BEST MORTGAGE RATES IN ONTARIO

Compare Ontario mortgage interest rates from top lenders & save on your mortgage

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Rates Updated:   Monday January 21, 2019 08:40PM
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Rates.ca Mortgages

Are you looking to save money on your mortgage rate in Ontario? You’ve come to the right place. Searching for the lowest mortgage rate doesn’t have to be time consuming. We make it easy. Rates.ca is your number one source for the best mortgage rates in Ontario. Avoid the need to shop around with various lenders and brokers and let us provide you with dozens of different rates. Our rates are available for a new purchase, refinancing, pre-approval, debt consolidation as well as renewals. Rates are available to residents of Toronto, Ottawa, London, Windsor, Kitchener, Mississauga and those living in other regions of Ontario.

We always list the mortgage products on our site from lowest rate to the highest rate. See a mortgage product you like? Simply provide your contact information and one of our partner mortgage brokers from the province will contact you within 1 business day to discuss your mortgage needs.

Modify the mortgage amount, mortgage term and type, amortization, and payment type to see how your mortgage options and payment amount are impacted. You can also use our Ontario Mortgage Payment Calculator to figure out how much you would need to borrow to purchase a particular property.

Our service is free and we're not affiliated with a particular lender or mortgage broker which ensures we remain objective and unbiased.
An Ontario Mortgage
An Ontario mortgage is a loan secured against your property. What that means is that the lender will extend you money against the value of your property. If for whatever reason you end up defaulting on your loan, the lender could take possession of your property. To many, a mortgage is a means to be able to purchase a property. Given the high property prices throughout many parts of Ontario, most people need a mortgage in order to afford to buy a home. For example if you're looking to purchase a $500,000 home and you have $50,000 saved you would need a $450,000 mortgage to complete the purchase.
High Ratio Mortgages vs. Conventional Mortgages
A high ratio mortgage is one where the home purchaser has less than a 20% down payment. For a high ratio mortgage the homeowner would be required to pay a CMHC insurance premium which protects the lender in case of the homebuyer's default on the mortgage. The CMHC premium does not have to be paid up front and can be added to the total mortgage amount. It is applied as a percentage to the total mortgage amount and varies for down payments 5-9.99%, 10-14.99 and 15-19.99%. No CMHC premium has to be paid on a conventional mortgage, where the home purchaser has at least a 20% down payment.
Difference between Mortgage Term and Mortgage Amortization
Every mortgage contract has the term as well as the amortization period defined. The term is the period of time over which the mortgage conditions are in effect. At the end of the term you can renew your mortgage, pay it off or switch lenders. A 5-year term is the most common, however, it can be as low as 6 months and as high as 25 years. The amortization period is the period of time over which the mortgage may be paid off. The maximum amortization period in Ontario is 35 years for a conventional mortgage and 25 years for a high ratio mortgage. Given that the mortgage term is generally less than the amortization period, a mortgage borrower will have to enter several mortgage contracts until the mortgage is paid off.
Types of Mortgages
A mortgage can be either open or closed. Open mortgages are loans that can be paid off at any time with no penalties. As a result of this privilege, open mortgages tend to have higher rates. Closed mortgages on the other hand have pre-payment restriction privileges. This means that if a borrower wants to pay off a closed mortgage ahead of its renewal date, they would face a pre-payment penalty. However, closed mortgages do have some flexibility as many often have certain pre-payment limits. These limits allow the holder of a closed mortgage to pre-pay a certain percentage of the mortgage amount on an annual basis without incurring a penalty.

A mortgage can also either have a fixed rate or a variable rate. A fixed rate mortgage is a mortgage loan that has a set interest rate for the duration of the term. A variable rate mortgage is a mortgage loan that has a rate that can fluctuate with the lender's prime lending rate throughout the term. That means that the rate can decrease if the prime lending rate drops and increase if the prime lending rate rises. Variable interest rate mortgages tend to have lower interest rates compared to fixed rate mortgages to compensate the borrower for the risk of being exposed to changes in interest rates. One would benefit from a variable rate mortgage if the average mortgage throughout the term is below the fixed mortgage rate with the same term at the time of the mortgage origination. While variable rate mortgages generally only come in 3-year or 5-year terms fixed rate mortgages tend to be available in all terms.
Mortgages Rate Guarantee
All the rates advertised on Rates.ca have a rate guarantee which generally ranges from 30 days up to and including 120 days. This means that the lender will guarantee the borrower the rate for the specified time period upon approval regardless of whether interest rates change. If rates increase during the period you can take advantage of your lower guaranteed rate. If rates decrease you can still go with the new lower rate.
Where to Purchase a Mortgage in Ontario?
Mortgages in Ontario are sold by both lenders as well as mortgage brokers. Lenders sell their own mortgage products directly to the consumer and consist of banks, trust companies and credit unions. Mortgage brokers on the other hand are licenced individuals that sell mortgages on behalf of lenders. Brokers offer their services free of charge to the consumer and have access to many types of mortgages from a variety of lenders.
Province of Ontario Information
The Ontario economy is expected to lag the rest of Canada in term of growth for the rest of 2013 but is expected to turn around in 2014.

Population: 13,537,994 (38.5% of Canada)
Regional population distribution: GTA 47.8%, Central 21.5%, Eastern 12.9%, Southwestern 11.8%, Northeastern 4.1%, Northwestern 1.8%
Foreign born population: 53.3%
Visible minorities: 25.9%
Age distribution: Under 25 29.5%, 25-44 27.4%, 45-64 28.1%, 65 and over 15%
Median Age: 40.1
Education: 31.5% aged 25 to 64 had a university degree (highest proportion in Canada)
Marital Status: 50.3% (aged 15 and over)

Source: Ministry of Finance Q2 2013 Ontario Demographic, CMHC Q4 2013 report and 2011 Census
Province of Ontario Real Estate Market
In the last few years Ontario resale prices have grown above the inflation rate. The fact that the market remains balanced and less property sales occur at higher prices will result in less upward pressure on Ontario home sales for the rest of 2013 and 2014. Housing starts have slowed down in 2013 relative to 2012 but will stabilize in 2014.

Housing performance should be better in Southwestern and northern Ontario due to the ongoing economic recovery south of the border, among other factors. The larger southern Ontario markets will experience more modest growth due to high inventories of apartments, relatively high property prices and less inventory demand.

Mortgage rates are expected to remain low relative to historical standards. Rates are expected to steadily increase in 2014.

Housing Starts (2013F): 60,800 (20.8% decrease from 2012)
Housing Starts (2012): 76,742 (13.2% increase from 2011)
MLS Average sale price (2013F): $398,000 (3.5% increase from 2012)
MLS Average sale price (2012): $384,455 (5.3% increase from 2011)
Source: CMHC Q4 2013 report
Mortgage Calculators
Try out our interactive mortgage calculators to explore different payment options, determine how much you can afford to borrow, compare refinancing options, calculate pre-payment penalties, explore the rent vs. buy decision, calculate land transfer taxes and much more.
Mortgage Guides
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Mortgage vs. HELOC
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Closing Costs
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Mortgage Payment Frequency
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Fixed Vs. Variable Mortgage Rates
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Mortgage Term
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Obtaining Or Renewing A Mortgage
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Open vs. Closed Mortgage
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Mortgage Renewal Facts
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Mortgage Approval Process
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First Time Home Buyers
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Land Transfer Tax
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Shop Before You Renew
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Renting Or Buying A House
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Mortgage Down Payment
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How To Buy a Mortgage in Canada
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Mortgage Refinancing
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Mortgage Default Insurance
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Mortgage Prepayment Options
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Mortgage Amortization
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