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Today’s Ontario Mortgage Rates

Need a mortgage in Ontario? Quickly compare current mortgage rate offers from Canada’s top bank and non-bank lenders.
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Currently showing: fixed & variable rate mortgages in Ontario for 1, 2, 3, 4, 5 year terms
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Ontario mortgage rate update: September 2025

Profile photo of Clay Jarvis
Written by Clay Jarvis
Lead Writer & Spokesperson
Profile photo of Clay Jarvis
Written by Clay Jarvis
Lead Writer & Spokesperson

September could be an interesting month for mortgages in Ontario.

Government bond yields, which lenders use to price their fixed mortgage rates, have trended down in the first week of the month. When yields dip for a sustained period of time, it generally gives lenders room to lower their fixed-rate offers.

We haven’t seen much movement yet. Three- and five-year fixed rates are still around 3.9% at mortgage brokerages, with some offering three-year terms as low as 3.69%. Fixed rates are generally well over 4% at Canada’s Big Six banks.

Variable rates could decline as soon as September 17, when the Bank of Canada will announce its next overnight rate decision. Disappointing GDP and unemployment numbers are strong arguments in favour of a rate cut, even though inflation remains well above the Bank’s target of 2%.

If the Bank reduces the overnight rate by 0.25%, the country’s lowest variable rates will drop to around 3.7%.

Rate cuts and lower bond yields are generally signs of a lagging economy, so even if affordability improves for buyers in September, we may not see housing demand pick up until buyers see more stability in the economy.


Read more about the Bank of Canada's latest rate announcement.

The BoC makes policy interest rate announcements eight times a year. Find out how its latest decision might impact Canada's housing market.

What’s a good mortgage rate in Ontario right now?

As of September 2025, some mortgage brokers in Ontario are offering fixed rates for under 4%, though fixed rates at most banks are closer to 4.25%. The lowest variable rates are around 3.9%.

The rate offers you receive depend on factors like your credit score, total debt level and income, and whether you apply at a major bank or through a mortgage broker.

2025 Ontario mortgage rate forecast

Mortgage rates may decrease further in the second half of 2025.

The Bank of Canada is expected to reduce its overnight rate again twice before the end of the year, which would lower variable mortgage rates by at least 0.5% versus today’s levels.

Fixed mortgage rates will likely continue hovering between 3.75% and 4.25% for the remainder of 2025.

Ontario housing market update

Home sales in Ontario were up 5.2% in August compared to a year ago, but were 7% and 20% below the five- and 10-year averages, respectively.

According to the Ontario Real Estate Association, the average price of a resale home was $804,985 in August, down 1.9% from August 2024 — the third consecutive month of declining prices.

Ontario home buyer resources

Ontario first-time home buyer programs

Areas including Waterloo, the County of Simcoe, Kingston and Chatham-Kent have home buyer assistance programs that can keep costs down.

Land transfer tax refund

When buying your first home in Ontario, you can claim a refund up to $4,000 of land transfer taxes. If you’re a first-time home buyer in Toronto, you may qualify for a $4,475 refund on your municipal land transfer tax.

Ontario land transfer taxes

$4,475.00Estimated land transfer tax

In Ontario, you'll pay a land transfer tax based on your home's value. The rate tops out at at 2.5% for values more than $2 million.

  • 0.5% of the first $55,000 of the home's value.
  • 1.0% of any additional value between $55,000 and $250,000.
  • 1.5% of any additional value between $250,000 and $400,000.
  • 2.0% of any additional value between $400,000 and $2 million.
  • 2.5% of any additional value that's more than $2,000,000 if the land contains no more than two single-family residences.

Mortgage calculators

Frequently asked questions


The Bank of Canada overnight rate has been unchanged since March. If the bank lowers the rate, lower variable mortgage rates will follow. Fixed mortgage rates will likely continue hovering between 3.75% and 4.25% for much of the year.

The mortgage rate you’re offered in Ontario will be based on two primary factors; the state of the economy and your financial situation.

Economic factors

Variable mortgage rates are influenced by the Bank of Canada’s overnight rate. When the overnight rate increases or decreases, a lender’s prime rate follows suit. Variable mortgage rates are based on a lender’s prime rate, so as the prime rate rises or falls, so do variable rates.

Fixed mortgage rates are determined by activity in the government bond market, particularly the yields on one-, three- and five-year bonds. Fixed mortgage rates follow the movement of those yields.

Your financial situation

Factors specific to you also affect the rates you’re offered. These include:

  • Your credit score.

  • Your income.

  • Your total debts.

  • The loan type you choose.

  • The amount you’re borrowing.

  • The term length and amortization period of your loan.

Some factors behind rates are beyond your control, but there are steps you can take to possibly qualify for the best mortgage rates, including:

  • Improve your credit score. A higher credit score generally results in better offers. Get a better score by eliminating existing debt and paying future bills in full and on time.

  • Increase your income. It’s not always easy, but any additional income will improve your financial position. Lenders look at your income to assess your ability to afford a mortgage.

  • Decrease your total debts. Pay down personal loans, student loans or other types of debts. Lenders consider your total debt load when determining the details of your loan.

  • Consider all your options. See if adjusting the loan type, the term length or the amortization period of your loan could help.