Ontario, Canada’s most populous province, offers highly competitive mortgage rates. Home to the country’s financial hub in Toronto, Ontarians have access to all of the major banks and lenders when shopping for a mortgage. Mortgage rates in Ontario are driven by housing demand, inventory levels, bond yields, and Bank of Canada policy decisions.
Finding the absolute lowest rate involves careful research and comparison shopping. Read on to ensure you get the optimal financing for your Ontario property purchase or refinance.
Current Mortgage Rates in Ontario
| Lender | 1-Year Fixed | 3-Year Fixed | 5-Year Fixed | 5-Year Variable |
|---|---|---|---|---|
| CIBC | 5.09% | 3.99% | 3.99% | 4.35% |
| BMO | 5.15% | 4.09% | 4.25% | 4.43% |
| RBC | 5.19% | 4.19% | 4.29% | 4.55% |
| TD Bank | 5.29% | 4.29% | 4.39% | 4.89% |
| Scotiabank | 5.34% | 4.44% | 4.64% | 4.95% |
| National Bank | 5.19% | 4.19% | 4.19% | 4.95% |
| nesto | 4.79% | 3.79% | 3.84% | 3.84% |
| Butler Mortgage | 4.85% | 3.79% | 3.84% | 4.00% |
| Meridian Credit Union | 4.99% | 3.89% | 3.89% | 4.05% |
| First National | 4.89% | 4.29% | 4.29% | 4.30% |
| MCAP | 4.99% | 4.29% | 4.39% | 4.35% |
| Alterna Savings | 4.94% | 4.04% | 4.04% | 4.15% |
| Equitable Bank | 5.04% | 4.14% | 4.14% | 4.45% |
| Pathwise Credit Union | 4.99% | 3.99% | 3.99% | 4.95% |
| DUCA Credit Union | 5.09% | 3.94% | 4.09% | 4.25% |
| Tangerine | 5.49% | 4.59% | 4.79% | 4.75% |
| motusbank | 6.39% | 6.59% | 6.69% | 6.49% |
Ontario Mortgage Rate Trends
Mortgage rates in Ontario have been on a downward trajectory since the Bank of Canada began cutting rates in June 2024. The Bank of Canada’s overnight rate directly affects prime and, in turn, variable mortgage pricing. When the Bank of Canada adjusts its overnight rate, lenders change their prime accordingly. After seven consecutive cuts, the BoC held the overnight rate steady at 2.75% on April 16, 2025.
This pause aims to balance economic growth and inflation, still high at 2.3% in March 2025. As a result, variable rates are unchanged, with the lowest now at 3.95%.
Fixed mortgage rates in Ontario follow the 5-Year Government of Canada bond yield, which dropped to around 2.7% in early May 2025. This is a significant decrease from previous years, allowing lenders to offer some of the lowest fixed rates seen since 2022.
What Are Rate Forecasts for The Rest of 2025?
While additional Bank of Canada rate cuts are possible this year, experts caution they will depend heavily on inflation and trade disputes. The central bank wants to balance price stability and economic growth. Economics experts are expecting at least two rate cuts by the end of the year.
Most analysts also expect fixed mortgage rates to remain elevated for the foreseeable future. Based on forecasts, borrowers hoping for rates below 3% again may need to wait until at least late 2025 or early 2026. Stay informed on market updates.
An Outlook on the Ontario Housing Market
Despite a 20.2% year-over-year sales slide in April 2025, Ontario real estate remains resilient. Average home prices dipped 4.8% to $859,645 compared to April 2024 (Ontario Real Estate Association).
With population growth expected to drive demand, Ontario should continue leading Canada’s housing industry pending global stabilization. The province’s economic strength will likely bring a balanced market return.
The table below illustrates Ontario housing market by region (April 2025)
| Region | Price | Yearly Change |
|---|---|---|
| Ontario (Provincial) | $859,645 | -4.8% |
| Oakville-Milton, Greater Toronto | $1,121,010 | -0.7% |
| Cornwall, Kingston and Area, Ottawa, Renfrew County, Rideau-St. Lawrence | $719,717 | -6.2% |
| Bancroft & District, Barrie & District, Kawartha Lakes, Lakelands, Northumberland Hills, Peterborough and the Kawarthas, Quinte & District | $416,420 | -0.7% |
| North Bay, Saul Ste. Marie, Sudbury, Thunder Bay, Timmins, Cochrane & Timiskaming Districts | $784,457 | -1.7% |
| Brantford Region, Guelph & District, Hamilton-Burlington, Kitchener-Waterloo, Niagara Region, Simcoe, and Cambridge | $606,784 | -1.5% |
| Chatham-Kent, Grey Bruce Owen Sound, Huron Perth, London & St. Thomas, Sarnia-Lambton, Windsor-Essex, Woodstock-Ingersoll-Tillsonburg | $859,645 | -4.8% |
Source: Ontario MLS® home sales down to lowest April in five years – CREA
Special Assistance for Ontario First-Time Homebuyers
First-time buyers in Ontario can access incentives like:
- Ontario Land Transfer Tax Rebate: Up to $4,000 back
- Toronto Land Transfer Tax Rebate: Up to $4,475 back
- First-Time Home Buyer Tax Credit: Federal credit up to $1,500
- Downpayment assistance programs through some municipalities
- Lower premiums with CMHC, Genworth, and Canada Guaranty mortgage insurance
What Mortgage Lenders Are Available in Ontario?
Ontario’s position as Canada’s most populous province and financial hub means several lenders, particularly credit unions, operate exclusively within the province.
Major Banks
The Big Six banks, RBC, TD, Scotiabank, BMO, CIBC, and National Bank, dominate Ontario’s mortgage industry. Their scale gives them significant pricing power. The Big Six provide seamless bundles with other bank products and often offer discounts for existing customers. However, their rates are not always the lowest, making it important to compare options.
Other major banks that offer mortgage products in Ontario include:
- Tangerin Bank
- Motusbank
- HSCB
- Equitable Bank
Ontario Credit Unions
Ontario-specific credit unions often offer competitive rates and more flexible qualification criteria compared to major banks:
- Meridian Credit Union
- FirstOntario Credit Union
- Alterna Savings
- DUCA Financial Services Credit Union
- Kawartha Credit Union
Credit unions in Ontario must be members of the Credit Union Central of Ontario to offer CMHC-insured high-ratio mortgages, which most are.
Digital Lenders
With no physical branches, digital lenders like Equitable Bank, Motive Financial, and Simplii Financial deliver online-only mortgage experiences. Digital lenders have gained popularity nationwide by avoiding overhead costs from operating branch networks.
Digital lenders tout ease of use and quick approvals. However, some borrowers still prefer in-person mortgage advice. Many digital players are subsidiaries of large financial institutions.
Ontario Broker Landscape
Ontario’s mortgage broker industry is substantial and growing. Major brokerages in Ontario include:
- Dominion Lending Centres
- M3 Financial Group (including Verico, Invis, and Mortgage Alliance)
- Butler Mortgage
- Northwood Mortgage
- intelliMortgage
Brokers in Ontario must be licensed by the FSRA and follow the Mortgage Brokerages, Lenders and Administrators Act, which regulates their activities and responsibilities.
Mortgage Broker vs. Direct Lender in Ontario
| Mortgage Broker | Direct Lender | |
|---|---|---|
| Access to Rates | Multiple lenders (often 30+) | Single institution’s rates |
| Cost to Borrower | No direct cost (paid by lenders) | No direct cost |
| Negotiation Power | Can leverage multiple offers | Limited to in-house flexibility |
| Specialized Situations | Access to lenders for unique scenarios | Limited to their own policies |
| Convenience | One application for multiple lenders | Separate applications needed |
FAQs on Ontario Mortgage Rates
The Bottom Line
Finding the best mortgage rate in Ontario requires carefully examining your needs and comparing options across multiple lenders. Rates fluctuate regularly based on housing markets, bond yields, and Bank of Canada policies. This guide provided an extensive overview of today’s mortgage landscape. Now is an opportune time for both new buyers and current homeowners to explore savings.