Best Toronto mortgage rates
The rate table shows 5-year fixed mortgage rates in Toronto. To compare other rate types and terms, click on the filters icon beside the down payment percentage.
What are the current mortgage rates in Toronto?
As of today, February 25, 2024, the best high-ratio, 5-year fixed Toronto mortgage rate is 4.84%, while the best high-ratio, 5-year variable mortgage rate available is 5.95%.
To see the most up-to-date Toronto mortgage rates, be sure to look at our rate table above. We update all of our rate tables multiple times per day to reflect any mortgage rate changes across the different providers.
What is the lowest variable mortgage rate in Toronto?
As of February 25, 2024, the lowest high-ratio, 5-year variable Toronto mortgage rate is 5.95%, while the lowest 3-year variable mortgage rate available is 6.3%. The lowest 3-year fixed mortgage rate, meanwhile, is 4.99%.
For the most current rate information, consult our rate table above. It’s updated several times daily, whenever there are any rate updates across the different providers.
Will mortgage rates go down in 2024?
After seeing the way the cost of borrowing has soared over 2022 and 2023, it comes as no surprise that borrowers and would-be homeowners in Toronto and across Canada are anxious to know whether affordability will finally start to improve in 2024.
It seems that we can finally start to feel cautiously optimistic in that department, as the Bank of Canada’s historically steep rate-hiking cycle has almost certainly come to an end. In its first announcement of the year on January 24, the Bank held the overnight lending rate for a fourth consecutive time, pointing to a number of key economic indicators, including weakening GDP, falling consumer spending and reduced business investment as among the reasons for its decision. The Bank did note, however, that December’s inflation reading of 3.4% was well above its 2% target, and indicated that rates would need to remain higher for longer in order for their full intended effects to take hold.
That said, however, as long as the aforementioned economic indicators trend in the right direction, market observers expect the central bank to begin cutting its Overnight Lending Rate starting in the end of 2024 and into 2025 It’s anticipated that these cuts could take place over five or six announcements and total some 200 basis points. Should this come to pass, the prime rate in Canada will come down from its current level of 7.2%, taking variable mortgage rates down with it.
Although fixed mortgage rates are directly tied to the bond market rather than to the Bank of Canada’s rate decisions, the bond market itself is highly responsive to investor sentiment. When the Bank implements a rate hike, this devalues investors’ existing bonds, which leads to sell-offs. This in turn drives up bond yields, which are the funding floor used by lenders to price their fixed-rate mortgage products.
After reaching a 16-year peak of 4.42% in October 2023 that sent fixed mortgage rates climbing, the prospect of the Bank of Canada finally starting to cut rates led to bond yields easing back down to the low 3% range in the last weeks of 2023 and the first weeks of 2024, allowing lenders to lower their fixed mortgage rates. After some key unexpectedly robust economic reports sent bond yields climbing up to almost 4%, the latest CPI report showed that inflation has declined to 2.9%. As a result, bond yields have fallen to the 3.5% range, where they sit today, exerting downward pressure on fixed mortgage rates. In the longer term, provided higher interest rates result in falling inflation, bond yields will likely continue to come down as well, bringing fixed mortgage rates lower with them.
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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Jamie David, Sr. Director of Marketing and Mortgages
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.
Best mortgage rates in Toronto +
|Big 6 Bank
|Big 6 Bank
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|Bank of Montreal
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|RBC Royal Bank
Toronto at a glance
- Population: 2.79 million - the largest city in Canada and the fourth largest city in North America
- Average Home Price: $1,026,703 in January of 2024
- 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.
February 2024 Toronto market update
On February 6, 2024, the Toronto Regional Real Estate Board (TRREB) published the latest Greater Toronto Area (GTA) housing market figures for the month of January 2024. The most recent data reveals that sales rose substantially on both an annual and monthly basis, with the 4,223 residential properties sold in the Toronto area in January 2024 marking a year-over-year increase of 37% and up by over 22% from the previous month.
In a reversal of a trend observed in December, the number of newly listed properties rose sharply, from 3,886 in December to 8,312 in January, which represented an annual increase of 6.1%. This new supply helped to offset the increase in demand, if barely. The average home price in Toronto came in at $1,026,703, down by -1% on an annual basis, and slightly lower from the month before.
Prices may be poised to climb, however, and TRREB struck an optimistic tone in its latest report. “Once the Bank of Canada actually starts cutting its policy rate, likely in the second half of 2024, expect home sales to pick up even further. There will be more competition between buyers in 2024 as demand picks up and the supply of listings remains constrained. The end result will be upward pressure on selling prices over the next two years,” said TRREB Chief Market Analyst Jason Mercer.
Toronto housing market forecast
According to TRREB’s 2023 Market Outlook and 2022 Year in Review Report, Greater Toronto Area home sales will continue to slow throughout 2023, though buyer demand is expected to pick back up in the second half of the year, which will put more pressure on market balance and may drive home prices higher.
Polling conducted by TRREB suggests prospective home buyer intentions are increasing, especially if fixed mortgage rates continue to trend lower, with 28% of respondents indicating they will consider purchasing a home in 2023.
The regional real estate board forecasts a total of 70,000 home sales in 2023, which will be -6.7% lower than 2022 transactions, and would prove to be the softest year for demand, compared to the last six years of data.
The average home price is forecast to be $1,140,000, marking a year-over-year decline of -4.1%. However, it should be noted that this price remains quite elevated from a longer-term perspective and well above pre-pandemic price levels, coming in 39% higher than the 2019 average price of $819,153.
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.
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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