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5-Year Variable

4.79%

5-Year Fixed

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Compare mortgage rates in Toronto.

Toronto is one of Canada’s most expensive housing markets. If you're trying to buy a home in the big city, you’re probably on the lookout for the lowest mortgage interest rate in Toronto you can find.

We can help with that. LowestRates.ca brings you the best mortgage rates from 50+ Canadian banks and brokers. 

We shop the mortgage market for you by comparing mortgage rates not just in Toronto or Ontario, but across Canada.

All you have to do is fill out the form and you’ll be on your way to securing the cheapest Toronto mortgage rates. It's totally free, and you're not obligated to do anything.

Keep scrolling to learn everything you need to know about mortgage rates for a house in Toronto. And if you're eyeing a condo, like so many Torontonians, we didn't leave you out: the information below applies to condos, too.

Ready? Let's go!

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
4.99%
80% LTV
5.6%
65% LTV
5.6%
Uninsured
6.69%
7.09%
 
2-year fixed rate
Insured
5.59%
80% LTV
5.14%
65% LTV
5.14%
Uninsured
6.04%
6.39%
 
3-year fixed rate
Insured
4.79%
80% LTV
4.94%
65% LTV
4.94%
Uninsured
4.94%
5.64%
 
4-year fixed rate
Insured
4.94%
80% LTV
4.89%
65% LTV
4.89%
Uninsured
5.04%
5.49%
 
5-year fixed rate
Insured
4.74%
80% LTV
4.79%
65% LTV
4.79%
Uninsured
4.89%
5.04%
 
7-year fixed rate
Insured
4.94%
80% LTV
5.29%
65% LTV
5.29%
Uninsured
5.09%
5.9%
 
10-year fixed rate
Insured
5.74%
80% LTV
5.84%
65% LTV
5.84%
Uninsured
5.84%
7.25%
 
3-year variable rate
Insured
6.1%
80% LTV
6.7%
65% LTV
6.7%
Uninsured
N/A
8.6%
 
5-year variable rate
Insured
5.9%
80% LTV
6.1%
65% LTV
6.1%
Uninsured
6.15%
6.59%
 
HELOC rate
Insured
7.2%
80% LTV
7.2%
65% LTV
7.2%
Uninsured
7.2%
N/A
 
Stress test
Insured
6.74%
80% LTV
6.79%
65% LTV
6.79%
Uninsured
5.25%
N/A

Variable Rates

As low as

6.00%

Fixed Rates

As low as

4.79%

Cha-ching! Our rates are always lower than the posted bank rates.

Current lowest posted bank rate

7.49%

Conventional vs. high-ratio mortgages: which is cheaper?

Depending on how much of a down payment you have, there are two main types of mortgages you can apply for: a conventional mortgage or a high-ratio mortgage.

A conventional mortgage means the homebuyer has a down payment of at least 20% of the property’s purchase price. For example: If a home costs $850,000, the down payment would need to be at least $170,000 for a conventional mortgage. With this type of mortgage, the homebuyer doesn’t have to purchase mortgage insurance from the Canada Mortgage and Housing Corporation (CMHC).

A high-ratio mortgage, on the other hand, is where buyers put down less than 20% of the purchase price as a down payment. In this scenario, you’re required to purchase mortgage insurance from the CMHC. This type of insurance is to protect lenders if you stop making your mortgage payments and default on your loan.

Now to answer the question of which mortgage type is cheaper: it depends! The interest rates on high-ratio mortgages tend to be lower than the rates offered to buyers who can make a larger down payment. Why? Because they're insured by the CMHC, which lowers the amount of risk the lender takes on. No matter what, if you stop making mortgage payments, the lender will get their money back thanks to insurance. 

However, the larger your down payment, the smaller your mortgage loan will be. This means your payments will also be smaller compared to someone with a high-ratio mortgage. 

One thing's for sure, no matter which type of mortgage you go for, you can almost certainly find a better mortgage rate by comparing multiple lenders. 

 

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

DateAverage Conventional RateAverage High Ratio Rate
05/23 4.86%4.52%
06/23 5.24%4.92%
07/23 5.54%5.14%
08/23 6.22%5.42%
09/23 6.00%5.61%
10/23 6.14%5.87%
11/23 6.15%5.77%
12/23 5.92%5.56%
01/24 5.66%5.29%
02/24 5.30%5.05%
03/24 5.17%4.92%
04/24 5.10%4.91%

Last Updated: May 1, 2024

Fixed rate vs. variable rate mortgages: which is cheaper?

When looking for the best mortgage rates for homes in Toronto, you want to be aware of the options that best suit your needs. When it comes to mortgage rates, there are two types to choose from: fixed or variable.

A fixed rate doesn’t change for the entire length of your mortgage term. This means your rate is locked in and stays consistent for a specified number of years, regardless of changes in the market.

On the other hand, variable mortgage rates in Toronto will fluctuate based on changes in the market, including changes to the Bank of Canada’s overnight rate. The Bank of Canada’s overnight rate influences the interest rate lenders set for certain loans, including variable rate mortgages.

Fixed mortgage rates in Toronto are usually higher, but can be attractive to buyers who want consistency throughout their term.

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

MonthFixedVariable
05/23 4.65%5.88%
06/23 5.02%6.12%
07/23 5.30%6.36%
08/23 5.59%6.50%
09/23 5.70%6.54%
10/23 5.90%6.52%
11/23 5.84%6.51%
12/23 5.64%6.44%
01/24 5.45%6.34%
02/24 5.22%6.45%
03/24 5.07%6.34%
04/24 4.99%6.31%

Last Updated: May 1, 2024

Factors that affect your Toronto mortgage rate

Before you start searching for your dream home or condo, it’s a good idea to sit down and take a good look at your financial situation. There are a number of factors that mortgage companies in Toronto consider before approving your application. Understanding what lenders look at to calculate your Toronto mortgage rate can help you secure the lowest possible interest rate.

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Typical mortgage amount in Toronto

A “typical” mortgage size for Toronto depends on the amount of your down payment and the price of the home. Unless you’ve saved up a substantial down payment, the size of a mortgage in Toronto will likely be much higher compared to other cities.

According to the CMHC, the average scheduled monthly payment for new mortgage loan increased in Q2 2023 to $2,891 compared to $2,466 in Q2 2022. This is despite the average sale price of housing going down year-over-year because of the increasing interest rates. While the Bank of Canada halted its overnight rate hike in Q1 2023, the average scheduled monthly payment for new mortgage loan was $2,962 compared to $2,208 just a year ago in Q1 2022.

The average value of new mortgage loans also seems significantly lower in Q2 2023 at $480,852 compared to $556,881 in Q2 2022. There wasn't much difference in Q1 vs. Q2 of 2023, with average new mortgage loan for Toronto being $482,980 compared to $538,547 in Q1 2022.

Toronto housing market and home prices

The housing market in Toronto and the Greater Toronto Area (GTA) witnessed an upward tick in July 2023 in comparison to July 2022. Home sales were trending lower in July compared with June while new house listings were up.

On a year-on-year basis, home sales in 2023 continued to be above last year’s levels in July, which suggests that many households have adjusted to higher borrowing costs. However, since the Bank of Canada restarted its rate tightening cycle in June 2023, it appears that the sales momentum that was seen earlier in the spring has stalled somewhat.

One big impact that higher interest rates has had on the market is the persistent lack of home listings for buyers to purchase compared to the previous year, a market report by Toronto Regional Real Estate Board (TRREB) said.

As of July 2023, the average price for a detached home in Toronto is $1,484,139, a semi-detached would cost $1,137,526, while the price o an average townhouse in Toronto stood at $1,068,591, $842,665 for a condo townhouse and $724,534 for a condo apartment.

Compared with last year, in July 2022 the average price for a detached home in Toronto was $1,623,119, a semi-detached cost $1,247,338, while the price of an average townhouse in Toronto stood at $1,141,640, $902,443 for a condo townhouse and $776,287 for a condo apartment.

Toronto closing costs and land transfer tax

As with many things, extra little fees and costs add up. If you’re buying a home in Toronto, you need to have money for more than just the down payment and mortgage fees. Below is a list of costs to budget for and plan for in advance. In preparing for closing day, experts recommend stashing aside 1.5% to 4% of the purchase price for these additional costs:

Toronto is unique in that it charges home buyers a municipal land transfer tax on top of the Ontario provincial land transfer tax. Ontario’s land transfer tax is based on the value of your property. Here’s how the provincial land transfer tax is calculated:

Purchase PriceTax Rate
0–$55,0000.5%
$55,000–$250,0001%
$250,000–$400,0001.5%
$400,000–$2 million2%
$2 million +2.5%

The City of Toronto’s land transfer tax is calculated the same way as the provincial one. So if you’re buying a home within Toronto city limits, you’re going to pay a double land transfer tax.

 

Information for first-time home buyers in Toronto

Banks vs. brokers: When looking for the lowest mortgage rates in Toronto, you’re going to need to shop around and do adequate research. One decision that homebuyers will have to make is whether to use a bank or a broker. So what’s the difference between the two? A bank is a lender and they can give you only the mortgage products offered by that specific financial institution. A broker on the other hand, is like a personal shopper who works with different lenders to find you the option most suitable to your needs. Note that a broker can find you the best bank mortgage rates in Toronto, but the mortgage itself doesn’t actually come from the broker.

Tax credits: Buying a home in Toronto is expensive, but you may qualify for a few different tax credits.

  • First Time Home Buyers’ Tax Credit: If you’re a first-time homebuyer purchasing your new digs in Toronto, the federal government offers a non-refundable tax credit of $5,000. This credit is available across Canada. To qualify, you must be a citizen or permanent resident, at least 18 years old, you must occupy the home for the first nine months and neither you nor your spouse can have owned a home anywhere in the world.
  • GST/HST New Housing Rebate: If you buy a new or substantially renovated home or condo in Ontario, you could qualify for the New Housing Rebate. This can be used by a person to recover GST or HST but only applies if the home is being used by the individual as their primary place of residence.
  • Federal Home Accessibility Tax (HATC) for Seniors and Persons with Disabilities: Individuals who either have a disability or are age 65 or older at the end of the tax year qualify for the HATC tax break. This break allows you to claim up to $10,000 on renovations, repairs or work performed on your primary residence.
  • Municipal Land Transfer Tax Rebate: First-time homeowners in Toronto can qualify for a rebate up to $3,725. To apply, the criteria is the same as the federal First Time Home Buyers’ Tax Credit. There’s one difference: a buyer can apply if they become a Canadian citizen or resident within 18 months of the land transfer, despite not having citizen or resident status at closing time.

Home insurance: While home insurance isn’t a legal requirement, it will be hard to obtain a mortgage without it. A house is an expensive asset, and most lenders will want assurance that you’re protected in case of accidental damage to your home. Remember: your lender has a financial stake in your home or condo, so they need to know that you’re prepared for worst-case-scenario events.

Your questions about Toronto mortgages, answered.

How can I find the best mortgage rates in Toronto?

Comparing rates from different banks and mortgage lenders is the best way to find the lowest mortgage rates available in the market. Lowestrates.ca helps you compare mortgage rates from 50+ lenders across Canada and you can make the decision of choosing the mortgage type and rate based on your financial situation.

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

For first-time buyers, the terms and definitions around buying your house or condo can be a little confusing. One of the most misunderstood concepts is the mortgage term vs. the amortization period.

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 CMHC is 25 years. 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?

When securing a mortgage, one of the many decisions you’ll have to make is whether you want an open mortgage or a closed one. How do they differ?

Closed mortgage: A cut-and-dry, non-flexible contract in which you’re not allowed to make additional payments or increase the amount of your mortgage payments. You also won’t be able to negotiate any terms or pay the entire mortgage off before the end date of the mortgage term.

Open mortgage: This type of mortgage has wiggle room and flexibility, and allows you to make additional payments on your mortgage if you want to. The downside? Open mortgages typically have higher interest rates.

How much does it cost to live in Toronto?

Along with Vancouver, Toronto is one of the most expensive cities in Canada. LowestRates.ca calculated the cost of living in the City of Toronto depending on whether you own a home, rent, drive or take public transit.

We found that in order to own a home in the city, residents will pay over $4,000 per month in housing costs, not including the land transfer tax that’s paid in full at the time of the transfer of the deed. In order to own a home and a car in the city, residents will need to earn $94,000 before taxes. Residents who own just a home and opt to take public transit will need to earn at least $88,000 per year.

How much does getting a lower interest rate matter in Toronto?

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.

Prepayment privileges: Not all banks and brokers offer the same prepayment terms, however, so it’s important to raise it before you sign your contract. Before signing on the dotted line, prepayment privileges are something you should discuss with your lender.

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.

Your questions about LowestRates.ca, answered.

How are mortgage rates determined on LowestRates.ca?

LowestRates.ca works with 50+ banks and brokers across the country to bring you the best rates for homes in Toronto. We work with our partners to obtain their best deals and offers, and 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 rates for Toronto. 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 not only in Toronto, but across 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.

Shivani Kaul

Shivani Kaul

About the Author

Shivani Kaul is a content manager in the personal finance space. Prior to this, she worked as a digital editor with Pagemasters North America (a division of The Canadian Press) for four years. Shivani has also worked as a freelance writer and editor for Investor's Digest of Canada and The Ghost Bureau.

She has more than a decade of experience working as an editor and writer for different news media organizations in Canada and South Asia. She has a Digital Marketing Management certification from the University of Toronto, a Master's degree in Mass Communication (Journalism) and a Bachelor's degree in English from the University of Delhi (India).

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