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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

$2,263

Big 6 Bank

$2,274

Alterna Savings

$2,296

CMLS Financial

$2,296

Desjardins

$2,308

Canwise

A Ratehub Company

$2,308

Ontario mortgage rates: FAQ

Will mortgage rates go down in 2024?


Will mortgage rates go down if inflation decreases?


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: January 24, 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%

January 24, 2024: Bank of Canada announcement highlights

On January 24, 2024, the Bank of Canada held the target for the overnight rate steady at 5.00%.

  • In its accompanying commentary, the Bank cited multiple reasons underlying its decision to maintain the overnight lending rate, namely weak GDP, softening consumer spending and a reduction in business investment. It noted, however, that despite the progress made in the fight against inflation, December’s CPI of 3.4% remained well above its inflation target of 2%, and declared that higher rates were therefore needed for longer.
  • Although Canadians with variable-rate mortgages and home equity lines of credit (HELOC) will be pleased to see their rates remain stable, they are likely going to be disappointed not to find any language about upcoming rate cuts in the Bank’s commentary.
  • While fixed mortgage rates are tied to the bond market rather than the Bank of Canada’s policy rate, in the wake of spiking yields caused by December’s higher-than-expected CPI report, many lenders had been holding their fixed rates in anticipation of new information from the Bank. However, given the absence of new information in the Bank’s commentary, lenders may now consider raising fixed mortgage rates.
  • This announcement is unlikely to have much effect on the housing market, as it is basically a continuation of the “wait and see” approach adopted by the Bank in the last quarter of 2023. Should the Bank hint at rate cuts, we can expect to see an almost immediate rise in home prices.

Ontario housing market: February 2024 update

On February 14, 2024, the Canadian Real Estate Association (CREA) released the latest figures on the national housing market, including sales activity, average price performance and overall supply and inventory. 

The most recent numbers from CREA reveal that the Ontario housing market experienced a noticeable boost in activity after an anemic second half of 2023. Some 9,509 homes were sold across Ontario in January, marking a major annual increase of 21.4%, and substantially above than the previous month’s total of 7,723. Some 19,363 residential properties were newly listed in January, marking an annual increase of 7.5%, and more than double the previous month’s figure of 8,960.

The flood of new listings helped to balance the increase in demand; in fact, the average home price slipped slightly on a monthly basis, down to $821,624 from December’s figure of $853,915 (but still up by 2.9% annually). 

Buying conditions remain firmly balanced in Ontario, with a sales-to-new-listings ratio (SNLR) of 50.2%. To put this in context, according to CREA, a SNLR within 40 - 60% indicates a balanced market, with above and below that threshold representing sellers’ and buyers’ markets, respectively.

 

Ontario home sales and price forecast

Following the steep declines in buyer demand in 2022, home sales in Ontario are set to perform slightly worse this year before improving significantly the next, according to an updated forecast from the Canadian Real Estate Association. According to CREA, a total of 182,866 properties sold last year, marking a -32.3% decline from 2021 numbers. So far, 2023 sales are on track to hit 175,646, which will come in -3.9% below last year’s already-low number.

This largely reflects the impact of rising interest rates this year and last, as the Bank of Canada hiked its trend-setting cost of borrowing benchmark a historic 10 times between March 2022 and July 2023, considerably increasing mortgage rates. However, in line with expectations that the central bank will ease off rate hikes in 2024, CREA is calling for sales to rebound by 13.3%, to 199,082 transactions.

The average Ontario home price, meanwhile, will end 2023 on a dip, coming in -3% below 2021 levels at $903,719. CREA forecasts this to flatten further into 2024 at an average of $910,205 (0.7%).


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.

 

Changes on the horizon

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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