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Current Mortgage Rates in Ontario
Current rates are temporarily unavailable. Contact us for today's available mortgage options.
What Rate Can You Actually Qualify For?
The lowest rate advertised in Ontario isn't necessarily the rate available to every borrower.
Lenders can price mortgages differently depending on factors such as:
- Down payment
- Purchase price
- Mortgage amount
- Insured, insurable or conventional status
- Property type
- Owner-occupied vs. rental property
- Credit history
- Income and employment
- Amortization
- Mortgage term
- Transaction type
- Lender
That's why comparing a headline rate without looking at the underlying mortgage can be misleading.
Fixed vs. Variable Mortgage Rates
The biggest decision isn't always which lender has the lowest rate. It can also be whether a fixed or variable mortgage makes sense for you.
5-Year Fixed Mortgage
Your interest rate remains fixed for the five-year term, so your scheduled principal-and-interest payment generally remains predictable during the term.
A fixed mortgage may appeal to borrowers who value payment certainty.
The trade-off is that breaking a fixed mortgage early can result in a significant prepayment penalty depending on the lender, mortgage contract and timing.
5-Year Variable Mortgage
A variable mortgage rate can move as the lender's prime rate changes.
Variable mortgages are commonly expressed relative to prime, such as:
Prime − X.XX%
Because the rate can change, the cost of borrowing can change during the mortgage term.
A variable mortgage may appeal to borrowers who are comfortable with rate fluctuations in exchange for the potential benefits of variable pricing.
The exact payment mechanics depend on the mortgage product. Some variable-rate mortgages have fixed payments while the interest/principal allocation changes; others have payments that change as the rate changes.
Fixed vs. Variable: Which Is Better?
There isn't one mortgage type that is best for everyone.
The right choice depends on factors such as:
- How long you expect to keep the mortgage
- Your tolerance for payment changes
- Your cash flow
- Your expectations about future rates
- Your plans to sell or refinance
- The mortgage's prepayment privileges
- The lender's penalty calculation
- The difference between the fixed and variable rates available to you
The lowest rate isn't automatically the lowest-cost mortgage.
A mortgage with a slightly higher rate but better prepayment privileges or lower break penalties can sometimes be more appropriate depending on the borrower's plans.
Insured vs. Insurable vs. Conventional Mortgages
This distinction is important when comparing Ontario mortgage rates.
Insured Mortgage
Generally applies when the down payment is less than 20% and mortgage default insurance is required.
Because the mortgage is insured, lenders may offer different pricing than they would for an uninsured mortgage.
Insurable Mortgage
A mortgage that meets the eligibility requirements for mortgage insurance even though the borrower may have 20% or more down and therefore doesn't need to purchase mortgage default insurance.
This can qualify for different lender pricing than an uninsurable mortgage.
Conventional / Uninsured Mortgage
Generally refers to a mortgage where the borrower has at least 20% equity/down payment and mortgage default insurance isn't required.
Not every uninsured mortgage receives the same rate. Property, loan amount, transaction type and lender criteria can still affect pricing.
What Determines Your Mortgage Rate in Ontario?
1. Your Down Payment
Your down payment affects both the size of your mortgage and, depending on the transaction, whether mortgage default insurance is required.
A borrower with 5% down isn't necessarily offered the same mortgage pricing as someone putting 20% down.
2. Your Credit
Your credit history can affect which mortgage products and lenders are available to you.
Strong credit doesn't guarantee the lowest rate, but it can help you qualify for a broader range of mortgage products.
3. Your Income
Lenders assess your income and debt obligations when determining how much they're prepared to lend.
Salaried, hourly, commissioned and self-employed income can be assessed differently depending on the lender.
4. The Property
The property you're buying can matter.
A standard owner-occupied detached home can be treated differently from:
- A condominium
- An investment property
- A multi-unit property
- A rural property
- An unusual property type
- A property with specific occupancy or use considerations
5. Your Mortgage Amount
Mortgage pricing can vary depending on the size of the mortgage and the lender's product criteria.
6. Your Mortgage Term
A 2-year fixed mortgage, 3-year fixed mortgage and 5-year fixed mortgage can have very different rates.
The lowest rate isn't necessarily attached to the term that makes the most sense for your situation.
Why Mortgage Rates Change
Mortgage rates don't all move for the same reason.
Fixed mortgage rates are influenced heavily by the bond market and lender funding costs, while variable mortgage rates are more directly connected to lenders' prime rates and the Bank of Canada's monetary-policy environment.
That means:
The Bank of Canada does not simply set the mortgage rate you see advertised.
Financial institutions set their own prime rates, while the Bank of Canada's policy rate influences borrowing conditions and typically affects lenders' prime rates.
This is one reason fixed and variable mortgage rates can move differently.
What Is a Good Mortgage Rate in Ontario?
There isn't one number that is automatically a "good" mortgage rate.
A rate should be evaluated alongside:
- Mortgage type
- Term
- Down payment
- Mortgage amount
- Amortization
- Prepayment privileges
- Portability
- Penalty calculation
- Restrictions
- Lender
- Your plans for the property
For example, a mortgage advertised at a lower rate may have restrictions or penalties that make it less attractive to a borrower who expects to sell or refinance before the term ends.
The better question is:
What mortgage gives you the best combination of rate, flexibility and cost for your situation?
How to Get the Best Mortgage Rate in Ontario
If you're shopping for a mortgage, don't compare the interest rate alone.
1. Compare multiple lenders
Different lenders have different products, pricing and underwriting policies.
2. Compare the mortgage features
Look at:
- Prepayment privileges
- Portability
- Penalties
- Payment frequency
- Term
- Fixed vs. variable
- Refinance restrictions
3. Understand what rate you're actually being offered
Ask whether the rate is:
- Insured
- Insurable
- Conventional
- A promotional rate
- A restricted product
- A lender-specific product
4. Get your rate based on your actual file
A personalized rate is more useful than a generic advertised rate.
Mortgage Rates From Banks vs. Mortgage Brokers
A bank offers mortgage products from that financial institution.
A mortgage broker can compare mortgage products from lenders available through the brokerage.
That doesn't mean a broker will always have a lower rate than your bank.
It means you have another way to compare the market.
One difference buyers often notice
In our experience, some bank applications can involve more internal review, documentation and due diligence than a straightforward A-lender application through a broker.
That isn't true of every bank or every borrower.
Some applications are extremely straightforward at a bank, while other files can require substantial documentation regardless of how they're submitted.
The advantage of working with a broker is being able to assess the file first and identify lenders whose guidelines may fit the application.
Each lender independently decides whether to approve a mortgage and on what terms.
Mortgage Rates for Different Types of Buyers
First-Time Buyers
If you're buying your first home, your down payment, purchase price and qualification can all affect the mortgage options available to you.
A mortgage pre-approval can help you understand your potential borrowing range before you start making offers.
Self-Employed Buyers
Self-employed income can be assessed differently between lenders.
A broker can help determine which lender guidelines may be appropriate for your income structure before an application is submitted.
Investors
Investment properties can have different qualification and down-payment requirements from owner-occupied homes.
Rental income may also be treated differently depending on the lender.
Buyers With Less Than 20% Down
A down payment under 20% will generally require mortgage default insurance, subject to the applicable rules and eligibility requirements.
The mortgage rate and qualification process can differ from an uninsured mortgage.
Renewals
Your current lender's renewal offer isn't necessarily the only option available.
Before renewing, compare:
Rate + term + penalty + prepayment privileges + flexibility
rather than looking at the rate alone.
Refinancing
If you're accessing equity, consolidating debt or changing your mortgage structure, the best mortgage may be different from the mortgage with the lowest advertised purchase rate.
Mortgage Calculator
Enter your own numbers to estimate a monthly payment. This is a general estimate, not a quote or approval.
Estimated monthly payment
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What Rate Do I Need to Qualify For?
The rate itself is only one part of mortgage qualification.
Lenders generally consider your income, debts, credit history, down payment and the property you're purchasing.
You may also need to qualify under Canada's mortgage stress-test rules. The Financial Consumer Agency of Canada notes that mortgage pre-approval can help estimate how much you may qualify for, but pre-approval does not guarantee final mortgage approval.
Ontario Mortgage Rate FAQs
Anthony Krasno · Mortgage Broker
Estate Mortgage Group · FSRA Licence #13425
Mortgage rates and lending criteria can change. Mortgage approval is subject to lender underwriting, property requirements and the borrower's financial circumstances. Information on this page is for general educational purposes and is not a commitment to lend or a guarantee of approval.