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3.99%

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The best current mortgage rates in Canada

Check out today's best mortgage rates in Canada by type and term.

Rates are based on an average mortgage of $300,000
 Insured ?

The rates in this column apply to borrowers who have purchased mortgage default insurance. This is required when you purchase a home with less than a 20% down payment. The home must be owner-occupied and the amortization must be 25 years or less.

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 ?

The rates in this column apply to purchases over $1 million, refinances and amortizations over 25 years. More info on the differences between insured and uninsured rates.

Bank Rate ?

Bank Rate is the mortgage interest rate posted by the big banks in Canada.

 
1-year fixed rate
Insured
4.64%
80% LTV
4.19%
65% LTV
4.19%
Uninsured
4.99%		4.99%
 
2-year fixed rate
Insured
3.99%
80% LTV
3.89%
65% LTV
3.89%
Uninsured
4.44%		4.53%
 
3-year fixed rate
Insured
3.69%
80% LTV
3.79%
65% LTV
3.79%
Uninsured
3.9%		4.39%
 
4-year fixed rate
Insured
3.84%
80% LTV
3.99%
65% LTV
3.99%
Uninsured
4.39%		4.44%
 
5-year fixed rate
Insured
3.69%
80% LTV
3.55%
65% LTV
3.55%
Uninsured
3.69%		4.19%
 
7-year fixed rate
Insured
4.19%
80% LTV
4.24%
65% LTV
4.24%
Uninsured
4.89%		5%
 
10-year fixed rate
Insured
5.04%
80% LTV
4.34%
65% LTV
4.34%
Uninsured
5.24%		6.09%
 
3-year variable rate
Insured
3.9%
80% LTV
3.95%
65% LTV
3.9%
Uninsured
3.9%		5.95%
 
5-year variable rate
Insured
3.45%
80% LTV
3.45%
65% LTV
3.45%
Uninsured
3.5%		4.24%
 
HELOC rate
Insured
N/A
80% LTV
N/A
65% LTV
N/A
Uninsured
N/A		N/A
 
Stress test
Insured
5.45%
80% LTV
5.45%
65% LTV
5.45%
Uninsured
5.5%		N/A

How mortgage rates are determined in Thunder Bay and what influences them

There are three main drivers behind mortgage rates in Thunder Bay and Canada at large:

The Bank of Canada policy rate

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.

Inflation and economic conditions

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).

Lender competition

Banks, credit unions, monoline lenders and other financial institutions compete to attract borrowers across Thunder Bay 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 BAY Credit Union — can often result in a better mortgage rate.

 

Factors that affect your Thunder Bay mortgage rate

Mortgage interest rates in Thunder Bay (and across Canada) are influenced by a number of different factors. Each factor represents an area of risk to your lender if they choose to approve you for a home loan. Here's what they are:

1. Down payment

Homebuyers who put down at least 20% of their property’s purchase price typically earn lower mortgage rates from lenders. Lenders tend to see homebuyers with larger down payments as less risky than high-ratio borrowers. For this reason, your house mortgage rates in Thunder Bay may be lower with a more sizable down payment.

The federal government has additional rules about the required size of your down payment based on the cost of your home:

  • A home that costs $500,000 or less: the minimum down payment is 5% of the purchase price
  • A home that costs $500,000 to $1.5 million: the minimum down payment is 5% of the first $500,000 of the purchase price, and 10% for the portion above the purchase price above $500,000
  • A home that costs $1.5 million or more: the minimum down payment is 20% of the purchase price

If your down payment is less than 20% of your home’s purchase price, you’ll need to budget for mortgage insurance from the Canada Mortgage and Housing Corporation (CMHC), Sagen or Canada Guaranty. The premium can be paid in one lump sum when you close on your home, or it can be added to your monthly mortgage payments.

2. Debt service ratio

Mortgage companies in Thunder Bay want to know how your income compares to your debt levels when evaluating whether to lend you money for a home purchase and what interest rates to offer you. The following figures aim to paint a portrait of your debt obligations related to your income.

  • Gross debt service ratio (GDS): This figure compares your income to your housing costs. These costs include your mortgage payment, property taxes, heating bills and 50% of your condo fees (if your home is a condo). According to CMHC guidelines, you should be spending 39% or less of your income on housing.
  • Total debt service ratio (TDS): This figure includes all of the costs from the GDS ratio plus other debt obligations like credit card balances, auto loans, personal loans and student debt. Lenders feel most comfortable with borrowers who spend 44% or less of their income on these debt repayments.

3. Credit score

Your credit score is a major factor in your Thunder Bay mortgage rates because it provides a report card for how you’ve handled debt in the past. Do you have a track record of timely repayment? Or have you defaulted on credit card balances and your car loan? Your credit history also tells borrowers whether you use credit responsibly by limiting how much of your available credit you use and how often you open new accounts. Your credit score is expressed as a number from 300 to 900, with higher scores reflecting better use of credit. To qualify for CMHC mortgage insurance you’ll need a minimum credit score of 600. This is required if your down payment is less than 20% of your home’s purchase price.

4. Income and employment

Lenders will evaluate all your regular income sources, including paycheques earned from a salaried job, investment income rental income. In addition to asking about your income, lenders will ask about your type of employment (a permanent salaried job, part-time work, seasonal work, self-employment, etc.) If you are self-employed, you’ll need to provide extra documents including your business’s articles of incorporation, three years of tax returns, your GST license, balance sheet, cash flow statement and more.

Confident that you’re a well-qualified borrower? When you’re ready to compare mortgage rates in Thunder Bay, just let us know whether you’re buying a home, renewing or refinancing and click the “Get Started” button at the top of the page.

Why Canadians use LowestRates.ca to compare mortgage rates online

By entering a few details about your home, you can compare the quotes from the best home insurance providers in your area. That’s all it takes to save hundreds of dollars per year on your home insurance policy — just like that.

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Thunder Bay conventional vs. high-ratio 5-year fixed mortgage rates

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 September 2026, the average conventional 5-year fixed rate is 4.49%. That’s 40 bps above the average high-ratio 5-year fixed rate, which stands at 4.09%.

Conventional 5-year fixed mortgage rates vs. high ratio 5-year fixed mortgage rates in Ontario

DateAverage Conventional RateAverage 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

Thunder Bay 5-year fixed vs. variable mortgage rates

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 September, the 5-year fixed rate is 4.30%. That’s 41 bps abow the 5-year variable rate, which stands at 3.89%.

5-year fixed vs. 5-year variable mortgage rates in Ontario

MonthFixedVariable
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

Average value of new mortgage loans in Thunder Bay

New mortgage loan values have been trending upward throughout 2025, reaching the average of $290,528 in Thunder Bay and $360,597 in Canada by the end of Q4 2025.

Here are all the average new mortgages loan values in Ontario from 2022 to 2025:

 Q1 – 2022Q2 – 2022Q3 – 2022Q4 – 2022Q1 – 2023Q2 – 2023Q3 – 2023Q4 – 2023Q1 – 2024Q2 – 2024Q3 – 2024Q4 – 2024Q1 – 2025Q2 – 2025Q3 – 2025Q4 – 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
Thunder Bay$239,817$253,904$250,882$237,116$231,028$230,367$245,765$247,921$221,308$243,978$265,151$263,228$252,617$270,661$297,071$290,528

Source: Canada Mortgage Housing Corporation

Average scheduled monthly payments for new mortgage loans in Thunder Bay 

Scheduled monthly payments have been trending downward throughout 2025, reaching the average of $1,694 in Thunder Bay by the end of Q4 2025.

Q1 – 2022Q2 – 2022Q3 – 2022Q4 – 2022Q1 – 2023Q2 – 2023Q3 – 2023Q4 – 2023Q1 – 2024Q2 – 2024Q3 – 2024Q4 – 2024Q1 – 2025Q2 – 2025Q3 – 2025Q4 – 2025
$1,273$1,420$1,480$1,494$1,533$1,517$1,612$1,662$1,519$1,619$1,720$1,643$1,532$1,612$1,731$1,694

Source: Canada Mortgage Housing Corporation

Thunder Bay closing costs and land transfer tax

Closing costs are the one-time fees buyers pay upon purchasing property in Thunder Bay. Generally, closing costs include:

  • Land or transfer tax
  • Lawyer fees
  • Inspection fees
  • Homeowner’s insurance
  • Appraisal fees

Land transfer tax calculations for a $500,000 property in Thunder Bay without a rebate are:

  • 0.5% on the first $55,000
  • 1% on the portion between $55,000 and $250,000
  • 1.5% on the portion between $250,000 and $400,000
  • 2.0% on the portion between $400,000 and $2,000,000
  • 2.5% on the amount above $2,000,000
 

What is a First Home Savings Account (FHSA)?

A first home savings account (FHSA) is a registered plan that allows first-time home buyers to save to buy or build a qualifying first home tax-free, up to certain limits.

FHSA participation room in the year the account is opened is $8,000.

Your questions about Thunder Bay mortgages, answered.

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

Mortgage term and amortization period may seem like the same thing, but they are decidedly not. Here's the difference:

Mortgage term: The term is the amount of time certain conditions are locked in, such as your interest rate. Terms usually run from six months to 10 years, but five years is the most common mortgage term in Canada. By the end of the term, the mortgage must either be fully paid off or you must get a new term, with new conditions.

Amortization period: Amortization is the total amount of time it takes to pay off your mortgage in full. In Canada, an amortization period can be up to 30 years. If your down payment is less than 20%, the maximum amortization period allowed by the Canada Mortgage and Housing Corporation (CMHC) is generally 25 years.

However, first-time buyers and buyers of newly built homes can qualify for a 30-year amortization on an insured mortgage. A shorter amortization period means your monthly payments will be higher, but you’ll pay less interest. A longer amortization period means your payments will be lower, but you’ll pay more toward interest charges over the life of your mortgage.

What’s the difference between an open mortgage vs. a closed mortgage?

In the world of home buying, the words “open” and “closed” refer to how flexible your mortgage contract is about the pace of repayment on your loan. This impacts your mortgage interest rate.

  • Open mortgage: With an open mortgage, you can pay off your loan early, sell or refinance your home at any time without paying penalty fees. In other words, you have broad prepayment privileges. In exchange for this flexibility, you typically pay higher interest rates.
  • Closed mortgage: Most homebuyers opt for a closed mortgage because their interest rates are typically lower than with open mortgages. Closed mortgages require you to make your repayments over a specific time frame and charge prepayment penalties for paying off your mortgage early, refinancing or selling before the end of the mortgage contract. That said, many closed mortgage products do allow you limited prepayment privileges, meaning you can make additional payments above your monthly minimum amount up to a certain maximum figure.


Each lender has different policies about what kinds of prepayments are allowed without a prepayment charge (if any), so be sure to ask about this before you close the deal on your home if you’re interested in faster repayment of your mortgage. Prepayment penalties can be large enough in many cases to cancel out any savings on interest from paying off your home loan early.

How much does getting a lower interest rate matter in Thunder Bay?

Securing the lowest mortgage interest rate in Thunder Bay is important if you want to reduce the cost of your home. But there are a few other factors that you should consider, too. Here are other items to look out for that could impact the cost of your home loan:

  • Prepayment penalties: If you’d like to make faster repayments on your mortgage to try to pay off your loan ahead of schedule, beware that your lender may have rules about this — and penalty fees if you don’t follow them. These fees can add up to more than you might save on interest payments, so it’s important to understand the specific terms of your mortgage contract.
  • Prepayment privileges: Prepayment privileges in your mortgage contract mean you’re allowed to make accelerated payments beyond the minimum monthly payment amount without incurring penalty fees. If you have an open mortgage, your contract may not have any prepayment penalties, since this type of mortgage is the most permissive about early repayment. With a closed mortgage, policies vary by lender. Some offer limited prepayment privileges, like the ability to pay up to a certain percentage of your home’s purchase price each year as a lump sum in addition to monthly mortgage payments, or the option to double a mortgage payment annually. Make sure you understand exactly what your prepayment privileges permit so you don’t get slapped with a fee!
  • Portability: Portability describes the ability to take your current mortgage with you to your new home if you buy a new property. This is called “porting” your mortgage. This means you will keep the same terms as your mortgage contract on the home you are leaving when you move to your new home. There may be a fee associated with porting your mortgage. Portability is one feature of your mortgage contract you should learn about before signing, so you understand what will happen if your circumstances change during the course of your home loan repayment period — if you get a job in a new city and need to move, for instance, or if you believe you might want to move to a different home before you have paid off the first one.

How are mortgage rates determined on LowestRates.ca?

LowestRates.ca works with leading banks and brokers to bring you competitive mortgage rates from lenders in Canada. All you have to do is answer a few questions, and in minutes you’ll be provided with today’s mortgage rates for Thunder Bay. 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.

Is it safe to get a mortgage online?

Yes, it’s safe — you no longer need to visit a bank branch or mortgage broker’s office in person to apply for a mortgage. It’s becoming increasingly common for Canadians to apply for mortgages online. LowestRates.ca only works with reputable, trustworthy financial institutions. Your credit score won’t be affected and your information is secure. We don’t share your information with anyone unless you want to connect with a mortgage broker. We take care of the heavy lifting by comparing the market for you and can connect you with the best mortgage lenders in the country.

How do I know I’m getting the lowest rate?

We have a strong selection of lenders on LowestRates.ca including the big banks and many independent providers and we’re adding more lenders all the time. This ensures we’re always delivering you a competitive rate. Even if you’re not ready to commit to anything, you can use our site as a starting point for research (it’s totally free, and you’re under no obligation).

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

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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