Best Mortgage Rates in Ontario

Compare customized mortgage rates from Canada’s top lenders. Find the best fixed or variable mortgage rate for your needs.

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Currently showing: fixed & variable rate mortgages in Ontario for 1, 2, 3, 4, 5 year terms

Eight Twelve Mortgage Disclaimer: The rates displayed do not include any taxes, fees, insurance, or other additional charges. These rates are estimates and are not guaranteed. The actual rate and loan terms you receive will depend on our partner’s assessment of your creditworthiness, loan amounts, and other relevant factors. Please note that any potential savings figures provided are estimates based on the information you and our advertising partners have provided. Terms and conditions apply. Mortgage Brokerage licensed in ON #13072, AB #2122265990, BC #X300983, MB #RW-2011175, NL #88786, NB #210042526, NS #2023-3000270, PEI #755902715, QC #606914, SK #508695, YT #839770

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Ontario mortgage rate update: June 2025

Variable rates are holding steady.
The BoC could change rates on July 30.
Fixed rates have seen recent upticks.

On June 4, 2025, the Bank of Canada decided to hold its overnight rate at 2.75%. Maintaining the overnight rate means variable mortgage rates in Ontario will stay at their current levels until at least July 30, when the Bank is scheduled to make its next overnight rate decision.

The lowest variable rate offers remain around 4% at several mortgage brokerages, but are higher at the country’s largest banks.

A rate hold in June was expected, as April’s high inflation numbers made cutting rates a risky proposition. Analysts expect the Bank of Canada to cut its overnight rate at least twice more in 2025, which would shave at least 0.5% from variable mortgage rates.

Fixed mortgage rates have been a little more volatile, as lenders respond to activity in the government bond market.

Government bond yields rose for much of May, and were up in the first few days of June. When yields rise, fixed rates tend to follow suit.

Sure enough, three- and five-year fixed rates have been edging up in Ontario.

As of June 4, 2025, fixed-rate offers had climbed north of 4.1% at many mortgage brokerages. If bond yields continue to rise, 4.1% might look like a bargain in a few weeks.

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

As of June 2025, some mortgage brokers in Ontario are offering fixed rates for around 4.1% and variable rates for around 4%.

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 much of the 2025.

Ontario housing market update

For the year, home sales in Ontario are down 16.6% and the average price is down 3.5%, according to the Ontario Real Estate Association.

Lower prices aren’t bad news for buyers. Neither is a bigger supply of available homes: New listings in May grew 10.4% compared to May 2024, and the overall number of active listings grew 21.7% compared to last May — the highest in more than a decade, according to OREA.

Despite those buyer-friendly trends, Ontario home sales continue to lag behind last year’s numbers. Compared to May 2024, residential sales activity was down 6.7% and the average residential price fell 3.6%.

Ontario home buyer resources

Ontario first-time home buyer programs

Areas including Waterloo, the County of S imcoe, 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

Home value

City of Toronto

$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.

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Frequently asked questions

Will Ontario mortgage rates go down in 2025?

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.

How Ontario lenders determine mortgage rates

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.

How to qualify for a lower mortgage rate in Ontario

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.