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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 Ontario 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. Thought 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 remained uncertain).
Banks, credit unions, monoline lenders and other financial institutions compete to attract borrowers, and during competitive market conditions, lenders may offer better rates. Shopping around and comparing multiple lenders can often result in a better mortgage rate.
Mortgage rates, as mentioned, are set by the lending institutions, which in turn are influenced by the Bank of Canada's overnight target rate. However, other factors can affect your Ontario mortgage rate.
1. The amount you need to borrow
According to the Canadian Real Estate Association, the average price for a house in Ontario is around $700,000 – $900,000. In Ontario, you will need at least a 5% down payment for purchases of $500,000 or less and 10% for the portion of the price above $500,000 — up to $1.5 million. For homes priced above $1.5 million, 20% down payment is required.
2. Whether you choose a fixed or variable rate
The ongoing debate about taking out a fixed or variable mortgage will certainly affect your rate. Variable rates lock in your payment, but your interest rates fluctuate with the rate changes in the market. Fixed rates allow both principal and interest payments to remain constant and provide peace of mind for the borrower.
3. Your debt service ratios
Lenders will need to calculate your Gross Debt Service (GDS) Ratio. GDS is the percentage of your monthly income that covers your housing costs; it must not exceed 39%. Total Debt Service (TDS) is the percentage of your monthly household income that covers your housing costs and any other debts; it must not exceed 44%.
The formulas to find your debt service ratios, according to the Canada Mortgage and Housing Corporation (CMHC), are as follows:
Gross debt service formula:
(Principal + interest + taxes + heat)/Gross annual income
Total debt service ratio formula:
(Principal + interest + taxes + heat + other debt obligations)/Gross annual income
Of course, increasing the down payment as high as 20% would eliminate the CMHC insurance, and monthly payments would decrease.
4. Lump sum payments
Another factor that affects your mortgage rate is lump sum payments. The faster you pay down your mortgage, the more you save on interest rate charges. It also shortens the length of time required to pay off your debt.
A lump sum payment is a one-time payment you make towards your mortgage outside your regular payment schedule. Some banks may allow payments of up to 15% of your original borrowed amount per year without triggering a prepayment charge. For example, if you have a mortgage of $400,000, you can make a lump sum payment of $60,000 per year on top of your other payments. This can be done at once or spread out over the course of the year.
5. Credit score
Also, your credit score can affect your rate positively or negatively, depending on your history. A good credit rating shows the lender you’re a “good risk” and will likely pay back the loan, leading to a better interest rate than someone with a lower credit score. The CMHC requires the minimum credit score on insured mortgages to be 600.
6. Property usage
What if you are buying an income property and you don’t plan to live there? That will most certainly affect your interest rate, which tends to be higher as lenders perceive this as a riskier loan.
If you are self-employed and work from home, mortgage rates can be higher but aren’t always. Building up capital and the viability of your business will also play a role in finding the best mortgage rates in Ontario.
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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 |
|---|---|---|
| 08/25 | 4.61% | 4.39% |
| 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% |
Last Updated: August 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 4.64%. That’s 24 bps above the 5-year variable rate, which stands at 4.40%.
| Month | Fixed | Variable |
|---|---|---|
| 08/25 | 4.54% | 4.85% |
| 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% |
Last Updated: August 1, 2026
New mortgage loan values have been trending upward throughout 2025, reaching the average of $441,394 in Ontario and $360,597 in Canada by the end of Q4 2025. This is still well below the peaks experienced in Q2 2022, when average values reached $375,987 in Ontario and $371,063 in Canada.
Here are all the average new mortgages loan values in Ontario 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 |
| Ontario | $466,931 | $475,987 | $462,701 | $418,808 | $406,427 | $405,753 | $434,005 | $426,021 | $421,795 | $427,078 | $440,052 | $432,237 | $441,074 | $438,188 | $445,693 | $441,394 |
The amount of money you borrow for your mortgage will have an effect on future costs. Why? Processing a mortgage comes with costs lenders money, meaning fees are prevalent even at low mortgage amounts. For example, it can cost as much as $1,000 to process, underwrite and fund a home loan.
Let’s say a lender charges a 0.5% fee, also known as an origination fee. On a larger mortgage of $400,000, that fee comes to $2,000. On a low mortgage amount, say $40,000, that fee would equal $200. If processing fees are $1,000, the lender would lose money and therefore have to raise the fee on “low loan amounts” to not only cover expenses but make a small profit.
Large loan amounts have a risk factor attached to them. Lenders stand to lose more if they lend out large amounts to borrowers who can’t pay their debts. As a result, some lenders often have stricter underwriting guidelines that require a larger downpayment and higher credit score to secure the loan.
Scheduled monthly payments have been trending downward throughout 2025, reaching the average of $2,402 in Ontario by the end of Q4 2025. This is well below the peaks experienced in Q4 2023, when average scheduled monthly payments reached $2,770 in Ontario.
| 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| $1,966 | $2,153 | $2,392 | $2,449 | $2,494 | $2,444 | $2,634 | $2,770 | $2,751 | $2,646 | $2,664 | $2,524 | $2,526 | $2,452 | $2,472 | $2,402 |
Closing costs are the one-time fees buyers pay upon purchasing property in Ontario. Generally, closing costs include:
Land transfer tax calculations for a $500,000 property in Ontario without a rebate are:
It’s important to have a good credit score. Canada Mortgage and Housing Corporation says the credit score requirement on insured mortgages should be 680.
Other factors you should have in order can include:
Paying down debt: This can do a few things. Paying debt frees up resources to put toward your downpayment or mortgage. It also indicates to lenders that you are a “good risk” and have the ability (and desire) to pay loans in a responsible manner.
Calculating assets and liabilities: If knowledge is power, then understanding your economic situation will help you obtain the mortgage you need. By having a complete picture of assets and liabilities, you will be better prepared to provide the information lenders require to decide on your mortgage application. This can be done with an accountant, if you have one, or on your own.
Having a consistent employment history: Lenders want to see elements of your financial life that reduce risk. Being employed consistently indicates your ability to be financially responsible. This will be an important factor in indicating to lenders that you can pay your debts with little to no risk of default.
Having a large downpayment: The more you save towards the purchase of a house, the better you will be in the long run in terms of debt burdens. However, lenders also see this as a lower-risk proposition. The less you need to borrow, the quicker they can get their money back if you default on the loan. Monthly costs are reduced for you, and you look more attractive to lenders who are all about reducing their own risk.
Having enough income: Most important is proving you can carry the mortgage, usually calculated by your broker or mortgage agent using a debt service ratio analysis.
Unlike a bank, a mortgage broker can only offer mortgages from their line of products. They can access many lenders and help you choose the right product for your circumstance. More good news is that mortgage brokers are free to use and are paid by the lender while also having access to a variety of lender interest rates. In a similar way, comparison sites like LowestRates.ca can help you get rates from different mortgage providers without charging a fee.
Mortgage default insurance is a form of protection for the lender, not the buyer. The government of Canada requires mortgage default insurance to be paid by the borrower if they put less than 20% down on a home.
Default mortgage insurance is only available for homes priced under $1 million. To acquire it, you must meet the bank’s eligibility requirements as well as the underwriting standards of your mortgage insurer.
A mortgage term is the length of time the mortgage agreement at your agreed interest rate is in effect. An amortization period is simply the length of time it takes for you to repay your loan.
An open mortgage allows you to pay back the loan in full at any time. A closed mortgage allows limited lump-sum prepayments and includes penalties if you pay the loan ahead of schedule.
Which one to choose is a matter of preference. A close mortgage will generally have lower interest rates because of the limitations placed on the payment. But you may want to lift the burden of mortgage payments if, at some time, you feel you will be able to pay it back in full.
A mortgage rate hold or rate lock allows buyers a guaranteed interest rate on their mortgage for a set period (usually 30 to 60 days but up to a maximum of 120 days). It is usually used when a buyer knows they will be purchasing or refinancing their home in the near future.
Prepayment options allow you to repay your mortgage sooner than the original payment schedule. There are two ways to do this – increase your mortgage payments or pay a lump sum.
Applying for a mortgage online can be as safe and effective as doing it in person. In fact, online mortgage vendors often have more attractive rates due to the competitive nature of the business. It is wise, however, to be wary of the risk of fraud, online scams and illegal business practices when applying online. The Financial Services Regulatory Authority of Ontario has more information about how to distinguish who is — and who is not — a reputable mortgage lender.
A few factors will determine if you can get the lowest rate, including your credit score, employment record, and downpayment. Having that data and comparison shopping on sites like LowestRates.ca will ensure you are getting the lowest rates available.
LowestRates.ca works with top banks and brokers across Canada to bring you the most competitive up-to-date rates available. First, our partners obtain the best deals and offers they can find, then we let them compete for your business. All you have to do is answer a few questions, and in minutes you’ll be provided with today’s mortgage interest rates for Ontario. 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.
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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