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Best Mortgage Rates in Toronto

Compare current mortgage rates in Toronto and find the best rate in seconds.

We compare the most competitive brokers, lenders and banks in Toronto to bring you today's best mortgages rates, at no cost to you. Our comparison charts list current Toronto rates, and are updated every few minutes. To learn more about a particular rate, simply click "Inquire" - an agent will contact you within 1 business day. Don't worry, there are no obligations when you choose to inquire. Advertising Disclosure

Rates updated: January 24, 2021 at 12:20 AM

Best mortgage rates in Toronto (view all) +

Getting the best mortgage rates in Toronto

Content last updated: September 9, 2020

Toronto is Canada’s most populated city, which has made it one of the hottest real estate markets in the country. Buying a home in Toronto is then made more complex by the additional 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 a better deal.

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 upfront, 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.

CMHC 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 CMHC 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.

Toronto first-time homebuyer rebates

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

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.

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Toronto mortgage rates: Frequently Asked Questions

Here are a few answers to the most common questions we receive.

How much can I save by comparing Toronto mortgage rates?

Getting a mortgage in Toronto is probably the biggest financial commitment you’ll make in your life, so it’s important to get a great deal. Comparing mortgage rates from different providers is one of the best things you can do to get a lower rate.

So how much can you save with a lower rate? On a $500,000 mortgage with a 25-year amortization, paying 2.50% instead of 3.0% could save you around $126 a month. Overall, you’d pay $11,767 less in interest over a 5-year term. You can use our mortgage payment calculator to input your own figures, and work out how much you could save by comparing mortgage rates.

Why compare Toronto mortgage rates with Ratehub.ca?

Ratehub.ca makes it easy to compare Toronto mortgage rates, but pulling rates from the big banks, Toronto mortgage brokers, and smaller lenders like credit unions, all in one place. By seeing what’s available in Toronto, you’ll be able to make sure you get the best possible deal. We do this at no cost to you.

Are Toronto mortgage rates higher than other cities?

Toronto mortgage rates can sometimes differ from other Canadian cities, but not just because of the city itself. Mortgage rates are determined by lots of factors, including competition among lenders to offer the lowest rates. Some cities have more competition than others, which generally leads to slightly lower rates. However, the differences are generally small.

What’s the difference between variable and fixed rates?

Variable rates can change over the course of your mortgage term (which can range from 1 to 10 years). On the other hand, fixed rates remain constant throughout your mortgage term, even if the prime rate changes.

The advantage of variable rates is that if rates fall across the market, then your rate will also drop. The downsides are that rates can go up. This would also cause your rate to rise, which means paying more on your regular mortgage payment.

The advantage of fixed rates is that your regular mortgage payments will stay the same for your entire term. However, if prime rates were to drop, you’d be missing out on the savings that a lower rate would offer.

Learn more about fixed and variable rates here.

Is it worth getting a mortgage pre-approval?

When buying a new home in Toronto it’s generally worth getting a pre-approval. A pre-approval is an in-principal commitment from a lender to offer you a particular rate for a given mortgage. This gives you confidence that the homes you’re looking at are within your budget, and lets you move faster when you’re ready to make an offer.

You can start the pre-approval process by going directly to a lender, or you can apply with the help of a mortgage broker. Remember that you’re not obligated to get a mortgage with a particular lender, even if you’ve been pre-approved by them. Also remember that your pre-approval is not a final guarantee of a particular rate. That’s only confirmed when you make your final application.

Which bank has the best mortgage rates in Toronto?

No one bank has the best rates in Toronto, or offers the best mortgage in Toronto. Mortgage rates change regularly, and different lenders will often run promotions that make them temporarily more competitive. The best way to get a lower mortgage rate is to compare current rates from multiple mortgage providers and brokers.

Remember as well that the best mortgage for you is not necessarily the one with the lowest rate. Your mortgage will be a big part of your life for years to come, and getting one with the right features and terms is sometimes more important than the rate. Getting advice from a Toronto mortgage broker is a good way to better understand this, if you’re worried.

Should I use a mortgage broker in Toronto?

A mortgage broker can connect you with mortgage products from a range of lenders, both big and small. As well as being connected with multiple lenders, brokers often have access to rates and deals that aren’t available to the public. Generally, getting a mortgage through a broker will help you secure a lower mortgage rate than going directly to your current bank. Mortgage brokers are free for you to use, so there’s no risk in approaching one for a chat.