TODAY'S
MORTGAGE RATES IN Ontario

Big banks like RBC and TD predict slow, steady rate drops throughout 2025. Below, we’ve outlined what they expect this year—and what that could mean for your next mortgage:

• Bank of Canada rate target (April 2025): 2.75%
• Expected range by year-end: 2.00%–3.00%
• Fixed rates: Holding around 4%
• Variable rates: Could dip below 4.3%

Locking in a decent rate today could still be a smart move, especially if you’re worried about future volatility. We think it's best to keep an eye on these forecasts as you weigh your options.

Trends to Watch for in 2025

Beyond rates, other trends shape how—and where—people buy. Here's what we’re keeping an eye on this year:

• Moderate Price Growth – Home values are expected to rise 3–6%. The GTA will likely see slower gains (2–4%) due to already high prices. Mid-sized cities like Barrie and London could see faster growth (5–7%) as more buyers look beyond the core.

• Policy Changes – Ontario is rolling out new programs to boost affordable housing, including incentives for secondary suites and rental units. It's a step in the right direction, though zoning and high building costs remain barriers.

• Emerging Markets – Buyers are increasingly eyeing mid-sized cities within 100km of Toronto or Ottawa—like Guelph, Kingston, and Peterborough—for their blend of value, lifestyle, and location.

We believe 2025 could open up real opportunities, especially if you're open to new areas or flexible timing.

Buying a home in Ontario takes strategy and a realistic sense of what you can afford. High prices and strict lending rules mean your numbers matter more than ever.

Not sure what kind of home fits your budget? See below for a breakdown of average home prices across Ontario and how much you’ll need to put down for each. Knowing typical down payments helps you set realistic savings goals—and spot hidden affordability gaps between regions.

We recommend running your numbers early and often. Use a mortgage affordability calculator to see how things change based on your income, down payment, and rate. That way, you're ready when the right property hits the market.

Factors That Affect Your Mortgage Rate in Ontario

Your mortgage rate isn’t set in stone. Lenders look at a few key factors when deciding your rate, and knowing what they’re looking for can help you get a better deal. Here’s what matters:

Mortgage Type: Fixed vs. Variable

Fixed-rate mortgages lock in your payment for a set term, usually at a slightly higher rate. Variable-rate mortgages often start lower but change with the prime rate. The best choice depends on your comfort with risk and the current rate environment.

Mortgage Insurance (Insured vs. Uninsured vs. Insurable)

Insured: Required if your down payment is under 20%. Surprisingly, this can work in your favour—insured mortgages often have lower rates.

Uninsured: For down payments over 20%. You skip the insurance cost, but the rate might be higher since the lender takes on more risk.

Insurable: Some 20%+ down payment mortgages still qualify for insurance (like high-ratio terms on standard homes). These tend to get better rates than fully uninsured options.

Down Payment Size

The more you put down, the less you borrow—and the lower your loan-to-value ratio. Lenders like that. It shows you’re less risky, which can get you a better deal.

Property Use

Buying a place to live in? You’ll usually get a better rate than if you’re buying a second home or rental property.

Amortization Period

Longer amortization (25–30 years) means smaller monthly payments but usually comes with slightly higher interest rates.

Credit Score

A score of 680 or higher opens more doors. You may still qualify if your score is lower, but you’ll likely face higher rates or stricter terms.

Lender Type

Big banks, credit unions, brokers, and alternative lenders offer different deals. For example, brokers can search across lenders, while credit unions might provide more flexible terms. It’s worth comparing.

Market Conditions

Rates rise when inflation rises and fall when the Bank of Canada wants to encourage borrowing. Watching these indicators can help you time your mortgage decisions strategically.

We think understanding these factors gives you a real advantage. When you know what lenders are looking for, you can structure your application for better results.

How to Select the Best Mortgage for Your Needs

The right mortgage isn’t just the lowest rate; it’s the one that fits your life. Here's how to make sure your mortgage works for you, now and later:

Know Your Numbers

Take stock of your monthly income, expenses, and debt to see what you may qualify for. Most lenders use a 39% gross debt service (GDS) ratio as a benchmark. Staying under that makes sure you're not overextending yourself.

Compare More Than Just Rates

A slightly higher rate with better terms could save you money in the long term. Use tools like EveryRate.ca to compare rates, fees, and perks in one place.

Understand Penalties and Break Fees

Some lenders charge steep penalties if you sell or refinance early. Ask potential lenders whether the fee is fixed or based on the interest rate differential (IRD). That detail can make a huge difference.

Look for Prepayment Privileges

Prepayment options let you make lump-sum payments or increase your monthly payments without penalty. Over time, that can save you thousands in interest.

Consider Your Payment Schedule

Switching to bi-weekly or weekly payments can help you sneak in an extra payment or two each year, helping you pay off your mortgage faster and save on interest.

Check for Portability

A portable mortgage lets you take your current mortgage to a new home without breaking the contract. This could save you time and money if a move is on the horizon.

Watch for Hidden Fees

Appraisal, legal, and setup fees often range from $1,500 to $3,000, depending on the lender and location. We think it’s wise to get a full breakdown of fees so nothing surprises you at closing.

Evaluate Extra Features

Some lenders bundle in home equity lines of credit (HELOCs), insurance, or cashback offers. These extras aren't always make-or-break, but they can sweeten the deal if they suit your goals.

We believe the right mortgage should support your life, not complicate it. A few smart comparisons upfront can save you stress (and cash).

The sticker price on a home is just the start. Closing costs and taxes can add thousands more. Let’s walk through some of the biggest fees buyers face in Ontario.

Land Transfer Tax

Land transfer tax (LTT) is a major closing cost that often surprises first-time buyers. We suggest calculating it early so you won’t be blindsided when it’s time to sign.

Provincial Land Transfer Tax Rates:

• 0.5% on the first $55,000
• 1.0% on $55,000–$250,000
• 1.5% on $250,000–$400,000
• 2.0% on $400,000–$2,000,000
• 2.5% on amounts over $2,000,000

For example, on a $500,000 home outside Toronto, you'd pay about $6,475 in LTT.

Toronto's Municipal Land Transfer Tax

Toronto has its own municipal LTT that mirrors the provincial tax, essentially doubling the cost. So on a $750,000 home in Toronto, you'd owe around $20,950. With rebates, a first-time buyer could reduce this to about $12,475 (more on this below).

How to Plan for Land Transfer Tax:

• Use a land transfer tax calculator early in your search
• Add LTT to your savings goal and closing budget
• Check your eligibility for rebates
• Consider buying outside Toronto if your budget is tight

Knowing your options and costs can make all the difference when it's time to make an offer.

Non-Resident Speculation Tax (NRST)

If you're not a Canadian citizen or permanent resident, you could also be subject to Ontario's 25% NRST. This is a major upfront cost worth considering.

Buying your first home in Ontario can feel out of reach, but several programs are designed to ease the upfront costs. Let’s take a look at them:

Land Transfer Tax Rebates

If you're a first-time buyer, you can get money back on the land transfer tax:

• Provincial rebate: Up to $4,000 on Ontario's land transfer tax
• Toronto rebate: An additional $4,475 for homes within city limits

Together, these can cut thousands off your total closing costs. This is especially important if you're buying in a higher-cost market like the GTA.

Regional Down Payment Assistance

Many municipalities offer down payment loans or grants. Some are forgivable if you stay in the home long enough. Here's what's available in 2025:

• Niagara Region: Up to $23,408 (forgivable loan)
• Simcoe County: Up to $50,000 in assistance
• Waterloo Region: 5% down payment loan
• Kingston & Frontenac County: Up to $44,000 (forgivable)
• Chatham-Kent: Grants up to $25,000
• Sudbury: Up to $20,000 per unit, or 50% of second-unit costs (max $50,000)

These programs often have income and residency criteria, so check with your local housing office before applying.

Federal Savings Programs

National programs you can combine with Ontario’s incentives include:

• First Home Savings Account (FHSA): Save up to $40,000 tax-free toward your first home

• Home Buyers' Plan (HBP): Withdraw up to $60,000 from your RRSP tax-free for a down payment

These incentives pair well with regional options, giving you multiple ways to reduce your upfront debt.

Ontario’s mortgage system has strong guardrails. Whether you go with a broker, credit union, or bank, licensed professionals have to follow clear rules that protect you. We highly suggest knowing the rules—it’s one more way to protect your peace of mind as you navigate your options.

Oversight and Protection

Two main regulators govern mortgage activity in Ontario:

• OSFI (Office of the Superintendent of Financial Institutions) oversees federally regulated lenders and sets key guidelines, such as the mortgage stress test.

• FSRA (Financial Services Regulatory Authority of Ontario) regulates provincial lenders, credit unions, and brokers, ensuring transparency, ethical practices, and consumer protection.

These rules help prevent risky lending and ensure you know what you're signing up for.

Mortgage Broker Licensing and Standards

Mortgage brokers in Ontario must be licensed by FSRA. That means completing training, passing exams, and following strict codes of conduct that put your interests first.

Want to verify a broker's credentials? FSRA maintains a public registry, so you can confirm you're working with a licensed professional.

Why These Regulations Matter

Ontario's regulatory framework is here to protect you, ensuring lenders stay fair and you’re never left in the dark. From the mortgage stress test to broker oversight, the goal is to keep the process fair, transparent, and in your best interest, especially in a market as competitive as Ontario's.

Is it worth refinancing if current mortgage rates are lower than the one I have now?

Possibly. Even a slight reduction, like half a percent, could save you hundreds each month. Check for penalties if you're breaking your mortgage to determine if switching makes financial sense. Start by comparing your current rate to the latest rates on EveryRate.ca.

How can I renew my mortgage at a lower rate in Ontario?

Start comparing rates four to six months before your term ends and monitor announcements from the Bank of Canada. If rate cuts are expected, it might pay to wait. Alternatively, locking in a fixed rate sooner could save you money if rates are climbing. Request quotes from banks, credit unions, and online lenders. Many lenders offer rate holds, so you're protected if rates increase and can still benefit if they drop.

How can I compare refinancing options across Ontario's banks, credit unions, and online lenders?

Use a tool like EveryRate.ca to see rates, fees, and perks in one view. This simplifies the decision-making process and helps you avoid surprises buried in the fine print.

How do I tap into my home's equity?

If your home’s gone up in value, you might be able to refinance for more than you expected. Check recent neighbourhood sales to estimate your home's worth and how much equity you can access. Keep in mind that a slowing market could affect these values.

Do Ontario's mortgage rates differ from other provinces?

Yes, they often do. Competitive lending in areas like the GTA can push rates slightly lower. At the same time, high property prices can sometimes drive rates higher. Rates vary based on local demand and individual lender strategies.

Which Ontario lenders offer the best deals?

It depends entirely on your needs. Credit unions excel in personalized service and flexible options, like skip-a-payment features. Smaller lenders often focus on niche needs, such as mortgages for self-employed borrowers. Big banks offer well-known brands and a broad range of products. EveryRate.ca compiles real-time offers to help you pick the best fit for your needs.

How does Ontario's average mortgage rate compare to last year?

As of April 2025, Ontario's average 5-year fixed rate hovers between 3.5–4.5%, a noticeable drop from over 5% the previous year. Variable rates have also declined, creating an ideal time to reevaluate your mortgage strategy to lower your payments.

What hidden fees or penalties should I watch out for when picking a mortgage?

Look out for early break fees, appraisal costs, and legal charges that could inflate your costs. At EveryRate.ca, we display these fees alongside rates, so you're never caught off guard by unexpected expenses.

How can I avoid "cashback" or "fake" rates that sound amazing but hide big catches?

Some lenders advertise extremely low rates with heavy penalties or high fees. Similarly, cashback offers seem appealing upfront but often cost more over time. We recommend double-checking the math. At EveryRate.ca, we filter out these options so the rates you see are straightforward and transparent.

Figuring out your mortgage in Ontario doesn't have to be overwhelming. Whether you're locking in for five years or staying flexible with a shorter term, your best move is an informed one.

You don’t need to be an expert to make a smart mortgage move; you need the right info. We built EveryRate.ca to make sure you have the real numbers—and real options—without the usual headaches.