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:
Ontario mortgage rates: FAQ
Will mortgage rates rise in 2023?
As of December 7, 2023, the best fixed mortgage rate is 5.04% and the best variable mortgage rate is 5.95%.
Borrowers are likely wondering what’s in store for the final weeks of 2023 following last year’s volatility, which saw a 100% increase in the fixed cost of borrowing, and over 520% for variable rates.
This year has been a mixed bag for the mortgage market. While borrowers and would-be home buyers enjoyed a few months of relative stability in the first few months of 2023, the Bank of Canada’s decision to raise its target for the overnight rate by 0.25% in both its June and July announcements caused the cost of borrowing to rise once again. In its most recent announcement on December 7, the Bank held the target for the overnight rate at 5.00% for the third time in a row. In its accompanying commentary, the Bank cited weak Q3 GDP numbers, reduced consumer spending, and, in particular, October’s lower-than-expected CPI figure of 3.1% as the main drivers of its decision to maintain the overnight lending rate. As this was the last announcement of 2023, we can expect variable mortgage rates and HELOC rates to remain stable for the remainder of the year.
Fixed mortgage rates, on the other hand, are directly tied to bond yields rather than the Bank of Canada’s overnight lending rate. Bond yields have been highly reactive throughout the year, rising and falling along with new economic reports such as GDP, inflation numbers and any hint of a rate hike by the Bank of Canada. However, in the wake of the Bank of Canada’s third consecutive rate hold, declining inflation and other economic indicators, bond yields have come down to 3.3%, their lowest point since May (from a high of 4.4% in mid-October). As a result, fixed mortgage rates have been decreasing since mid-November, and will likely do so further should bond yields remain where they are or trend downwards.
Will mortgage rates go down if inflation decreases?
On November 21, 2023, Statistics Canada reported that the Consumer Price Index ticked up by 3.1% in October, lower than expected and below September’s inflation reading of 3.8%. The declining reading is due in large part to falling gas prices, but even core inflation (i.e. inflation stripped of the most volatile costs like gas and food) is finally cooling. The October figure is a welcome return to falling inflation after higher-than-anticipated readings over the summer, and was a major factor in the Bank of Canada’s decision to hold the overnight lending rate for the third time in a row at its last announcement of the year on December 6.
The BoC has hiked rates a total of 10 times between March 2022 and July 2023, to bring the benchmark cost of borrowing to 5%.
Read: Bank of Canada holds its target interest rate at 5% in December announcement
Fixed mortgage rates, however, are not directly impacted by Prime or the Bank of Canada’s overnight lending rate. Instead, they are directly influenced by 5-year bond yields. As bond yields go up, the cost to lend money also increases. As a result, lenders raise their fixed mortgage rates. Bond yields are also directly impacted by inflation, becoming less valuable when this measure spikes. Following the Bank’s second consecutive rate hold on October 25, coupled with the US Fed’s November 1 rate hold, bond yields began to come down from their peak of 4.4%, allowing lenders to begin decreasing their fixed mortgage rates. Falling inflation and the Bank’s December 6 rate hold caused bond yields to come down to the 3.3% range (their lowest level since May), allowing for fixed mortgage rates to be discounted further.
What are the current mortgage rates in Ontario in 2023?
As of December 7, 2023, the best high-ratio, 5-year fixed mortgage rate in Ontario is 5.04%. The best high-ratio, 5-year variable mortgage rate in Ontario is 5.95%.
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.
What bank currently has the best mortgage rate in Ontario?
The Big 5 Bank that currently advertises the lowest fixed mortgage rates in Ontario is RBC with 5.69%.
The Big 5 Bank that currently advertises the lowest variable mortgage rate in Ontario is CIBC with 6.7%.
What is today’s prime rate and how does it affect mortgage rates in Ontario in 2023?
The prime rate in Canada today, December 7, 2023, is currently 7.2%. 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 6.00% is actually stated on a mortgage contract as Prime -120% (because prime is currently at 7.2%).
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 hike of 0.25%, most lenders will also increase their prime rate by 0.25%. Consequently, variable-rate mortgage holders then see their mortgage rates go up by the same 0.25%.
What is the average 5-year mortgage rate in Ontario?
As of December 7, 2023, the average of the Big 5 Banks' best, high-ratio, 5-year fixed mortgage rates in Ontario is 5.76%.
WATCH: December 6, 2023 Bank of Canada announcement
Compare current mortgage rates across the Big 5 Banks and top Canadian lenders. Take 2 minutes to answer a few questions and discover the lowest rates available to you.
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Getting the best mortgage rates in Ontario

Jamie David, Sr. Director of Marketing and Mortgages
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 +
Rates updated:
Rate | Term | Type | Provider |
---|---|---|---|
5.04% | 5 years | Fixed | Canadian Lender |
5.39% | 4 years | Fixed | Canadian Lender |
5.59% | 3 years | Fixed | Canwise |
5.84% | 7 years | Fixed | Big 6 Bank |
6.14% | 2 years | Fixed | Big 6 Bank |
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%
December 6, 2023: Bank of Canada announcement highlights
On December 6, 2023, the Bank of Canada held the target for the overnight rate steady at 5.00%.
- Canadians with a variable-rate mortgage or home equity lines of credit (HELOC) will be pleased to see rates remain stable, as will anyone looking to get or renew a mortgage this fall. They can now begin to think about the prospect of rate cuts on the horizon.
- Although fixed-rate mortgages are tied to the bond market rather than the Bank of Canada’s policy rate, this rate hold has caused bond yields to fall to 3.3%, their lowest level since May. As a result, we can expect that fixed mortgage rates will likely continue decreasing (as they have been since mid-November).
- In its accompanying commentary, the Bank cited multiple reasons underlying its decision to maintain the overnight rate, namely weak Q3 GDP figures, softening consumer spending and, most importantly, cooling inflation.
- While we are unlikely to see any immediate effects on the housing market due to the usual seasonal slowdown, anticipation of lower rates could inject renewed life into the housing market in 2024.
Ontario housing market: November 2023 update
On November 15, 2023, the Canadian Real Estate Association (CREA) released the most recent data on the national October housing market, including sales activity, average price performance and overall supply and inventory.
The latest numbers from CREA indicate that, in keeping with the trend noted last month, buyer activity has continued to abate, in large part due to the impact of “higher for longer” fixed and variable rates. Some 11,544 homes in Ontario changed hands in October, down on an annual basis by -7.6% and slightly below the previous month’s 11,876. In spite of the decline in sales activity, Ontario home prices still rose on an annual basis, although by only 2.7%. The average home price in Ontario came in at $855,990 in October 2023, up from $851,756 in September.
In welcome news for Ontario home buyers, supply continues to increase, with a total of 31,117 residential properties coming on the market in October, representing a year-over-year increase of a whopping 25.9% over the previous year. Unsurprisingly, the influx of supply has led to improved buying conditions. The sales-to-new-listings ratio (SNLR), which CREA uses to gauge competition within the market, eased by -6.2% on an annual basis and -1.4% on a monthly basis to 50.5%. To put this in context, according to CREA, a ratio 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