Overview
Ottawa’s mortgage market in July 2025 offers competitive rates, with both fixed and variable options stabilizing after a series of Bank of Canada rate cuts. Ottawa remains more affordable than larger cities like Toronto, and homebuyers benefit from a strong local economy and moderate home price-to-income ratios.
Current Mortgage Rates in Ottawa, Ontario
As of July 14–15, 2025, these are the best available rates for prime borrowers in Ottawa:
| Term | Type | Best Rate (%) | Notes |
|---|
| 5-year | Fixed | 3.84 | Leading rate from brokers |
| 5-year | Variable | 3.95 | Best available |
| 3-year | Fixed | 3.89 | Big 6 bank |
| 2-year | Fixed | 4.24 | Canadian lender |
| 1-year | Fixed | 4.69 | Insured rate |
- Bank rates from major lenders (e.g., TD, CIBC) are typically higher than rates available through brokers or online platforms.
- Brokers and comparison platforms generally offer the most competitive rates for qualified borrowers.
Market Conditions & Rate Trends
- The Bank of Canada Overnight Rate is currently 2.75% after seven consecutive cuts from June 2024 to March 2025. The prime rate sits at 4.95%.
- Fixed rates are closely tied to Government of Canada bond yields, which have stabilized, limiting further fixed-rate declines in the near term.
- Variable rates will remain stable while the prime rate holds. Any future rate cuts will depend on inflation and economic conditions.
- Ottawa’s affordability: With average home prices around $660,000 and median incomes of $83,000, qualification and down payment requirements are more accessible than in Toronto.
Major Bank Offerings
| Bank | 5-Year Fixed (Special) | 5-Year Variable | Notes |
|---|
| TD | 4.54% | 4.79% | Posted rates, may negotiate |
| CIBC | (Not posted, but typical specials range 4–5%) | (Not posted) | Rates for new mortgages only |
| Desjardins | 4.84% (7-year fixed) | — | Longer-term option |
Banks often post higher rates than brokers or comparison sites. Negotiation or using a broker can lead to better rates.
Provincial Regulations & Ottawa-Specific Considerations
- Ontario’s mortgage regulations apply in Ottawa, with stress test requirements and down payment rules enforced as in the rest of the province.
- Because most Ottawa homes are below $1 million, many buyers can access high-ratio (insured) mortgages with as little as 5–10% down.
- Mortgage insurance is required for down payments under 20% and is available for homes below $1 million.
First-Time Homebuyer Programs
- First-Time Home Buyer Incentive (FTHBI): Shared equity program to reduce monthly payments.
- Home Buyers' Plan (HBP): Withdraw up to $60,000 from RRSPs tax-free to buy a first home.
- Land Transfer Tax Refund: Ontario provides up to $4,000 for first-time buyers.
- Ottawa-specific grants or programs may also be available; check with the City of Ottawa or your mortgage advisor.
Rate Comparison Table
| Provider/Platform | 5-Year Fixed | 5-Year Variable | 3-Year Fixed | 7-Year Fixed |
|---|
| Leading Broker/Online | 3.84% | 3.95% | 3.89% | 4.84% |
| MortgageBrokers.ca | 4.14% | 4.04% | 4.09% | 5.24% |
| TD Bank (posted) | 4.54% | 4.79% | 4.34%* | 5.24%* |
| CIBC (specials) | ~4–5% | ~4–5% | ~4–5% | n/a |
*Estimated from available specials; actual rates may vary.
Actionable Next Steps
- Compare rates across multiple providers: Use leading platforms like theratefinder, which offers a multi-step process to match you with competitive rates from top Canadian lenders for residential, commercial, and construction loans.
- Get pre-approved: Lock in today’s rate for up to 120 days to protect against market fluctuations.
- Gather documentation: Proof of income, down payment, and credit history will be required.
- Explore first-time buyer incentives if eligible.
- Start your application at theratefinder.ca/onboarding for a personalized mortgage solution tailored to your needs and access to the most competitive rates in Ottawa.
Summary
Ottawa mortgage rates are among the most competitive in Ontario, with 5-year fixed rates as low as 3.84% and variable rates starting at 3.95% for qualified borrowers. Stability in rates is expected through the coming months, offering a favourable market for both new buyers and those renewing. For the best results, compare rates using platforms like theratefinder and take advantage of government incentives for further savings.