Trending Mortgage Options
Lowest Rates
Housing Market
Current Ontario
Average Home Price
Volume
Loans Processed this Month
Flexibility Index
High inventory and softer prices position Ontario as a buyers' market.
Market Share
Ontario
MARKET
INSIGHTS
No need to call multiple brokers or fill out countless applications.
We aggregated everything for you in one place.
Rate Forecast
The 8-month outlook shows 5-year fixed rates around 3.85%, with potential dips before returning to stabilize near this level.
Rate Movement
Two Bank of Canada rate cuts totaling 0.50% are anticipated in the next 12 months, likely providing relief for borrowers and supporting lower fixed-rate mortgages.
Housing Market
Ontario's provincial average home price sat around $852,036 in June 2025, down a few percentage points year‑over‑year; July data aren't yet published.
Forecasted Rate Cuts
Q3 2025
1 CUT
Projected
Q4 2025
1 CUT
Projected
Q1 2026
0 CUT
Projected
Q2 2026
0 CUT
Projected
Next BOC rate cut expected in Q3 2025, with a current market probability of over 70%. Only rate cuts with a likelihood of 70% or higher are displayed.
Fixed Rates
Easing bond yields are nudging fixed mortgage rates down.
Variable Rates
Prime discounts continue to widen, signaling relief for variable-rate borrowers.
Top 20Top 20
OntarioMORTGAGE RATES
Customize your rate research playing field
Best 5-Year Fixed Mortgage Rates in Ontario
Stability and predictability
If you value consistent monthly payments and want to protect yourself from market fluctuations, a 5-year fixed mortgage rate is popular among Ontario homeowners. It provides long-term peace of mind, making budgeting and planning your finances more straightforward, even if interest rates shift unexpectedly. Insured mortgages, which require mortgage default insurance, often offer slightly lower rates due to reduced risk for lenders. Whether you're a first-time homebuyer or a seasoned homeowner, locking in a fixed rate can provide financial security for years.
Best 3-Year Fixed Mortgage Rates in Ontario
A blend of flexibility and security
A 3-year fixed mortgage keeps your payments stable for three years. Afterward, you can reassess and decide what’s next. It’s a strong choice if your life might change soon—whether that’s a job move, a home sale, or a shift in the market. We've seen more homebuyers opting for 3-year terms lately thanks to their mix of stability and flexibility.
Top Variable Rate Mortgages in Ontario
Maximum financial flexibility
Variable-rate mortgages are linked to the prime rate, which means your payments can go up or down depending on the economy. Variable rates change more, but they often cost less over time. If your budget can handle some changes, a variable rate can be a great choice to help you save some money.
2025 Mortgage Rate Forecast in Ontario
Ontario's mortgage market is showing signs of recovery in 2025. After a challenging period of rising rates, borrowers are now seeing more favourable conditions as the Bank of Canada begins to ease monetary policy.
Current Rate Environment
As of early 2025, Ontario borrowers can access:
- 5-year fixed rates: Starting from 4.14% for well-qualified borrowers
- Variable rates: From 4.35% (prime minus 0.60%)
- 3-year fixed rates: From 4.24%
What's Driving Rate Changes?
Several factors are influencing Ontario's mortgage rates:
- Bank of Canada Policy: The overnight rate is expected to decline from 2.75% to around 2.25% by year-end
- Bond Market Trends: 5-year government bond yields have stabilized, allowing lenders to offer more competitive fixed rates
- Economic Conditions: Slower inflation and moderated growth are creating a more favourable borrowing environment
2025 Rate Outlook
Analysts expect continued improvement in mortgage affordability throughout 2025:
- Fixed rates: Could decline by an additional 0.25-0.50% by year-end
- Variable rates: Should follow Bank of Canada rate cuts, potentially reaching 3.85% by December
- Overall trend: More borrower-friendly conditions expected to continue
Ontario Housing Market Trends
Ontario's housing market continues to be one of Canada's most dynamic, with significant regional variations and evolving market conditions.
Current Market Conditions
As of early 2025, Ontario's housing market shows:
- Sales activity: Moderate recovery from 2023-2024 slowdown
- Inventory levels: Balanced in most regions, tight in high-demand areas
- Price trends: Stable to modest growth in most markets
Regional Variations
Ontario's diverse regions show different market dynamics:
- Greater Toronto Area (GTA): Continued demand, especially for family homes
- Ottawa: Stable market with government employment stability
- Hamilton-Burlington: Strong demand from GTA commuters
- Kitchener-Waterloo: Tech sector growth driving housing demand
- London: Affordable alternative to GTA with growing economy
2025 Market Forecast
Analysts project continued stability with moderate growth:
- Price appreciation: 2-4% expected across most regions
- Sales volume: 8-12% increase from 2024 levels
- Market balance: Moving toward more balanced conditions
Down Payment Requirements in Ontario
Ontario follows federal down payment requirements, with some additional considerations for high-value properties.
Standard Requirements
- First $500,000: 5% down payment required
- $500,000 to $999,999: 10% down payment required
- $1,000,000 and above: 20% down payment required
Regional Examples
Based on current average prices in key Ontario markets:
| Region | Avg. Home Price | 5% Down | 10% Down | 20% Down |
|---|---|---|---|---|
| Toronto | $1,200,000 | $25,000 | $70,000 | $240,000 |
| Ottawa | $750,000 | $25,000 | $50,000 | $150,000 |
| Hamilton | $850,000 | $25,000 | $60,000 | $170,000 |
| Kitchener | $800,000 | $25,000 | $55,000 | $160,000 |
| London | $650,000 | $25,000 | $40,000 | $130,000 |
Mortgage Insurance
For down payments below 20%, mortgage default insurance is required:
- CMHC: 2.8% to 4.0% of mortgage amount
- Sagen: 2.4% to 3.6% of mortgage amount
- Canada Guaranty: 2.8% to 4.0% of mortgage amount
First-Time Home Buyer Programs in Ontario
Ontario offers several programs to help first-time buyers enter the housing market.
Provincial Programs
- Ontario Home Ownership Savings Plan (OHOSP): Tax-free savings account for home purchases
- Land Transfer Tax Rebate: Up to $4,000 rebate for first-time buyers
- First-Time Home Buyer Incentive: Shared equity program (federal)
Municipal Programs
Several Ontario cities offer additional support:
- Toronto: Toronto Home Ownership Program (THOP)
- Ottawa: Ottawa Home Ownership Program
- Hamilton: Hamilton Home Ownership Program
Federal Programs
- Home Buyers' Plan: Withdraw up to $35,000 from RRSPs tax-free
- First-Time Home Buyer Tax Credit: Up to $1,500 in tax savings
- Tax-Free First Home Savings Account: Save up to $40,000 tax-free
Additional Costs When Buying a Home in Ontario
Beyond your down payment, budget for these additional costs:
Land Transfer Tax
Ontario has one of Canada's highest land transfer taxes:
- First $55,000: 0.5%
- $55,000 to $250,000: 1.0%
- $250,000 to $400,000: 1.5%
- $400,000 to $2,000,000: 2.0%
- Over $2,000,000: 2.5%
Other Closing Costs
- Legal fees: $1,500–$3,000
- Title insurance: $200–$500
- Home inspection: $400–$700
- Appraisal: $300–$600 (if required)
- Property taxes: Pro-rated for the year
- Home insurance: First year premium
Total Cost Estimate
Budget approximately 1.5% to 4% of your home's purchase price for closing costs, depending on the property value and location.
Mortgage Regulations in Ontario
Ontario's mortgage industry is regulated by both federal and provincial authorities.
Federal Regulations
- Stress test: Must qualify at 5.25% or your rate + 2%, whichever is higher
- Maximum amortization: 25 years for uninsured mortgages, 30 years for insured
- Down payment minimums: 5% for first $500,000, 10% for $500,000–$999,999, 20% for $1M+
Provincial Oversight
- Financial Services Regulatory Authority (FSRA): Regulates mortgage brokers and administrators
- Real Estate Council of Ontario (RECO): Oversees real estate professionals
- Consumer protection: Strong provincial laws against predatory lending
Key Consumer Protections
- Cooling-off period: 10-day right to cancel mortgage agreements
- Disclosure requirements: Clear terms and conditions must be provided
- Complaint resolution: FSRA handles consumer complaints