4.14%. The best high-ratio, 5-year variable mortgage rate in Ontario is 5.3%. To compare the most up-to-date mortgage rates in Ontario, use our rate tables above. They are updated several times daily, whenever there are any mortgage rate changes across the different providers.

Q: What bank currently has the best mortgage rate in Ontario?

The Big 5 Banks that currently advertise the lowest fixed mortgage rates in Ontario are CIBC and RBC with 4.64%. The Big 5 Bank that currently advertises the lowest variable mortgage rate in Ontario is TD with 5.59%.

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

As of September 5, 2024, the average of the Big 5 Banks’ best, high-ratio, 5-year fixed mortgage rates in Ontario is 4.74%.

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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.

Transaction type

Rate type

Purchase price

Down payment $

Rate term

Amortization

Occupancy

Payment frequency

Rate	Provider	Payment
	Canadian Lender	^$2,109
	Meridian Credit Union	^$2,141
	Desjardins	^$2,141
	CIBC	^$2,152
	CMLS Financial	^$2,152
	Canwise A Ratehub Company	^$2,152
	MCAP	^$2,163
	Big 6 Bank	^$2,174
	Bank of Montreal	^$2,176
	First National	^$2,185
	TD Bank	^$2,185
	Alterna Savings	^$2,229
	Scotiabank	^$2,251
	Equitable Bank	^$2,319
	ICICI Bank Canada	^$2,526
	motusbank	^$2,693
	Simplii Financial ™	^$2,098
	RBC Royal Bank	^$2,174
	Tangerine	^$2,263
	National Bank of Canada	^$2,621

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Ontario mortgage rates: FAQ

Will mortgage rates continue to go down in 2024?

Could we finally see some even lower mortgage rates in 2024? The cost of borrowing in Canada soared throughout 2022, with fixed mortgage rates more than doubling and variable mortgage rates skyrocketing by over 500 basis points from their pandemic-era lows. 2023 saw borrowing become even more expensive, with three rate hikes totalling 75 basis points from the Bank of Canada, for a cumulative 10 rate hikes in the past two years. After enduring all of that, it’s no surprise that Canadians are wondering whether 2024 could bring more long-awaited relief.

In welcome news for borrowers, the Bank of Canada, which uses its trend-setting overnight lending rate to manage monetary policy and control inflation, has pivoted from a rate hold to a rate cut stance. In its sixth announcement of the year on September 4, 2024, the Bank of Canada implemented a -0.25% rate cut, taking the target for the overnight rate from 4.5% to 4.25%. This marked the third time in a row that the central bank cut the policy rate, after not doing so in over four years. The Bank cited steadily declining inflation in Canada and across the world as the main driver of its decision. So long as data continues to trend in the right direction, most expert observers are anticipating that the Bank will continue to cut rates through the end of 2024 and into 2025. Should that come to pass, the prime rate in Canada will lower in response, and with it, variable mortgage rates.

Although fixed mortgage rates aren’t directly influenced by the Bank of Canada’s rate decisions, they are tied to the bond market, which is highly responsive to investor sentiment. Whenever the Bank of Canada hikes rates, it triggers bond sell-offs by investors, as rate hikes devalue their existing bonds. Sell-offs, in turn, cause bond yields to climb. As yields are the funding floor that lenders use when pricing their fixed-rate mortgage offerings, whenever bond yields go up, so do fixed mortgage rates. After attaining a 16-year high of 4.42% back in October, bond yields gradually slid back down to the low 3% range in the end of 2023 and the start of 2024. Since then, they have been on a bit of a rollercoaster ride, spurred by tense investors who are quick to react to various economic reports coming out of Canada, the US and elsewhere. Bond yields climbed up to about 3.8% in January and into February, before tumbling back down to 3.3% in response to January’s lower-than-expected CPI reading of 2.9% along with other key economic indicators. More recently, in anticipation of a rate cut, bond yields began to tumble in the days leading up to the September 4 announcement, inciting some lenders to begin lowering their fixed mortgage rates. Once the rate cut became official, bond yields fell further, and now sit in the 2.8% range, prompting more lenders to discount their fixed mortgage rates. As such, fixed mortgage rates will likely trend downwards for the near future.

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

To counteract runaway inflation, the Bank of Canada hikes its target for the overnight rate. In doing so, the Bank makes it more expensive to borrow money and incentivizes saving. When people spend less and save more, demand decreases, causing inflation to decrease as well. In its sixth announcement of 2024 on September 4, the Bank of Canada lowered the target for the overnight rate by -0.25%, just as it did at its June and July announcements. Prior to this, there had been no rate cuts since March 2020. The Bank noted that inflation was declining in Canada as well as in the United States and beyond, and pointed to this as the main driver of its decision to cut the policy rate. Should inflation continue trending downward, we can expect that the Bank of Canada will continue to cut interest rates, with many market experts predicting that this will keep happening through 2024 and into 2025. Each time a rate cut is implemented, variable mortgage rates decrease almost immediately in response, just as they did after the June and July rate cuts.

Fixed mortgage rates are tied to the bond market rather than to the Bank of Canada. When bond yields rise, the cost of lending money increases, which compels lenders to raise their fixed mortgage rates. However, the same runaway inflation that forced the Bank of Canada to effect 10 rate hikes over 2022 and 2023 also sent bond yields climbing. They reached a 16-year high of 4.42% back in October, but then cooled to the low 3% range in late December and early January as inflation abated. Lenders lowered their fixed mortgage rates in response. Since then, they have swung up and down at a dizzying rate, with jumpy investors quick to react to various key economic reports from Canada and abroad. Bond yields rose to the 3.8% range in January before coming back down to the 3.3% range in February in light of declining inflation and other factors. Since then, a robust jobs report and elevated CPI from the US has sent them up to the 3.7% range. Most recently, in anticipation of a rate cut from the central bank, bond yields began tumbling and several lenders lowered their fixed mortgage rates. In the wake of the September 4 rate cut, bond yields fell further, settling into the 2.8% range. More lenders have now discounted their fixed mortgage rates, with others sure to follow.

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?

The prime rate in Canada today, October 5, 2024, is currently 6.45%. The prime rate is the interest rate used by Canada’s major banks and financial institutions to set interest rates for variable loans, including variable-rate mortgages. In fact, variable-rate mortgages are actually expressed as a discount from the prime rate. Hence, a variable rate today of 5.25% is actually stated on a mortgage contract as Prime -120% (because prime is currently at 6.45%).

The prime rate is directly affected by the Bank of Canada’s (BoC’s) target for the overnight rate. The Bank of Canada itself does NOT set the prime rate. Prime rates are set by the different lending institutions. However, when the BoC changes its target for the overnight rate, lenders normally follow suit and adjust their prime rates accordingly.

Thus, when the Bank of Canada announces a rate cut of -0.25%, most lenders will also decrease their prime rate by -0.25%. Consequently, variable-rate mortgage holders then see their mortgage rates go down by the same -0.25%.

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

WATCH: September 4, 2024 Bank of Canada announcement

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4.14%

Best fixed rate in Canada

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Getting the best mortgage rates in Ontario

Jamie David, Sr. Director of Marketing and Mortgages

September 24, 2024

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 +

Rate	Term	Type	Provider
4.14%	5 years	Fixed	Canadian Lender
4.34%	4 years	Fixed	Desjardins
4.39%	3 years	Fixed	Meridian Credit Union
4.49%	7 years	Fixed	Desjardins
5.14%	6 years	Fixed	Bank of Montreal

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%

Ontario housing market: September 2024 update

On September 16, 2024, the Canadian Real Estate Association released the data on the national housing market for August, covering sales activity, average price trends, and overall supply and inventory.

According to the CREA, home sales experienced a modest year-over-year decline, with 13,484 properties sold—a drop of -3.7%. While buyer activity slowed, sellers appeared slightly more eager to enter the market. New listings surged, with 29,837 homes hitting the market, an increase of 0.7% compared to the same period last year. The overall inventory now stands at 4.3 months. This growing supply has eased pressure on prices, with Ontario's average home price falling by -1.2% to $817,915.

Market conditions are notably softer compared to last August, with the sales-to-new-listings ratio dropping to 45.2%, down -2.1% from last year. This slight decline signals a continued shift toward more balanced market conditions. CREA considers a ratio between 40 - 60% to represent a balanced housing market, with above and below that threshold reflecting sellers’ and buyers’ markets, respectively.

September 4, 2024: Bank of Canada announcement highlights

On September 4, 2024, the Bank of Canada lowered the target for the overnight rate by -0.25%, taking it from 4.5% to 4.25%. This marks the third consecutive time that the Bank of Canada has cut its benchmark rate since March 2020, having carried out identical rate cuts in June and July of this year.

In its accompanying commentary, the Bank cited falling inflation as the main driver of its decision to cut the overnight lending rate, noting that July’s CPI of 2.5% was in line with expectations and that inflation in the United States and elsewhere was declining as well.
Canadians with variable-rate mortgages and home equity lines of credit (HELOC) will undoubtedly be thrilled to see their rates and payments fall for the third month in a row.
While fixed mortgage rates are tied to the bond market rather than to the Bank of Canada’s policy rate, some lenders had already begun lowering their fixed rates in anticipation of a rate cut in the days leading up to the Bank’s announcement. With the rate cut now implemented, more lenders are sure to reduce their fixed rates.
It remains to be seen how much of an effect this announcement will have on the housing market, which has been rather sluggish in 2024. This third rate reduction brings us to a cumulative 75-basis-point reduction, which could well entice more buyers to come in off the sidelines.

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:

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