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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.
As of:
Toronto mortgage rates: FAQ
What are the current mortgage rates in Toronto?
As of today, December 2, 2024, the best high-ratio, 5-year fixed Toronto mortgage rate is 4.14%, while the best high-ratio, 5-year variable mortgage rate available is 4.85%.
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 December 2, 2024, the lowest high-ratio, 5-year variable Toronto mortgage rate is 4.85%, while the lowest 3-year variable mortgage rate available is 5.05%. The lowest 3-year fixed mortgage rate, meanwhile, is 4.09%.
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 continue to 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 continue to improve in 2024.
It seems that we can finally feel optimistic in that department, as the Bank of Canada’s historically steep rate-hiking cycle has not only come to an end, but we are now in a rate cutting environment. In its seventh announcement of 2024 on October 23, 2024, the Bank of Canada cut the overnight lending rate by -0.50% (the first half-point cut since March 2020), taking it from 4.25% to 3.75%. The Bank cited declining inflation as the main reason for its decision, with September's Canadian CPI having come in at 1.6% (well below the target of 2%).
As long as inflation keeps trending in the right direction, market observers expect the central bank to cut its Overnight Lending Rate through 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 (including the 125 basis points from June, July, September, and October’s rate cuts). Should this come to pass, the prime rate in Canada will come down from its current level of 5.95%, 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.
Most recently, as anticipation of a rate cut from the Bank of Canada grew, bond yields tumbled to 2.9% in the days leading up to the October 23 announcement and a few lenders reduced their fixed mortgage rates. Now that the rate cut is official, bond yields may fall further and more lenders will lower their fixed mortgage rates. In the long term, provided inflation continues to fall, we can expect that bond yields will be on an overall downward trajectory, taking fixed mortgage rates down with them.
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Getting the best mortgage rates in Toronto
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 +
Rates updated:
Term | Rate | Type | Provider |
---|---|---|---|
3 years | 4.09% | Fixed | Big 6 Bank |
5 years | 4.14% | Fixed | Big 6 Bank |
4 years | 4.34% | Fixed | Desjardins |
7 years | 4.49% | Fixed | Desjardins |
6 years | 5.14% | Fixed | Bank of Montreal |
10 years | 5.24% | Fixed | Desjardins |
2 years | 5.29% | Fixed | Big 6 Bank |
1 year | 5.74% | Fixed | Alterna Savings |
25 years | 7.49% | Fixed | CIBC |
Toronto at a glance
- Population: 2.79 million - the largest city in Canada and the fourth largest city in North America
- Average Home Price: $1,162,167 in June 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.
November 2024 Toronto market update
The Toronto Regional Real Estate Board (TRREB) reports a surge in housing market activity across the Greater Toronto Area (GTA) for October, driven by favorable borrowing conditions. Home sales totaled 6,658—a 44.4% increase year-over-year and a 33.2% rise from September. This uptick follows the Bank of Canada’s rate cuts, which have brought the benchmark rate down to 3.75%, creating a more accessible market for buyers.
New listings reached 15,328 in October, up 4.3% from last year but down -15.2% from September. Despite the decrease in new listings, overall inventory remains ample, at 25.3% higher than last year, helping to stabilize price growth. The average home price climbed to $1,135,215, marking a 1.1% increase year-over-year and a 2.5% rise from September.
TRREB Chief Market Analyst Jason Mercer highlights that while the current balance of supply and demand has kept price gains in check, conditions may tighten further. “With inventory gradually being absorbed and a potential slowdown in new listings, we could see upward pressure on prices heading into spring 2025,” Mercer notes.
Read more: Toronto real estate roars back to life in October as sales rise 44%
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:
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
Want to learn more? Check out our comprehensive education centre
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