Ontario Mortgage Rates
🏦 On December 10, 2025, the Bank of Canada held its overnight rate at 2.25%. A static overnight rate means variable mortgage rates will stay at their current levels until at least January 28, 2026, when the Bank is scheduled to make its next overnight rate decision. Read more about the Bank’s rate hold here.
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Ontario mortgage rate update: December 2025
December should be a month of stability for mortgage rates in Ontario.
On December 10, the Bank of Canada will announce its next overnight rate decision, which could directly impact variable mortgage rates. With the Canadian economy showing signs of resilience, the Bank is widely expected to hold the overnight rate at 2.25%.
If the Bank holds, variable mortgage rates will stay at their current levels until at least January 28, 2026, when the Bank is scheduled to make its first rate decision of next year.
Until then, the lowest variable mortgage rates in Ontario will hover around 3.5%.
Fixed mortgage rates aren’t likely to move much this month, either. Government bond yields, which determine fixed rates, haven’t shifted much in the last several weeks. Without a sustained rise or fall in bond yields, there’s no reason for lenders to significantly adjust their fixed rates.
Unless the bottom drops out of the economy, the lowest fixed rates in Ontario should stay around 3.7% for the rest of the year.
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 December 2025, some mortgage brokers in Ontario are offering fixed rates for under 3.7%, though they're well over 4% at most banks. 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.
Ontario housing market update
The average residential home price in Ontario dropped 5.2% compared to October 2024, according to the Ontario Real Estate Association. The average October price in the province was $833,376 while the national average price was $690,195 — a 1.1% decline — during the same period.
Year-over-year home sales were down 5.7%, a slightly bigger drop than the change to the national average, which fell 4.3%.
As sales and prices fell, new listings jumped 5.6% compared to October 2024.Home buyers may see these conditions, especially when paired with last month’s falling variable mortgage rates, as promising enough to make a move — unless tightening budgets and economic jitters are too much to overcome.
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 3.7% and 4.25% well into 2026.
How do Ontario lenders determine mortgage rates?
How do 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 do I qualify for a lower mortgage rate in Ontario?
How do I 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.
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Clay Jarvis
Clay Jarvis