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. 

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: May 2025 update

On May 25, 2025, the Canadian Real Estate Association (CREA) released the April data for Ontario’s housing market activity. The figures indicate a drop in buyer demand in the province, with 14,244 homes sold — a 20.2% decrease year over year. The province’s average home price also declined by 4.8% year over year, landing at $859,645.

New listings remained relatively stable, with 40,189 homes brought to market — nearly unchanged from the same time last year. However, the months of inventory rose to 4.7 months, up from 2.9 months a year earlier. This increase suggests that supply is beginning to outpace demand, giving buyers more options and more time to make decisions.

Ontario’s housing market entered the buyer’s territory in April, as the sales-to-new-listings ratio (SNLR) decreased by -9.0% to reach 35.4%. CREA considers a ratio between 45% and 65% to represent a balanced market, with anything above 65% signaling a seller’s market and anything below 45% indicating a buyer’s market. With more listings sitting on the market and home prices trending downward, buyers in Ontario are finding themselves in a stronger negotiating position.

Read more: April Canadian home sales flat as buyers stick to the sidelines

April 16, 2025: The Bank of Canada announcement highlights

On April 16, 2025, the Bank of Canada (BoC) announced it would maintain its overnight lending rate at 2.75%, marking a break in what would have been its eighth consecutive rate cut. The decision was driven by persistent inflationary pressures and ongoing uncertainty in global trade, particularly the impact of tariffs.

• The Bank opted to hold rates steady to balance economic growth with price stability, closely monitoring inflation. Although inflation eased to 2.3% in March, it remains above the BoC’s 2% target.
• As a result of this rate hold, the prime rate at most lenders will remain at 4.95%, meaning variable mortgage holders will see no change in their rates. The lowest available variable mortgage rate continues to be 3.95%.
• For fixed mortgage rates, which are influenced by government bond yields instead of the BoC’s rate decisions, the recent stability in bond yields around 2.6% has led to lower rates. The lowest available five-year insured fixed mortgage rate is now 3.79% (3.74% in Quebec).
• The rate hold ensures stability for savers with high-interest savings accounts (HISAs) and Guaranteed Investment Certificates (GICs), as there will be no change in their returns.
• Given the complexities of global trade tensions and inflation, the BoC's future policy rate decisions will depend on how these factors evolve in the coming months.

Will mortgage rates decrease if inflation continues to fall?

On April 15, 2025, Statistics Canada reported that the Consumer Price Index (CPI) rose by 2.3% year-over-year in March, down slightly from 2.6% in February.

Read: March CPI comes in surprisingly low at 2.3%

In response to the recently implemented U.S. tariffs and inflationary pressures, the central bank decided to implement a rate hold on April 16, 2025. Since June 2024, the BoC has lowered its Overnight Lending Rate from 5.00% to 2.75%. The BoC will continue monitoring inflation and trade developments closely before determining the pace and extent of additional cuts in 2025.

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.

Read more: Bank of Canada holds target interest rate at 2.75% in April 2025 announcement

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 2.8% 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