Ontario Mortgage Rates
Editor’s Note: The Bank of Canada has lowered its overnight rate to 2.25%, a decrease of 0.25 percentage points. Most lenders will advertise new, lower variable mortgage rates on Thursday, Oct. 30. In its announcement, the BoC stated “If inflation and economic activity evolve broadly in line with the October projection, Governing Council sees the current policy rate at about the right level to keep inflation close to 2%.” Read more about the cut and how it could affect home buyers.
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Ontario mortgage rate update: October 2025
The economy might be a mess, but it’s driving down mortgage rates in Ontario.
On October 29, in response to sluggish economic growth, the Bank of Canada lowered its overnight lending rate for the fourth time this year. Shortly after the 25-basis point cut was announced, Canadian lenders lowered their variable mortgage rates.
The Bank accompanied its rate cut with a statement that said rates are “at about the right level” to usher Canada through this period of financial uncertainty, so variables might be as low as they’re going to get in 2025.
As of October 30, some mortgage brokerages in Ontario are offering variable rates for around 3.5%. They’re generally above 4% at Canada’s biggest banks.
Fixed mortgage rates dipped toward the end of October, but it’s unlikely they’ll keep decreasing. Government bond yields, which lenders use to determine their fixed rate offers, shot up after the Bank of Canada’s latest rate decision. If bond yields continue rising, lenders may be forced to increase their fixed rates.
As of October 30, the lowest three-year fixed and five-year fixed mortgage rates available from brokers in Ontario are around 3.7%. Fixed rates of 3.8% or higher are much more common.
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 October 2025, some mortgage brokers in Ontario are offering fixed rates for under 3.8%, though fixed rates at most banks are well over 4%. The lowest variable rates are around 3.5%.
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
If the Bank of Canada lowers its overnight rate before the end of 2025, variable mortgage rates will also decrease. Fixed mortgage rates will likely continue hovering between 3.75% and 4.25% for much of the year.
Ontario housing market update
The average residential home price in Ontario was $828,896 in September — a 2.9% dip compared to a year before, according to the Ontario Real Estate Association.
Ontario home buyers were active in September, as year-over-year home sales in the province were up 7.3%. Even so, the number of home sales were still 2.6% below the five-year September average and 16.8% below the 10-year September average.
Home sellers were even more active: year-over-year new listings were up by 8.5%. The number of new listings is more than 20% above five- and ten-year averages. The total number of active listings in September reached a 15-year high.
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
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
Will Ontario mortgage rates go down in 2025?
Will Ontario mortgage rates go down in 2025?
If the Bank of Canada lowers its overnight rate before the end of 2025, variable mortgage rates will also decrease. Fixed mortgage rates will likely continue hovering between 3.75% and 4.25% for much of the year.
How Ontario lenders determine mortgage rates
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
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.
DIVE EVEN DEEPER
Clay Jarvis