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Evaluate all of Ontario's best mortgage rates in one place. RATESDOTCA’s Rate Matrix lets you compare pricing for all key mortgage types and terms.
Rates are based on a home value of $400,000
| Insured | 80% LTV | 65% LTV | Uninsured | Bank Rate | |
|---|---|---|---|---|---|
| 1-year fixed rate | 4.99% | 5.89% | 5.89% | 5.99% |
7.49%
|
| 2-year fixed rate | 6.19% | 6.15% | 6.15% | 6.34% |
7.09%
|
| 3-year fixed rate | 5.79% | 5.89% | 5.89% | 5.79% |
6.70%
|
| 4-year fixed rate | 5.54% | 5.54% | 5.54% | 5.54% |
6.49%
|
| 5-year fixed rate | 5.24% | 5.49% | 5.49% | 5.54% |
5.84%
|
| 7-year fixed rate | 6.00% | 6.05% | 6.05% | 6.00% |
6.70%
|
| 10-year fixed rate | 6.40% | 6.39% | 6.39% | 6.00% |
7.25%
|
| 3-year variable rate | 7.70% | 6.50% | 6.50% | 6.10% |
8.60%
|
| 5-year variable rate | 5.99% | 6.10% | 6.10% | 6.10% |
6.95%
|
| HELOC rate | 7.70% | 8.20% | 8.20% | 7.40% | N/A |
| Stress test | 6.99% | 7.44% | 7.44% | 5.25% | N/A |
Updated November 15, 2023
Ontario is the most populous province in Canada and home to the most number of lenders in the country. The province is a major immigration attraction and Ontarians have witnessed rising cost of living in the post COVID-19 pandemic world like no one else.
It’s no coincidence that all five of Canada’s top banks are headquartered in Toronto, Ontario. So are some of the country’s largest and most competitive credit unions, like Meridian Credit Union, DUCA Financial Services Credit Union, and Alterna Savings and Credit Union. The province has the most bank branches, mortgage brokers and credit unions in the country. And they’re all vying for your mortgage business.
According to November 2022 Abacus data on housing affordability in Ontario, housing affordability remains a persistent issue in the province, and the desire to own a home is increasing, with 69% of non-homeowners expressing a strong desire for homeownership, representing a 9% increase from a previous survey. Only 5% of respondents are content with renting indefinitely, marking a 17% decrease.
Rising interest rates due to Bank of Canada’s overnight rate increase is also impacting homeowners with mortgages, prompting them to take steps to reduce their spending. If interest rates continue to rise, 21% of these homeowners may have to consider selling their homes. This concern is especially pronounced among younger homeowners who recently entered the housing market. The Bank of Canada remains concerned about inflation remaining higher for longer and becoming entrenched. Although the policy rate has been held at 5% it is still prepared to hike rates further if necessary.
While some provinces have mortgage rates like that in Ontario, for instance, Alberta, British Columbia have 5.64% for 5-Year Fixed rate and 6.05% for 5-Year Variable rate, same as Ontario. Other provinces like Manitoba, Nova Scotia, New Brunswick and Saskatchewan have higher mortgage rates available. This difference in rates is caused by various factors such as lack of competition in the mortgage market. The more lenders a market will have, the lower will be the rate available to home buyers. Also, differences in household income, population, real estate prices and demand, and mortgage amounts also impact the mortgage rates.
The Big 6 banks in Canada (RBC, TD, Scotiabank, CIBC, BMO, and National Bank) are vying for the home buyers in Ontario and are also the largest lenders in the province. Some other B-lenders and alternative lenders are also vying for a piece of the mortgage pie in Ontario. Credit unions on the other hand have also entered the race with the big banks for mortgage buyers in Ontario.
Ontario also has a higher-than-average ratio of mortgages with 30-year amortizations. This is most likely a result of high property values, which lead borrowers to try and minimize their mortgage payments. The province also has a larger percentage of private mortgages. That’s a direct result of Ontario having more private mortgage lenders than anywhere else in Canada.
Ontario tends to have the same selection of mortgages as any other province, with a higher concentration of large (a.k.a. “jumbo”) mortgages compared to other provinces. That could be due to Ontario’s higher average incomes.
As with the rest of the country, Ontario’s mortgage market peaks in the spring, with March, April and May being the busiest months. The best rates are often available during this time when the competition is fiercest.
In Ontario, 5-year fixed mortgages are popular for their predictability and stability. Your interest rate and payments remain the same for five years, following the 5-Year Government of Canada bond yield, with a slight premium. Shorter-term mortgages are also common, but they require more frequent renewals, which can be burdensome for some mortgage buyers. Locking in a rate for 5 years provides peace of mind and avoids short-term rate fluctuations, making it a preferred choice for many homeowners.
Homeowners in Canada have seen the greatest ups-and-downs in mortgage history in the last three years than ever before. With mortgage rates dropping significantly in Q2 2020 at the beginning of the COVID-19 pandemic, to the Bank of Canada increasing overnight policy rate 10 times since March 2022, as part of its monetary tightening policy to curb inflation.
The Bank aims to bring inflation down to 2% from the current 3.8%. This tightening has added to the woes of homebuyers seeking mortgage because the rates are exorbitantly high, and most people are struggling to buy their first homes. Homeowners have been finding it difficult to renew their mortgage because of the high interest rates. Here’s a look at how the 5-year conventional mortgage rates and 5-year personal fixed term rates posted by Canadian chartered banks have changed in the last three years:
Source: Bank of Canada
Ontario’s new tagline is “A Place to Grow,” which is also what’s expected for the province’s population. The Ontario Ministry of Finance projects the population of Ontario will increase some 30.2% over the next two decades, bringing the total population to 18.5 million by July 1, 2041. With a population of more than 13.5 million, Ontario is home to about 2 in 5 Canadians. More than 85% live in urban centres, in cities on the shores of the Great Lakes.
There are so many incredible aspects to Canada’s most populous province, from its natural resources to its growing cities. So it is no surprise that many new immigrants want to live, work and raise a family here.
Based on CREA data, house prices in some Ontario markets in September 2023 are having a decent increase in average house prices comparing to previous year, especially in some major cities like the Greater Toronto Area (+2.4%), Hamilton-Burlington (+1.9%), Sudbury (+9.4%), which have not been affected due to the growing interest rates. However, some markets have seen decrease in house prices, like Brantford (-2.18%), Cambridge (-0.6%), Durham (-0.67%), Kingston (-3.25%), Niagara (-1.23%), Oakville-Milton (-0.53%). This could be due to the paucity of demand in the housing market as buyers are struggling to pass mortgage stress test at this high rate.
The average house prices in different regions of Ontario as of September 2023 compared to September 2022 are below:
Barrie and District
Brantford
Cambridge
Durham Region
Greater Toronto
Guelph
Hamilton-Burlington
Kingston
Kitchener-Waterloo
Niagara Region
Oakville-Milton
Ottawa
Sudbury
Windsor-Essex
Ontario provincial average
$809,400
$676,600
$741,300
$899,014
$1,127,000
$840,200
$854,200
$553,800
$734,600
$651,700
$1,277,500
$643,600
$449,400
$579,500
$851,756
$796,400
$691700
$745,800
$905,101
$1,100,500
$823,000
$838,300
$572,400
$726,600
$659,800
$1,284,300
$640,500
$409,500
$572,800
$835,848
Year Over Year Changes
+$13,100 (+1.63%)
-$15,100 (-2.18%)
-$4,500 (-0.60%)
-$6,087 (-0.67%)
+$26,500 (+2.41%)
+$17,200 (+2.09%)
+$15,900 (+1.90%)
-$18,600 (-3.25%)
+$8,000 (+1.10%)
-$8,100 (-1.23%)
-$6,800 (-0.53%)
+$3,100 (+0.48%)
+$39,900 (+9.74%)
+$6,700 (+1.17%)
+$15,908 (+1.90%)
There are different factors that can impact your mortgage rate, including your financial condition. However, some external factors are beyond your control and can impact your mortgage in a big way. Here are some factors that can impact your mortgage rate in Ontario:
Finding the right mortgage depends on your financial situation and how much mortgage you can afford.
Ontario’s average value of new mortgage loans is among the highest in the country, only second to British Columbia. Alberta is cutting close to Ontario, but Ontario’s average value of new mortgage loans are significantly higher from the national average as well. We can see the trend that average new mortgage loan value in Q1 - Q2 2023 is lower than Q1 - Q2 2022, because of the real estate prices were skyrocketing in Q1 - Q2 2022, and came down significantly in 2023, based on the Single Family Benchmark Price from CREA data. Another reason for the average mortgage loan value is lower also because of the possibility that some homebuyers tapped into the equity of their existing homes to pay downpayment on the new property.
| Geography | 2021 Q4 | 2022 Q1 | 2022 Q2 | 2022 Q3 | 2022 Q4 | 2023 Q1 | 2023 Q2 |
|---|---|---|---|---|---|---|---|
| Canada | 350,686 | 361,001 | 366,163 | 363,654 | 325,612 | 320,298 | 314,864 |
| Provinces | |||||||
| Newfoundland | 207,769 | 214,003 | 219,188 | 232,851 | 216,426 | 214,277 | 201,787 |
| Prince Edward Island | 246,930 | 242,214 | 244,884 | 251,957 | 253,908 | 231,844 | 234,411 |
| Nova Scotia | 238,656 | 240,473 | 250,006 | 258,677 | 237,381 | 227,788 | 234,636 |
| New Brunswick | 178,892 | 179,304 | 188,394 | 203,216 | 186,699 | 182,986 | 182,197 |
| Québec | 218,440 | 224,133 | 228,524 | 237,520 | 206,201 | 202,014 | 194,035 |
| Ontario | 434,185 | 448,031 | 462,494 | 462,701 | 418,808 | 406,429 | 405,975 |
| Manitoba | 249,534 | 247,682 | 255,490 | 272,728 | 251,420 | 237,080 | 236,740 |
| Saskatchewan | 254,453 | 251,715 | 243,338 | 260,163 | 240,763 | 232,458 | 226,308 |
| Alberta | 317,212 | 319,728 | 331,285 | 339,854 | 317,353 | 310,002 | 316,597 |
| British Columbia | 474,258 | 484,941 | 491,960 | 487,366 | 439,719 | 429,370 | 440,387 |
The average scheduled monthly payment of new mortgage loans, according to a CMHC report, in Ontario compared to other provinces is listed below. The significant increase in the average monthly mortgage payment started in Q3 2022 mainly due to the rise in Bank of Canada overnight interest rates increase started in April 2022.
| Geography | 2022Q1 | 2022Q2 | 2022Q3 | 2022Q4 | 2023Q1 | 2023Q2 |
|---|---|---|---|---|---|---|
| Canada | $1,594 | $1,722 | $1,909 | $1,923 | $1,984 | $1,922 |
| Provinces | ||||||
| Nova Scotia | $1,180 | $1,290 | $1,438 | $1,441 | $1,449 | $1,470 |
| New Brunswick | $944 | $1,026 | $1,161 | $1,162 | $1,191 | $1,179 |
| Québec | $1,093 | $1,150 | $1,266 | $1,239 | $1,274 | $1,222 |
| Ontario | $1,897 | $2,099 | $2,392 | $2,449 | $2,494 | $2,445 |
| Manitoba | $1,176 | $1,277 | $1,449 | $1,473 | $1,462 | $1,464 |
| Saskatchewan | $1,272 | $1,284 | $1,463 | $1,476 | $1,516 | $1,452 |
| Alberta | $1,476 | $1,601 | $1,800 | $1,856 | $1,907 | $1,907 |
| British Columbia | $2,038 | $2,234 | $2,506 | $2,553 | $2,607 | $2,626 |
Source: CMHC
Below are recent mortgage arrears statistics from the province of Ontario, as tracked by the Canadian Banker’s Association until August 2023.
| Date (Year-end) |
# of Mortgages | # in Arrears | % in Arrears |
|---|---|---|---|
| 2009 | 1,743,409 | 7,340 | 0.42% |
| 2010 | 1,793,660 | 6,482 | 0.36% |
| 2011 | 1,844,262 | 5,195 | 0.28% |
| 2012 | 1,866,397 | 4,061 | 0.22% |
| 2013 | 1,950,992 | 4,023 | 0.21% |
| 2014 | 1,962,120 | 3,433 | 0.17% |
| 2015 | 1,971,704 | 2,834 | 0.14% |
| 2016 | 1,974,728 | 2,449 | 0.12% |
| 2017 | 2,012,388 | 1,965 | 0.10% |
| 2018 | 2,008,774 | 1,925 | 0.10% |
| 2019 | 2,036,450 | 1,836 | 0.09% |
| 2020 | 2,111,669 | 2,135 | 0.10% |
| 2021 | 2,174,192 | 1,352 | 0.06% |
| 2022 | 2,202,656 | 1,630 | 0.07% |
| 2023 (to August) | 2,198,619 | 1,983 | 0.09% |
Source: Canadian Banker’s Association.
The table Includes data from BMO, CIBC, HSBC Bank Canada, National Bank of Canada, RBC Royal Bank, Scotiabank, TD Canada Trust, Canadian Western Bank, Manulife Bank (as of April 2004), Laurentian Bank (as of October 2010), Equitable Bank (as of November 2020)
Mortgage arrears are considered a lagging economic indicator because they typically relate to events that have happened in the past and take time for their financial impact to be felt. Payment arrears are driven primarily by employment conditions and major changes in life circumstances that can cause an unexpected loss of a significant portion of household income.
Ontario's total number of mortgages is 2,198,619 with 1,983 mortgages in arrears. Ontario's low mortgage arrears rate, at 0.09% of the total number of mortgages, can be attributed to several factors such as strong economy, mortgage regulations, government support, responsible borrowing, among others. Ontario has historically had a strong and diversified economy, with a significant job market and a variety of industries. A robust job market can help homeowners meet their mortgage obligations, reducing the risk of arrears.
Ontario homeowners may be prudent in their borrowing and monetary management, which can reduce the likelihood of falling behind on mortgage payments.
While Ontario has a low arrears rate, it's important to monitor the situation over time, especially during economic fluctuations, to ensure that homeowners continue to have the support they need to maintain their mortgage payments.
These are some of the most-asked mortgage questions in the province, as well as tips on finding the cheapest mortgage rates in Ontario.
All of Ontario’s best mortgage rates can be found on this page. Enter your mortgage type, home value and mortgage size and our rate table will do the rest. You’ll instantly see the lowest rates matching your criteria appear from dozens of lenders.
The lowest default-insured rates (for those putting down less than 20%) usually come from mortgage brokers. The lowest uninsured rates, particularly for people putting down 20%, generally come from banks.
According to CREA’s housing market forecast, Ontario is forecast to see virtually no growth in prices next year (+0.2%). Modest price growth in the 1% to 2.5% range is forecast for other provinces in 2024. With the BoC policy interest rate expected to remain stable at 5% for the remainder of 2023, mortgage rates are still hovering high and making it difficult for first time home buyers and investors to take the plunge into the housing market at this time. However, the mortgage market is abuzz with the Bank holding its policy rate at 5% until later next year, which will bring some stability to the housing market and give buyers, who can afford to own a home at that rate, some confidence to take the leap of faith.
The minimum down payment is 5% of the purchase price. But those funds can be borrowed from another source, so long as you qualify with your chosen lender.
Ontario mortgage brokers often have the lowest rates in the province, particularly for default-insured mortgages. And they’re generally free of charge for qualified borrowers. Ontario brokers also tend to provide better advice than many lender representatives since they specialize in mortgages and deal with multiple lenders. Note that all brokers must be licensed by the Financial Services Regulatory Authority of Ontario. Here’s a link to see if your broker is licensed.
Our Ontario Mortgage Payment Calculator will help you figure out how much you’ll pay with any rate you find on the site. It only takes a few minutes to use, so give it a try. You can modify the mortgage amount, mortgage term and type, amortization and payment type to see how your mortgage options and payment amount are impacted.
Not always. The lowest rates usually come with more limitations. These restrictions can cost you much more than the small rate savings. Such terms are common with “low frills” mortgages and typically kick in when you try to port, break or increase the mortgage after closing. When comparing mortgage rates, don’t be afraid to ask potential lenders questions to ensure you understand the terms and conditions of your mortgage.
Mortgage Calculators
*Based on the difference between estimated deep-discount 5-year fixed rates from Canada's top six banks and the lowest comparable rates on RATESDOTCA, as of January 14, 2022.
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