Find the best mortgage rate in Ontario

Getting the best rate should be a top priority when you get a mortgage, especially in the high-priced Ontario real estate market. A difference of just 0.3% can save you between $60-$100 on average in your monthly mortgage payment. That’s a savings of up to $3,600-6,000 over a 5-year term. Comparing mortgage rates between different providers is the best way to get the lowest rate you can qualify for.

We know mortgages can be overwhelming. With so many different types of mortgages, terms and conditions, and providers to consider, just getting started can be confusing. At Ratehub, we compare the lowest rates from the Big 6 Banks, smaller banks, credit unions, and top mortgage brokers in Ontario. We want to make it easy for Canadians to compare, apply, and connect with mortgage providers so that you're empowered to get better mortgage rates.

With a fixed-rate mortgage, your rate is set for the entire term of your mortgage. This means that your monthly payment will be steady throughout your mortgage term, which makes budgeting easier. 

With a variable-rate mortgage, your rate and monthly payments can fluctuate throughout your term. Variable rates are tied to the prime rate of your lender - changes in the prime rate will mean a change to your rate as well. 

Variable rates are typically lower than fixed rates. However, fixed rates are more stable. In Ontario, fixed rates are the most popular option, used in over 70% of Ontario mortgages (Source: Statistics Canada).

Neither fixed nor variable rates are better than the other, they each suit different people in different situations. Fixed rates are incredibly popular due to the stability they offer, but variable rates may offer more savings throughout your term, depending on market conditions. 

When deciding, consider your appetite for risk, your financial situation, the market conditions, and the length of your mortgage term. 

If you are worried about rates going up or your household budget cannot accommodate much of an increase in your monthly mortgage payments, then fixed rates may be the way for you to go.  On the other hand, if you are certain that rates are going to go down during your mortgage term and your budget can absorb increases in your monthly payment, then you may find variable rates more appealing. 

Still undecided?  Read our guide on fixed vs. variable mortgage rates.

Prepayment options let you increase the size of your monthly payments, or make additional payments towards your mortgage principal (thereby decreasing your amortization period). Depending on the type of mortgage you get, your lender may allow you to increase your monthly payments by a set percentage, make a lump sum payment towards your principal, or both. The percentage by which you can make a lump sum repayment is based on your mortgage’s initial principal value.

With an open mortgage, you can pay down as much of your principal as you want in a given year without restriction. However, open mortgage rates are higher. So you are essentially paying more for flexibility. 

With a closed mortgage, prepayments are restricted and interest penalties are enforced on any overpayment, but your rate will be lower than an open mortgage rate.

In Ontario, closed mortgages are the more popular option as most people don’t expect to pay more than their monthly mortgage payment. However, an open mortgage could be a good choice if you’re planning to move soon or expect to receive a lump sum of money (that you can use towards your mortgage) during your mortgage term.

A rate hold allows you to hold a mortgage rate for a certain period of time, typically between 60-120 days, depending on the lender and offer. For variable rates, you won’t lock in the rate itself, but its relation to prime. It’s important to note that though a rate hold guarantees you a mortgage rate for a specific timeframe, it doesn’t guarantee that your mortgage application will be approved.

If Ontario mortgage rates are currently low, you may want to find a mortgage with a rate hold until your renewal or closing date.

A mortgage is probably one of the largest loans you’ll ever take out, so it makes sense to choose the best mortgage product that matches your circumstances and needs.  Mortgage brokers have access to a number of different lenders like the Big Banks, small banks, credit unions, and trust companies. They also work with some special financial institutions and digital banks that have less overhead and therefore offer lower rates. Many brokers also have access to special rates and can get volume discounts, that they then pass on to you. This is how mortgage brokers are often able to offer Big Bank mortgages at a lower rate than from the Big Bank itself. Moreover, with a mortgage broker, you can apply once and get quotes from multiple lenders (instead of having to apply to each of those lenders individually).

Beyond just the lower rates, brokers have a thorough knowledge of the mortgage market and can provide you with information on different mortgage lenders and solutions. They can help you understand how much of a mortgage you can afford, advise you on which mortgage product best fits your situation, guide you through the entire mortgage process from quote to close, and can even assist you in getting a HELOC.

Most importantly, most mortgage brokers in Ontario do not charge a fee for their services as they are compensated directly by the mortgage lender. So it doesn’t hurt to inquire with a mortgage broker and see what they can offer you.