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: $1,162,167 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.
  
  

September 2024 Toronto market update

The latest data on the Greater Toronto Area housing market was released on September 5, 2024 by the Toronto Regional Real Estate Board (TRREB). The report, which summarizes August real estate trends, shows buyers continued to wait it out, despite recent rate cuts from the Bank of Canada. A total of 4,975 homes sold over the course of the month, marking a -5.2% decline from 2023, and -7.7% from July. A silver lining, however, shows that month-over-month drop eased up from the one recorded between June and July, which came in at -13.2%.

A plethora of new listings were brought to market, at 12,547 units, up 1.5%. However, that’s also considerably less than what’s been listed in previous months; July new listings had marked a 18.5% year-over-year uptick.

As a result, home prices remained largely flat, down -0.8% annually to to $1,074,425. That’s also down -2.9% from the previous month.

However, these relatively calm conditions aren’t set to last long-term, warns TRREB President Jennifer Pearce; anticipated interest rate cuts should rev up sales and price growth later this year and into next.

“The Bank of Canada’s rate cut announced on September 4 will lead to a further improvement in affordability, especially for those using variable rate mortgages,” she stated. “First-time buyers are especially sensitive to changes in borrowing costs. As mortgage rates continue to trend lower this year and next, we should experience an uptick in first-time buying activity, including in the condo market.”

Also read: GTA home prices eased in August as condo sales plummet

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.

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