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Check out today's best mortgage rates in Canada by type and term.
| Insured ? | 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. | 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. | Uninsured ? | Bank Rate ? | ||
|---|---|---|---|---|---|---|
Insured 4.64% | 80% LTV 4.19% | 65% LTV 4.19% | Uninsured 4.99% | 4.99% | ||
Insured 3.99% | 80% LTV 3.89% | 65% LTV 3.89% | Uninsured 4.44% | 4.53% | ||
Insured 3.69% | 80% LTV 3.79% | 65% LTV 3.79% | Uninsured 3.9% | 4.39% | ||
Insured 3.84% | 80% LTV 3.99% | 65% LTV 3.99% | Uninsured 4.39% | 4.44% | ||
Insured 3.69% | 80% LTV 3.55% | 65% LTV 3.55% | Uninsured 3.69% | 4.19% | ||
Insured 4.19% | 80% LTV 4.24% | 65% LTV 4.24% | Uninsured 4.89% | 5% | ||
Insured 5.04% | 80% LTV 4.34% | 65% LTV 4.34% | Uninsured 5.24% | 6.09% | ||
Insured 3.9% | 80% LTV 3.95% | 65% LTV 3.9% | Uninsured 3.9% | 5.95% | ||
Insured 3.45% | 80% LTV 3.45% | 65% LTV 3.45% | Uninsured 3.5% | 4.24% | ||
Insured N/A | 80% LTV N/A | 65% LTV N/A | Uninsured N/A | N/A | ||
Insured 5.45% | 80% LTV 5.45% | 65% LTV 5.45% | Uninsured 5.5% | N/A |
There are three main drivers behind mortgage rates in Kitchener-Waterloo and Canada at large:
The Bank of Canada influences mortgage rates through its policy rate. The Bank’s objective is to keep inflation in the target range of 1% to 3% and preserve the value of the Canadian dollar. It achieves this by setting the target overnight rate, also known as the policy rate.
As of today, the policy rate is 2.25%. The central bank uses the target rate to influence how the banks set their own rates and acts as a barometer for the rate at which banks borrow and lend among themselves.
The higher the inflation, particularly if it’s above 3%, the higher the likelihood of a rate hike. Though inflation does not directly affect mortgage rates, the Bank tends to raise rates to cool down economic activity and force homebuyers to retreat from the market. It’s worth noting that government bond yields, which influence fixed rates, are affected by inflation as well, in addition to factors like oil prices, geopolitical tensions and broader economic conditions (which currently remain uncertain).
Banks, credit unions, monoline lenders and other financial institutions compete to attract borrowers across Kitchener-Waterloo and beyond. During competitive market conditions, lenders may offer better rates. Shopping around and comparing multiple lenders — including local Ontario credit unions like Meridian Credit Union and Waterloo Region-based Kindred Credit Union — can often result in a better mortgage rate.
The average mortgage rate for a home in Kitchener-Waterloo depends on how much cash you can afford to put down up front, your monthly debt obligations, credit history and how much income you earn. Here are a few factors lenders consider when deciding whether or not to approve your mortgage application, and what interest rate they’ll offer.
1. Down payment
Your down payment amount is the biggest contributor to the size of your Kitchener-Waterloo mortgage loan. Home buyers are required to have a down payment of at least 5% of the home’s purchase price, depending on how much the house costs. Here are the rules according to the federal government.
2. Debt service ratios
Since mortgage payments will add to any existing debt, lenders want to know your monthly debt payment obligations. There are two types of ratios lenders use to measure household debt.
3. Credit score
Your credit score ranges from 300 to 900, and is a way for lenders to judge how reliable you are when it comes to paying your bills on time. Your borrowing history may include credit cards, line of payment, utilities, cell phone, internet and/or cable bills.
A higher credit score signals to lenders that you’re a responsible borrower, so you’ll likely be able to secure the lowest mortgage interest rate for your Kitchener-Waterloo home. If you’re required to buy mortgage insurance from the Canada Mortgage and Housing Corporation (CMHC) because your down payment is less than 20% of the home’s purchase price, the CMHC requires a credit score of at least 600.
4. Employment and income
Lenders will look at how much income you earn from sources such as a salaried job, rental income or investments, the type of employment (full-time, casual, temporary or seasonal) and the length of employment.
If you’re self-employed, you’ll need to provide tax returns from the last three years, copies of the articles of incorporation for your business, business or GST licence, and your personal and business credit scores. To prove your income, you’ll also need to provide supporting documents such as an income statement, cash flow statement and balance sheet.
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How do these mortgage types differ? Conventional (low-ratio) mortgage requires a down payment of 20% or more, with no mandatory insurance, while a high-ratio mortgage requires a down payment of below 20%, plus mandatory insurance.
Which mortgage type offers cheaper rates? As of August 2026, the average conventional 5-year fixed rate is 4.47%. That’s 33 bps above the average high-ratio 5-year fixed rate, which stands at 4.14%.
| Date | Average Conventional Rate | Average High Ratio Rate |
|---|---|---|
| 09/25 | 4.50% | 4.42% |
| 10/25 | 4.46% | 4.36% |
| 11/25 | 4.35% | 4.31% |
| 12/25 | 4.44% | 4.32% |
| 01/26 | 4.49% | 4.49% |
| 02/26 | 4.47% | 4.43% |
| 03/26 | 4.27% | 4.20% |
| 04/26 | 4.24% | 4.23% |
| 05/26 | 4.38% | 4.22% |
| 06/26 | 4.48% | 4.24% |
| 07/26 | 4.47% | 4.14% |
| 08/26 | 4.49% | 4.09% |
Last Updated: September 1, 2026
How do these mortgage rates differ? A fixed rate mortgage is a rate fixed over a period of time. Interest rates and the mortgage payments remain the same (and consistent) over that mortgage term. A variable rate mortgage is different. While the mortgage payment remains constant, the interest rate payments fluctuate with the prime interest rate.
Which rate is cheaper? As of August 2026, the 5-year fixed rate is 4.34%. That’s 41 bps abow the 5-year variable rate, which stands at 3.93%.
| Month | Fixed | Variable |
|---|---|---|
| 09/25 | 4.60% | 4.64% |
| 10/25 | 4.62% | 4.51% |
| 11/25 | 4.64% | 4.40% |
| 12/25 | 4.64% | 4.41% |
| 01/26 | 4.71% | 4.44% |
| 02/26 | 4.64% | 4.43% |
| 03/26 | 4.33% | 4.38% |
| 04/26 | 4.38% | 4.06% |
| 05/26 | 4.41% | 4.05% |
| 06/26 | 4.45% | 4.01% |
| 07/26 | 4.34% | 3.93% |
| 08/26 | 4.30% | 3.89% |
Last Updated: September 1, 2026
New mortgage loan values have been trending upward throughout 2025, reaching the average of $419,177 in Kitchener-Waterloo and $360,597 in Canada by the end of Q4 2025.
Here are all the average new mortgages loan values in Kitchener-Waterloo from 2022 to 2025:
| Q1 – 2022 | Q2 – 2022 | Q3 – 2022 | Q4 – 2022 | Q1 – 2023 | Q2 – 2023 | Q3 – 2023 | Q4 – 2023 | Q1 – 2024 | Q2 – 2024 | Q3 – 2024 | Q4 – 2024 | Q1 – 2025 | Q2 – 2025 | Q3 – 2025 | Q4 – 2025 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Canada | $368,936 | $371,063 | $363,654 | $325,612 | $320,298 | $314,540 | $338,522 | $327,899 | $323,537 | $332,825 | $349,364 | $343,271 | $356,831 | $350,281 | $360,986 | $360,597 |
| Kitchener-Cambridge-Waterloo | $440,778 | $451,521 | $451,467 | $389,427 | $368,534 | $377,861 | $404,809 | $408,002 | $392,215 | $402,895 | $429,675 | $419,981 | $415,410 | $406,070 | $421,881 | $419,177 |
Scheduled monthly payments have been trending downward throughout 2025, reaching the average of $2,332 in Kitchener-Waterloo by the end of Q4 2025.
| Q1 – 2022 | Q2 – 2022 | Q3 – 2022 | Q4 – 2022 | Q1 – 2023 | Q2 – 2023 | Q3 – 2023 | Q4 – 2023 | Q1 – 2024 | Q2 – 2024 | Q3 – 2024 | Q4 – 2024 | Q1 – 2025 | Q2 – 2025 | Q3 – 2025 | Q4 – 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| $1,828 | $2,040 | $2,311 | $2,265 | $2,237 | $2,246 | $2,420 | $2,585 | $2,493 | $2,442 | $2,551 | $2,414 | $2,356 | $2,239 | $2,422 | $2,332 |
Closing costs are the one-time fees buyers pay upon purchasing property in Kitchener-Waterloo. Generally, closing costs include:
Land transfer tax calculations for a $500,000 property in Kitchener-Waterloo without a rebate are:
A mortgage requires you to make regular payments for a certain period of time — but for how long? That’s where the mortgage term and amortization period come in.
When it comes to paying off your mortgage, there are two types of payment structures to choose from.
If you’re house hunting in Ontario, securing a low Kitchener-Waterloo mortgage rate is one great way to save money on your mortgage. However, it’s one of many things you can do to increase the overall affordability of your mortgage. Some of these features might include prepayment privileges and portability.
LowestRates.ca works with top banks and brokers to bring you the best mortgage rates from lenders in Canada, including Kitchener-Waterloo. All you have to do is answer a few questions, and in minutes you’ll be provided with today’s mortgage rates for Kitchener-Waterloo. There’s no obligation, but you can choose to speak with our broker partner to secure your best rate and see if you're eligible for more savings.
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The better informed you are, the more likely you'll negotiate a better deal for yourself. And, really, that’s what we care about the most.
Taras Trofimov
About the Author
Taras is the Content Manager for LowestRates.ca. He has produced thought leadership content for organizations like Constellation Software, Facebook and Yellow Pages as well as outlets like The Globe and Mail, Autoblog and MSN Autos.
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