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Compare mortgage rates in Ontario.

Looking for Ontario’s cheapest mortgage rates? brings Ontario homebuyers the lowest mortgage rates from the top brokers and banks in the province. Our service is free to use and there’s no obligation of any kind to go with the rate we offer. In just a few minutes, you can compare Ontario’s cheapest mortgage rates on any given day.

Below, we’ve provided you with information and data about the housing market in major Ontario cities that might assist in your search for the best mortgage rate.

Lower mortgage rates = bigger savings.

We crunched the numbers on hundreds of thousands of 5-year fixed mortgages Ontario residents have inquired about on our site.

The results say it all: 5-year fixed mortgage rates found on now average just above 2.5%, while bank-posted 5-year fixed mortgage rates average well over 5%.

On a $400,000 mortgage, that seemingly tiny difference in rates adds up to more than $170,000 in savings over the duration of your mortgage loan.

On average,’s 5-year fixed mortgage rates are about two percentage points lower than the bank rate. On a $400,000 mortgage with a 25-year amortization period and a down payment of 20%, this would add up to savings of:

$570 per month
$6,840 per year
$171,000 in a lifetime

5-year fixed rates on vs. the bank rate.

MonthAverage 5-year fixed rateAverage bank 5-year fixed rate

Source: Bank of Canada

Variable or fixed mortgage rates: which one is best?

When hunting for the best mortgage rates in Ontario, it’s important to compare different offers.

One question homebuyers continue to face: how do the current best variable rates compare to the best fixed rates?

To find the answer, we compared the 5-year fixed mortgage rates and 5-year variable mortgage rates that Ontarians have applied for on our site.

We discovered that whether you go with a fixed or variable rate on, you’re getting a great deal. Our 5-year fixed rates and our 5-year variable rates have been virtually neck in neck for the past year. Keep reading to learn more about the difference between fixed and variable mortgage rates.

As of February 2020, our average 5-year fixed rate is actually a fraction of a percentage point lower than our average 5-year variable rate. On a $400,000 mortgage with a 25-year amortization period and a down payment of 20%, selecting a fixed rate would add up to savings of:

$12 per month
$144 per year
$3,600 in a lifetime

Our 5-year fixed mortgage rate vs our 5-year variable rate in Ontario

MonthOur average 5-year fixed rateOur average 5-year variable rate

Focus On

Ontario’s housing market.

Ontario is the most active housing market in the country with 37% of all Canadian home sales taking place here in 2019. The price of a single-family home across several Ontario regions has exploded. The province’s most expensive housing market is currently the Oakville-Milton region, where the benchmark home price was over $1 million in January 2020. This region was closely followed by the Greater Toronto area, where the average price of a single family home was just over $900,000.

Single-detached family home prices by Ontario region

 Greater Toronto AreaHamilton-Burlington areaOakville-Milton regionBarrie regionOttawa

Source: Canadian Real Estate Association MLS® HPI Tool

Single family homes aren’t the only form of housing that has seen rapid and consistent increases over the past few years. The value of apartment dwellings and townhouses have also risen.

Apartment prices by Ontario region

 Greater Toronto AreaHamilton-Burlington areaOakville-Milton regionBarrie regionOttawa

Source: Canadian Real Estate Association MLS® HPI Tool

Townhouse prices by Ontario region

 Greater Toronto AreaHamilton-Burlington areaOakville-Milton regionBarrie regionOttawa

Source: Canadian Real Estate Association MLS® HPI Tool

Your Ontario mortgage questions, answered.

Looking for more information about Ontario mortgages? Check out our Help Centre.

What’s the difference between a mortgage term and an amortization period?

Mortgage term: The mortgage term is the amount of time that you commit to your mortgage rate, lender and the contracts terms and conditions. At the end of the term, you’ll renew your mortgage contract for the remaining principal at a new rate. The process repeats until you’ve paid off your mortgage. A mortgage term can vary in length, from six months to 10 years, with the most common term in Canada being five years.

Amortization period: The amortization period is the amount of time it will take you to pay off your entire mortgage. In Canada, the maximum amortization period is 35 years. But, if your down payment was less than 20% and you were required to purchase mortgage insurance from the Canadian Mortgage Housing Corporation, then your maximum amortization period is 25 years.

Variable or fixed: which is more popular?

What’s the difference between a fixed and variable mortgage rate? Essentially, a fixed rate means your interest rate doesn’t change for the duration of your mortgage term. A variable rate means that your rate is not fixed. Instead, the rate will be adjusted based on market conditions.

Up until 2019, the majority of users have taken 5-year variable rates. We discovered this after we analyzed data from hundreds of thousands of borrowers who have shopped for a mortgage on our site. That’s likely because 5-year variable rates have been significantly lower than 5-year fixed rates during that time frame, however, this trend appears to be reversing itself, as throughout 2019, fixed rates were consistently lower than variable rates.

What factors determine my Ontario mortgage rate?

Your down payment: The size of your down payment is the primary contributor to the size of your mortgage loan. It also factors significantly into determining your mortgage rate. The size of your down payment is a signal to lenders about how capable you are of paying off your mortgage. When it comes to down payments, the more you can put down, the better.

Your debt service ratios: Ontario lenders look at a number of other factors when calculating your mortgage rates. These are known as debt ratios and can be grouped into two categories:

  • Gross Debt Service Ratio (GDS): To calculate your GDS, lenders determine how much of your paycheque will go towards housing. This includes your mortgage, property taxes, heating costs and 50% of your condo fees (if applicable). The lender then divides this by your gross annual income. If the result is greater than 35%, your lender may doubt your ability to handle your monthly housing costs.
  • Total Debt Service Ratio: Your TDS ratio is everything that comprises your GDS ratio plus any other monthly payments you have to make. These could include things like credit card debt, loan payments and car payments. The total is divided by your gross annual income. If the resulting percentage is less than 42%, your lender will be confident that you earn enough to make all your monthly payments.

How can I get a cheaper mortgage rate in Ontario?

Shop around: While it can be tempting to take the first offer you receive, it’s important to shop around to really get a sense of the mortgage market. You’d think the bank you’ve been with for 10 years would give you a great rate for being a loyal customer, but the opposite is sometimes true: they’re not worried about you leaving any time soon, so they don’t feel pressure to keep your business.

Reduce your other debts: Ontario lenders will often take other, non-household related debts into account when determining whether you’ll be able to pay off your mortgage. One way to demonstrate that you’re a safe bet (and possibly secure a lower rate) is to lower your credit card and loan debt. These debts contribute to your total debt service ratio, as we explained above.

Use a broker: A mortgage broker knows the ins and outs of the Ontario mortgage market better than the average bank employee. Plus, they’re not tied to one institution; they can show you rates from a bunch of different lenders.. This also gives them a leg up when negotiating your mortgage contract with a lender. We’ll connect you to one when you compare quotes on our site.

How much does getting the best mortgage rate matter?

Getting the best mortgage rates is one great way to save money on your mortgage, but 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.

What if I want to pay off my mortgage early? Or break it?

The answer to this question depends on the terms of your mortgage. In addition to securing a cheap mortgage rate, there are other factors it might be worth it to discuss to maximize your savings in the long run.

  • Prepayment privileges: Before signing on the dotted line, prepayment privileges are something you should discuss with your lender. Not all banks and brokers offer the same prepayment terms, however, so it’s important to raise the issue.
  • Penalties: If, for whatever reason, you need to break your mortgage, you may be required to pay thousands of dollars in penalties. While you may wind up with a better rate if you choose to go with a different lender, it’s important to look at the fine print to ensure that it won’t cost you more than you’ll gain.
  • Portability: One way to avoid these penalties is to negotiate a portable mortgage. This means that if you move, you can transfer your mortgage to a new home and combine it with an additional mortgage loan.

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