The Best Current Mortgage Rates in Toronto
Compare mortgage rates from Toronto's top banks, credit unions and brokers.
Today's Best Mortgage Rates in Toronto
Evaluate Toronto's best mortgage rates in one place. RATESDOTCAs Rate Matrix lets you compare pricing for all key mortgage types and terms.
Rates are based on an average mortgage of $500,000 and subject to change based on filter criteria.
Updated 02:57 on May 04, 2025| Placeholder |
Insured
The rates in this column apply to borrowers who have purchased mortgage default insurance.
This is required when you purchase a home with less than a 20% down payment.
The home must be owner-occupied and the amortization must be 25 years or less.
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80% LTV
The rates in this column apply to mortgage amounts between 65.01% and 80% of the property value. The home must be owner-occupied and have an amortization of 25 years or less. You must have purchased it for less than $1 million. These rates are not available on refinances. Refinances require "Uninsured" rates.
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65% LTV
The rates in this column apply to mortgage amounts that are 65% of the property value or less. The home must be owner-occupied and have an amortization of 25 years or less. You must have purchased it for less than $1 million. These rates are not available on refinances. Refinances require "Uninsured" rates.
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Uninsured
The rates in this column apply to purchases over $1 million, refinances and amortizations over 25 years. More info on the differences between insured and uninsured rates.
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Bank Rate
Bank Rate is the mortgage interest rate posted by the big banks in Canada.
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|---|---|---|---|---|---|
| 1-year fixed rate | 4.99% | 4.69% | 4.69% | 5.59% |
5.49%
|
| 2-years fixed rate | 3.89% | 4.19% | 4.19% | 4.70% |
4.79%
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| 3-years fixed rate | 3.79% | 3.79% | 3.79% | 4.09% |
4.39%
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| 4-years fixed rate | 4.29% | 4.15% | 4.15% | 4.44% |
4.29%
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| 5-years fixed rate | 3.79% | 3.84% | 3.89% | 3.84% |
3.99%
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| 7-years fixed rate | 5.19% | 5.00% | 5.00% | 5.19% |
5.00%
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| 10-years fixed rate | 5.24% | 5.25% | 5.25% | 5.29% |
6.09%
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| 3-years variable rate | 4.40% | 4.30% | 4.30% | 4.40% |
6.35%
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| 5-years variable rate | 4.00% | 4.04% | 4.04% | 4.05% |
4.25%
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| HELOC rate | N/A | N/A | N/A | N/A |
N/A
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| Stress Test | 5.25% | 5.25% | 5.25% | 5.25% |
N/A
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Today's Best Mortgage Rates in Canada
Evaluate Canada’s best mortgage rates in one place. You can compare the most current mortgage rates and monthly payments from 175+ banks and lenders across Canada.
Rates are based on an average mortgage of $500,000 and subject to change based on filter criteria.
Lender
|
Insured
|
Insurable
|
Uninsured
|
|---|---|---|---|
Frank Mortgage
|
3.79%
$2,573.49 / month
|
3.99%
$2,627.39 / month
|
3.89%
$2,600.37 / month
|
Compass Mortgage Group oa My Mortgage Power
|
3.89%
$2,600.37 / month
|
3.99%
$2,627.39 / month
|
3.89%
$2,600.37 / month
|
MMG Mortgages
|
3.94%
$2,613.86 / month
|
4.14%
$2,668.19 / month
|
3.94%
$2,613.86 / month
|
Northwood Mortgage Ltd.
|
4.19%
$2,681.85 / month
|
4.49%
$2,764.59 / month
|
4.19%
$2,681.85 / month
|
BMO
|
4.25%
$2,698.30 / month
|
4.47%
$2,759.03 / month
|
4.47%
$2,759.03 / month
|
Innovation Federal Credit Union
|
4.49%
$2,764.59 / month
|
4.49%
$2,764.59 / month
|
4.49%
$2,764.59 / month
|
Gibson Mortgages
|
4.99%
$2,905.18 / month
|
4.44%
$2,750.71 / month
|
4.29%
$2,709.29 / month
|
True North Mortgage
|
2.99%
$2,363.66 / month
|
2.99%
$2,363.66 / month
|
2.99%
$2,363.66 / month
|
Hypotheca
|
3.74%
$2,560.11 / month
|
3.74%
$2,560.11 / month
|
3.74%
$2,560.11 / month
|
DUCA Financial
|
3.79%
$2,573.49 / month
|
3.79%
$2,573.49 / month
|
3.79%
$2,573.49 / month
|
Monster Mortgage
|
3.79%
$2,573.49 / month
|
3.79%
$2,573.49 / month
|
3.79%
$2,573.49 / month
|
Nesto
|
3.84%
$2,586.91 / month
|
3.84%
$2,586.91 / month
|
3.84%
$2,586.91 / month
|
The Mortgage Advisors
|
3.87%
$2,594.98 / month
|
3.87%
$2,594.98 / month
|
3.87%
$2,594.98 / month
|
Interior Savings
|
3.89%
$2,600.37 / month
|
3.89%
$2,600.37 / month
|
3.89%
$2,600.37 / month
|
City Wide Financial Corp
|
3.89%
$2,600.37 / month
|
3.89%
$2,600.37 / month
|
3.89%
$2,600.37 / month
|
Prospera Credit Union
|
3.94%
$2,613.86 / month
|
3.94%
$2,613.86 / month
|
3.94%
$2,613.86 / month
|
Mortgage Brokers City Inc
|
3.94%
$2,613.86 / month
|
3.94%
$2,613.86 / month
|
3.94%
$2,613.86 / month
|
Jump straight to...
- Toronto mortgage rate market characteristics in 2024
- Mortgage rate trends in Toronto (2020-2024)
- What affects mortgage rates in Toronto?
- Toronto housing market trends (2023-2024)
- Average house prices in Toronto (2023-2024)
- Average new mortgage loan value in Toronto (2020-2024)
- Average mortgage monthly payments in Toronto (2020-2024)
- How to get the lowest Toronto mortgage rates
- Tips for first-time homebuyers in Toronto
- Mortgage lenders and brokers in Toronto
- Toronto mortgage rate forecast
- Frequently asked questions about mortgages in Toronto
Freelance writer
Toronto mortgage rate market characteristics in 2024
Toronto, Canada’s largest, and North America’s fourth-largest city, is home to a diverse population that attracts immigrants and cultures from all over the world. With about three million in its core and six million in the Greater Toronto Area, people living here can find work and homes in a variety of sectors, areas and price points.
Because of its size and diverse workforce, Toronto is also home to Canada’s largest banks and financial lenders, also known as The Big Five, which include:
- Bank of Montreal (BMO)
- Canadian Imperial Bank of Commerce (CIBC)
- Royal Bank of Canada
- Scotiabank
- Toronto-Dominion (TD) Bank
Other mortgage and lending institutions include:
- Alterna Credit Union
- DUCA Financial Services Credit Union
- National Bank
- Meridian Credit Union
- Tangerine
- True North Mortgage
Home sales and price trends in Toronto
Even with a lower-than-expected inflation rate, and as a result, lower interest rates from the Bank of Canada, the housing market in Canada, and Toronto specifically, remains slow. The Canadian Real Estate Association (CREA) has downgraded its housing market forecast for the rest of the year and said interest rate cuts have not improved the market. CREA says things will remain in a ‘holding pattern until next spring.’
Also, although sales volumes have edged higher, a larger percentage of homes is sitting on the market for longer than in 2023.
Housing prices started to fall since about the second quarter of 2022 when the Bank of Canada raised interest rates. However, those prices have stabilized in the second half of 2023 and 2024 as inflation and rates have come down. This could lead to greater inventory in the market but also demand as rates are expected to fall further into 2025.
Buying a home in Toronto as a newcomer
Toronto is the number one city for newcomers to Canada. As a result, the demand for special programs is higher than other parts of the country. That is why for people just moving to Canada, including students who may be here temporarily, many lenders offer programs to meet their needs. To get a mortgage you will have to prove to lenders you have:
- A stable income
- Decent credit
- A down payment
Many other aspects of your financial status may affect your ability to get a loan. For example, how large a down payment are you making? Can you get a reference from your home bank? Are you a permanent resident or non-permanent resident?
These are the issues you will need to discuss with your lender.
Home-buying incentives
The Government of Canada also offers various programs to assist homebuyers with their purchases, such as:
- The First-Time Home Savings Account (FHSA). Allows new homebuyers in Canada to save up to $40,000 tax-free when buying a home with an annual contribution of $8,000.
- GST/HST new housing rebate. Provides a rebate for some of the tax you pay when purchasing a home.
- Home buyers’ amount. Offers a non-refundable income tax credit on a qualifying loan.
- Home Buyers’ Plan (HBP). Allows you to withdraw up to $35,000 in a calendar year from your RRSP to buy of build a qualifying home for yourself or a relative with a disability.
Mortgage rate trends in Toronto (2020-2024)
The good news on the monetary policy front is that after about two years of interest rate tightening meant to curb inflation, the trend has reversed. In fact, inflation has reached a lower-than-expected 1.6% as of October 2024.
This is the weakest inflation rate since early 2021, at the height of the pandemic. This also opens the door for further interest rate cuts by the Bank of Canada, which started loosening rates in June 2024. The current overnight rate stands at 3.75%, as of October 2024.
In Toronto, the five-year fixed rate has dropped from a peak of 4.79% as of May 2024 to about 4.04% as of October 2024, according to RATESDOTCA inhouse data. That decrease in mortgage rates follows the drop in bond yields. Five-year government bond yields were as high as 4.4% in October of 2023 but have declined beginning June 2024 into September with a rate of 2.7%.
Five-year variables also peaked in May at 6% and stand at about 5.35% as of October 2024. With inflation and interest rates coming down, the market may spur further activity and attract new home buyers. The total inflation rate has dropped to 1.6% and, excluding things like gas prices, the inflation rate was still above the 2% mark. As the inflation rate drops and/or stabilizes, it’s safe to assume further rate cuts will come, and variable rates will follow.
What affects mortgage rates in Toronto?
Mortgage rates in Toronto are affected by many factors, both outside and within your control. Here are some of the biggest factors to affect mortgage rates:
Bond market
5-year bond yields are the ones to watch out for, as an increase in those is likely lead to an increase in 5-year fixed mortgages. The current bond yield trend has been on a downward cycle since around May 2024.
Supply and demand
Like any consumer good, when demand is high, prices go up. However, lenders competing for your business may lower rates to stay competitive and win your business.
Your personal factors
There are numerous factors that are unique to you that might affect your mortgage rate, such as:
- Credit score. Banks want to know you can pay down your mortgage. Your credit score is an indicator of your past, and possibly future, ability to pay.
- Down payment. The greater the down payment you make, the lower your interest rate may be. Sizeable down payment shows lenders you are a ‘good risk’ and will be a valuable customer.
- Rate type. Fixed rates stay unchanged, or ‘fixed,’ throughout their term. Variable rates fluctuate based on the prime lending rate set by the lender.
- Mortgage loan term. A longer-term loan may allow you to negotiate a lower rate than a short-term loan, of one year, for example.
- Personal income. Mortgage lenders will want to know you can pay your mortgage and your debt-to-income ratio (percentage that evaluates your debt compared to your gross income) can sustain payments.
- Appraisal value. If your potential home is appraised higher than anticipated, it could reduce your down payment value. This, unfortunately, has the effect of increasing your risk factor and the mortgage rate you might receive from a lender.
- First-Time Homebuyer Program. The First-Time Homebuyer Program enables newcomers to Canada to get tax credit that could help them buy their first home. If you are a first-time homebuyer in Ontario, you get additional provincial discounts on your new home. This may have an impact on your mortgage rate as you would have to take mortgage insurance as well.
- Amortization. Some good news for homebuyers looking to extend their affordability issues. The Government of Canada announced in its Budget 2024 a 30-year amortization for insured mortgages for first-time homebuyers purchasing new builds. This can help people reduce their monthly payments by adding five additional years to pay off the mortgage (as opposed to the previous 25-year amortization period).
Toronto housing market trends (2023-2024)
Sales in 2023 and 2024 are a slight improvement over 2022, when the Bank of Canada began the rate hikes. Since rates have come down and inventory has increased, sales in the early part of 2024 were more robust but declined somewhat into the summer and fall months.
As a result, new listings were higher in 2024, approaching 2021 levels, as indicated by the latest report from TREB. Sellers have re-entered the market in the hopes that lower interest rates will entice buyers back into a buying mood. Unfortunately for those same sellers, sales remain relatively slow, which is why the ‘sales-to-new-listings’ ratio is low. This, in turn, is driving down prices for homes (high supply but less demand).
Resale homes, on the other hand, have fared better and have remained steady in 2024 when compared with previous years between 2021 and 2023.
Condo market
The condo market took a hit in 2024, according to the latest TREB condo market report. With a more than 83% increase in active listings in Q2 2024 versus Q2 2023, many owners may be trying to get rid of an investment that they could no longer afford.
Condo apartment sales amounted to 5,474 in Q2 2024, which is a drop of nearly 20% compared to 6,824 sales in Q2 2023.
But condo owners are holding firm on price as prices only decreased by 1.2%. The average selling price was $729,005 in Q2 2024 compared with $737,925 in Q2 2023.
Average house prices in Toronto (2023-2024)
There has been a considerable rise and then fall in housing prices when you compare pandemic era pricing with more recent numbers. In Q4 2021, housing prices rose 3% to 4% month-over-month and about 30% year over year across all sectors, according to CREA.
Looking at all three sectors of single-family benchmark homes, and one- and two-storey townhomes, we can see a similar trend. As interest rates began climbing, prices for homes began to drop until about Q1 2023.
CREA’s composite benchmark shows that home prices in the pandemic, around September 2021, were at $1,067,200, and as of July 2024, stand at $1,089,800 – a percentage increase of only 2.12%. Even as rates are being cut, we still don’t see any dramatic increase in prices or sales. In fact, there have been significant drops throughout the first half of 2024, month over month and year over year. If you compare the July 2024 composite benchmark of $1,067,200 to the July 2023 composite benchmark of $1,152,600, for instance, you’ll notice that the average price has dropped by 5.45% year over year. This is the case across all sectors. So, while home prices are no longer in freefall as of Q1 2023, home prices in 2024 remain largely flat month-to-month.
It may seem that more has been coming onto the market since summer 2024, and yes, rates are coming down, but buyers are still faced with high costs of living and relatively high interest rates, with many people still waiting on the sidelines. Another rate cut or two and greater supply might change all of that.
Many in the industry see a 4% mortgage rate as an ’inflection point’ when buyers would begin coming back into the market, which should be happening soon. And since the Government of Canada bond yield is below 3%, rates are trending downward to under 5%, as of October 2024.
Average Toronto house prices by sector (2023 vs. 2024)
| JUL 2024 | JUL 2023 | YoY change | MoM change (Jul vs. Jun 2024) | |
|---|---|---|---|---|
| Composite | $1,089,800 | $1,152,600 | -5.45% | 0.15% |
| Single family | $1,318,600 | $1,383,400 | -4.68% | 0.14% |
| One storey | $1,099,100 | $1,156,900 | -5.00% | -0.33% |
| Two storey | $1,389,400 | $1,454,000 | -4.44% | 0.22% |
Source: CREA
Average new mortgage loan value in Toronto (2020-2024)
Since the pandemic in 2020, Toronto’s average mortgage loan value has seesawed as interest rates have tracked. Starting in Q1 2020, the average new mortgage loan value in Toronto was $396,937, according to Canada Mortgage and Housing Corporation (CMHC). As rates remained low to help fuel the economy during the pandemic, home prices and average new mortgage loan values in Toronto increased culminating in a peak of $567,448 in Q3 2022. This coincides with the Bank of Canada’s decision to raise interest rates to stave off a rise in inflation that year (starting in March 2022).
This had the effect of reducing housing interest and limiting the number of people looking for loans. People were no longer able to quantify for the same amount of loans, and housing prices came down significantly.
As rates in Toronto have been slowly decreasing starting in 2024, loan values have slightly increased. They reached a low of $480,272 in Q2 of 2023. As of Q2 2024, the loan value has reached $506,593, as rates have started to come down. For comparison, on the national level, the new mortgage loan value sits at $332,825, while on the provincial level, it is at $427,078 (as of Q2 2024), putting Toronto’s average well above the rest of the country (aside from Vancouver, which has the average new mortgage loan value of $515,747 as of Q2 2024).
Average new mortgage loan value (Toronto vs. Ontario vs. Canada)
| 2020 Q4 | 2021 Q1 | 2021 Q2 | 2021 Q3 | 2021 Q4 | 2022 Q1 | 2022 Q2 | 2022 Q3 | 2022 Q4 | 2023 Q1 | 2023 Q2 | 2023 Q3 | 2023 Q4 | 2024 Q1 | 2024 Q2 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Toronto | $463,339 | $459,376 | $508,368 | $545,984 | $526,118 | $538,547 | $556,881 | $567,448 | $504,515 | $482,980 | $480,727 | $520,569 | $513,680 | $497,860 | $506,593 |
| Ontario | $376,522 | $380,853 | $419,836 | $448,835 | $434,185 | $448,031 | $462,494 | $462,701 | $418,808 | $406,429 | $405,749 | $434,006 | $426,021 | $421,795 | $427,078 |
| Canada | $313,607 | $323,678 | $343,971 | $364,954 | $350,686 | $361,001 | $366,163 | $363,654 | $325,612 | $320,298 | $314,540 | $338,522 | $327,899 | $323,537 | $332,825 |
Source: CMHC
Average mortgage monthly payments in Toronto (2020-2024)
According to CMHC, average monthly payments for Toronto since Q1 2020 have mostly been on an incline. In Q1 2020, monthly payments came in at $1,944. That number gradually rose throughout the rest of 2020, 2021 (with a few dips), 2022 and 2023, even as rates went up starting in 2022.
This may be due to the simple mathematics of higher rates leading to higher monthly payments, especially as mortgages came due and people were forced to renew at higher rates.
Monthly mortgage payments peaked in Q4 2023 at $3,366. The decrease in monthly payments in Q1 2024 and from Q1 to Q2 2024 was due to the dramatic decline in government bond yields and fixed rates from the peaks seen in Q3 and Q4 of 2023. As a result of lower interest rates (and slightly lower new mortgage loan values), those who get a loan in 2024 will pay less monthly than those who got one in 2023.
As of Q2 2024, Toronto monthly mortgage payments are at $3,121.
Average mortgage monthly payments (Toronto vs. Ontario vs. Canada)
| 2020 Q4 | 2021 Q1 | 2021 Q2 | 2021 Q3 | 2021 Q4 | 2022 Q1 | 2022 Q2 | 2022 Q3 | 2022 Q4 | 2023 Q1 | 2023 Q2 | 2023 Q3 | 2023 Q4 | 2024 Q1 | 2024 Q2 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Toronto | $2,005 | $1,949 | $2,117 | $2,236 | $2,137 | $2,208 | $2,466 | $2,895 | $2,937 | $2,962 | $2,890 | $3,166 | $3,366 | $3,272 | $3,121 |
| Ontario | $1,691 | $1,676 | $1,807 | $1,899 | $1,824 | $1,897 | $2,099 | $2,392 | $2,449 | $2,494 | $2,444 | $2,634 | $2,770 | $2,751 | $2,646 |
| Canada | $1,451 | $1,467 | $1,530 | $1,597 | $1,534 | $1,594 | $1,722 | $1,909 | $1,923 | $1,984 | $1,920 | $2,074 | $2,143 | $2,135 | $2,099 |
Source: CMHC
How to get the lowest Toronto mortgage rates
If you’re looking to secure a lower mortgage rate, here a few things you can do:
- Compare mortgage rates. Comparison shopping with sites like RATESDOTCA can help you find the cheapest mortgage rates in minutes. And for free.
- Negotiate for a lower rate. It is possible to negotiate a lower rate with a lender, but it requires some research on your part. Using a rate comparison site can be helpful in this instance. Let the lender know you’ve seen lower rates elsewhere. If they’re unwilling to move on price, they may be able to offer other terms that offset the higher rate.
- Improve your credit score. Having a credit score of over 750 will help you qualify for a preferred rate. It will take time to improve your score if it’s below that benchmark. You can do this by paying off any existing debts and keeping your spending 30% or less than your total credit allowance going forward. Paying your credit card statements on time (and preferably in full) is also key. Also, do not close any credit card accounts; downgrade them to a low or no-fee option instead and use them a few times a year to ensure they remain active. In a joint mortgage, lenders consider the credit scores of both borrowers.
- Get an insured mortgage. High-ratio mortgages often qualify for low rates because they need to be insured by a mortgage insurance (like CMHC, Sagen, Canada Guaranty, among others). Lenders have a guarantee that they will recoup their loan if the borrower ever defaults, which removes risk from the contract. High-ratio mortgages in Canada are only available for homes costing less than $1 million. Down payments must be less than 20%, with the cut off being 5% down.
- Choose the right term. The most popular length for a mortgage term in Canada is five years. Five years is the sweet spot for many borrowers in terms of interest rate and principal. Shorter terms tend to have lower interest but high monthly payments. Longer terms (up to 10 years) also charge higher interest rates.
- Reduce your debts. A key interest metric that lenders look at is your debt service coverage ratio. They refer to this to see if you would be able to afford your mortgage payments or if you’re at risk of defaulting. People who have enough income to service their mortgage and pay off any pre-existing debts as well as other life expenses are seen as less of a risk.
- Secure a reliable source of income. Mortgage lenders look for applicants that have a strong record of employment. A history of job instability will hurt your chances of approval.
- Watch interest rates. For a decade, Canadians enjoyed a period of ultra-low interest rates. It’s unlikely rates will be that low again (barring a major global event), but it’s still important to pay attention to the Bank of Canada’s interest rate decisions. It will save you money on interest payments in the long run.
Tips for first-time homebuyers in Toronto
If it’s your first time buying a home, here a few vital steps you can take to make the experience as painless as possible:
- Evaluate your costs
Buying a house is more than just the price. There are many other costs associated with home buying that you should incorporate into your budget.
Try laying out a budget ahead of time and estimating the costs you will incur. For example, legal fees and closing costs will add to your overall purchase price. There are also fees such as land transfer tax and the added expenses of insurance and everyday utility and maintenance expenses.
Remember to factor in a contingency fund for emergencies, like when you need more extensive repairs for structural issues. - Seek pre-approval on your mortgage loan
Pre-approvals can help you see the types of mortgage costs you will have and the interest rate you qualify for.
This information allows you to decide on the type of home or neighbourhood you can afford to live in. - Think long-term
Your life today is very different than what it will be in the future. Suppose you are just starting out and eventually may grow a family. Does the current house you are looking at meet those needs?
What about commuting, safety of the neighbourhood, proximity to parks and schools and so on? An urban setting today may seem ideal until you realize you need more space with a yard.
It's best to evaluate not just your needs for today but also what might occur down the road. - Research homebuying incentives from the federal government
Look into the First-Time Home Buyers' Tax Credit, also known as the Home Buyers' Amount. It's a non-refundable credit of $10,000 for first-time home buyers. It results in a tax rebate of up to $1,500.
The First Home Savings Account (FHSA) allows first-time buyers to accelerate their down payment savings. The FHSA combines aspects of an RRSP with those of a tax-free savings account. Deposits are tax-deductible, and once they're in your FHSA, they can be invested in several different ways. The earnings from those investments are tax-free.
You can deposit up to $8,000 per year in your FHSA for a total of $40,000. - Find a trustworthy team of professionals
It takes a village, as the saying goes. And that is true for homebuyers. By surrounding yourself with trusted professionals such as lawyers, appraisers, real estate agents and mortgage professionals, you can avoid unnecessary pitfalls or regrets that come without having the right team on your side.
If you're searching for a mortgage broker or agent, apply for a quote with RATESDOTCA. We'll set you up in three minutes with the mortgage provider offering you the lowest rate.
Mortgage lenders and brokers in Toronto
| Company name | Company type | Address | Phone number |
|---|---|---|---|
| Alterna Savings | Credit union | 1 The East Mall Crescent, Etobicoke, ON M9B 6G8 | (416) 622-8500 |
| BMO | Bank | 100 King St W., Toronto, ON M5X 1A3 | (416) 867-5050 |
| First Toronto Mortgage | Mortgage broker | 11-8 Pemberton Ave, North York ON M2M 4K8 | (416) 799-8035 |
| LowestRates.ca | Comparison site | 1910 Yonge St., Suite 401, Toronto, ON M4S 3B2 | 1 (855) 487-6911 |
| Meridian Credit Union | Credit union | 486 Parliament St., Toronto, ON M4X 1P2 | (416) 963-9839 |
| Mortgages.ca | Mortgage broker | 305-145 Front St. E., Toronto, ON M5A 1E1 | (647) 795-8700 |
| Progressive Mortgages | Mortgage broker | 310 Sheppard Ave W., North York, ON M2N 2L5 | (416) 916-4554 |
| RATESDOTCA | Comparison site | 225 King St W. Suite 1000, Toronto, ON M5V 3M2 | 1 (844) 726-0907 |
| RBC | Bank | 200 Bay St. Main Floor, Toronto, ON M5J 2J5 | (416) 974-3940 |
| TD Canada Trust | Bank | 55 King St. W., Toronto, ON M5K 1A2 | (416) 982-8768 |
Toronto mortgage rate forecast
The pain of interest rate increases by the Bank of Canada to curb inflation appears to be working. Inflation has gone below the 2% mark, now sitting at 1.6%.
The Bank of Canada started cutting rates earlier in 2024 as inflation began to abate and is expected to continue on this path. As of October 2024, the overnight rate sits at 3.75% – a reduction of 50 basis points (bps) from the preceding month. The overnight rate started out at 5.00% in 2024, meaning that the overall reduction has been 125 bps.
As rates come down, and inflation continues its decline, homebuyers can expect lenders to reduce rates and offer competitive mortgages. It might lead to a buyer’s market but also, sellers could flood the market with inventory hoping buyers are in a spending mood (which might raise prices).
Many economists feel the Bank of Canada will further cut rates this year and possibly into 2025.
Frequently asked questions about Toronto mortgage rates
Should I always pick the mortgage with the lowest rate?
Definitely not. Rates in Toronto are highly competitive, which means you’ll find providers advertising ultra-aggressive rates. Many of those rates have restrictions that could cost you more after closing. When two rates are close, use a mortgage calculator to compare the total interest cost. You’ll find that the difference is quite small and secondary to the contract terms.
Are some Toronto mortgage brokers better than others?
Absolutely. If you choose to use a broker, focus on those with experience because they’re more likely to make recommendations that can lower your total borrowing costs. Try to find a broker with at least two years in the business as a full-time agent and at least $10 million of closed mortgage volume. If you’re getting a prime mortgage (i.e., you have great credit, provable income and a reasonable debt load), look for a broker who doesn’t mind buying down the rate. A rate buydown is where the broker trades their commission to lower your interest costs.
Which lender has the best Toronto mortgage rate?
The “best” mortgage changes constantly as lenders adjust their rates. That means the best mortgage lender changes frequently as well. For this reason, focus less on the lender and more on the rate and contract terms. The lender’s brand name is almost irrelevant. For example, TD is a well-known lender, but its rates are often higher than a less-known lender like MCAP. But the latter has much more favourable terms (e.g., MCAP’s prepayment charges are lower and its mortgages are standard non-collateral charges, which can reduce switching costs at maturity).
Will mortgage rates continue to go down in Toronto 2025?
The trend so far in 2024 has been a cut in interest rates by the Bank of Canada leading to a drop in mortgage rates. Assuming inflation remains low, and the economy doesn’t fall into recession, mortgage rates may indeed continue to fall.
Why should I compare Toronto mortgage rates with RATESDOTCA?
Comparing rates on RATESDOTCA is an easy, fast and free way to make sure you are getting the cheapest possible mortgage you can. With few bits of information on your mortgage needs, RATESDOTCA will provide you with instant information on the cheapest rates from the top lenders in your area.
Are Toronto mortgage rates cheaper than other Ontario cities?
Because Toronto is a large city with diverse opportunities, it is an attractive place for people to move and buy homes. As a result, lenders have to compete for business, given the amount of choice out there. That competition will generally bring rates down compared to other areas where there is little competition.
Joel Kranc, Freelance writer
Joel Kranc is a freelance writer and content provider who has worked with RATESDOTCA since 2019. He holds an MA in political science from the University of Toronto and a film certificate from New York University.
He has been published in and worked for such companies as CNN, Rogers Media, Institutional Investor Magazine, The Globe and Mail, Infrastructure Investor, BenefitsPRO Magazine, Global Finance Magazine, With Intelligence, the CPP Investment Board, Hospitals of Ontario Pension Plan, and many more financial services and industry publications.
He is the author of "Retirement Planning in 8 Easy Steps," which, when released in 2015, was No. 11 on the Publisher's Weekly US Bestseller List for Business and Finance, beating out Mark Cuban's "How to Win at the Sport of Business."
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