Find the best mortgage rate in Toronto

Toronto is Canada’s most populous city, which has made it one of the hottest real estate markets in the country. Buying a home in Toronto is also made more complex by the additional municipal regulations in place in the city.

These extra rules and fees are part and parcel of buying a home in Toronto. However, you can make life easier on yourself by getting a great deal on your next mortgage. Here's what you need to know to get the right mortgage for you. 

Toronto at a glance

• Population: 2.79 million - the largest city in Canada and the fourth largest city in North America
• Average Home Price: $1,101,691 (July 2025 report)
• Average Household Income: $65,829
• Percentage of Homeowners: 53%

Fun Facts About Toronto 

• Toronto is ranked as the safest major city in North America and the 6th safest city in the world.
• Toronto is home to the Royal Ontario Museum, which is Canada’s largest and most visited museum, as well as the Art Gallery of Ontario, which is Canada’s largest and most visited art gallery.
  

July 2025 Toronto market update

The Greater Toronto Area housing market showed tentative signs of recovery in June 2025, with sales holding steady month-over-month despite a slight year-over-year decline. The Toronto Regional Real Estate Board (TRREB) reported 6,243 transactions in June, 2.4% below last year, but largely unchanged from May. 

A total of 19,839 homes were newly listed in June, down from the previous month but 7.7% higher than last year. Active listings reached 31,603, 30.8% above 2024 levels, contributing to balanced market conditions. TRREB President Elechia Barry-Sproule noted that increased listings and lower mortgage rates have opened up opportunities for buyers to negotiate and make homeownership more accessible. 

Home prices continued to soften. The average home price declined by 5.4% year-over-year to $1,101,691, while the benchmark price fell by 5.5%. On a monthly basis, prices edged lower by 1.7%.

Jason Mercer, TRREB’s Chief Information Officer, noted that a revival in consumer confidence will likely depend on two key factors: improved trade relations and additional interest rate cuts. While economists expect the Bank of Canada to lower rates two more times in 2025, stubborn core inflation, still above 3%, could delay those cuts.

Also read: GTA homes sales improved slightly from May to June: TRREB

Comparing the best mortgage rates in Toronto

The comparison tables above list the best rates in Toronto, up to the minute. Comparing rates between multiple providers and mortgage brokers is the best thing you can do to get the lowest rate possible.

Of course, your personal rate may be different from the rates listed above. The rate you're eligible for can change based on things like your down payment, the price of the house, your credit score, which lender you choose as well as what the property is being used for.

Luckily, you can get personalized quotes for mortgage rates without filling in a full mortgage application. Use the tools at the top of this page and we’ll provide you with personalized mortgage quotes from Toronto lenders in under two minutes.

Toronto closing costs

When applying for a new mortgage in Toronto, it’s important to be aware of the closing costs associated with all property purchases. Most of these costs will need to be paid up front, so you’ll need to save the cash to pay for them (in addition to your down payment).

• Ontario Land Transfer Tax: Provincial land transfer taxes are collected by the Ontario government, and are between 0.5% - 2.0% of the purchase price.
• Toronto Land Transfer Tax: Unlike most cities, the City of Toronto charges its own land transfer tax on top of the provincial tax. This adds an additional 0.5 - 2.0%, depending on the purchase price.
• Mortgage Default Insurance and PST: If your mortgage is an insured mortgage, you'll need to pay for mortgage default insurance - this will normally be included as part of your mortgage. However, provincial sales tax (PST) on your premiums must be paid upfront. Ontario currently charges 8% PST on mortgage default insurance premiums.

These are just some of the closing costs you’ll have to pay in Toronto. Learn more on our closing costs education centre page.

Vacant Home Tax (VHT)

As of January 1, 2023, the City of Toronto’s Vacant Home Tax (VHT) regulation became payable. The VHT is a tax that applies to all residential properties that are vacant for at least six months during a calendar year. All Toronto homeowners must now self-declare their home’s occupancy status on an annual basis, whether or not they reside in that home.

The VHT is 1% of your home’s Current Value Assessment, which is provided by the Municipal Property Assessment Corporation (MPAC). For example, if your property is valued at $1,000,000, your VHT bill would come to $10,000: (1% x $1,000,000).

The Vacant Home Tax strictly applies to homes that are unoccupied. The VHT does not apply if your property is your principal residence, if it is occupied by a tenant with a minimum 30-day lease or if you have approved another individual, such as a family member, to occupy it. 

You can find more detailed information on Toronto’s Vacant Home Tax and who is impacted by it on the Ratehub Blog. 

Toronto first-time home buyer rebates

In an effort to make it easier for first-time home buyers to buy property in Toronto, there are first-time home buyer rebates of land transfer taxes at both the provincial and municipal levels.

• The Ontario government will rebate up to $4,000 of provincial land transfer tax for first-time home buyers.
• The City of Toronto will rebate up to $4,475 of the Toronto land transfer tax for first-time home buyers.

You can learn more about land transfer tax rebates here. If you’ve never bought a home before, you should also check out the other first-time home buyers' programs in Canada.

Sources:

1. Toronto.ca
2. CREA
3. Statistics Canada
4. Fun World Facts