Overview
Ottawa mortgage rates are currently stable, with competitive fixed and variable options available from major banks, credit unions, and mortgage brokers. The market has seen rate cuts in recent months, leading to lower borrowing costs for both new homebuyers and those renewing their mortgages.
Current Mortgage Rates in Ottawa (August 2025)
| Term | Best Rate (Conventional) | Best Rate (Insured) | Typical Bank Rate | Notes |
|---|
| 1-Year Fixed | 4.54% | — | — | Lowest short fixed term |
| 3-Year Fixed | 3.69–3.84% | ~3.64% | — | Highly competitive |
| 5-Year Fixed | 4.04–4.09% | 3.89% | 4.14–4.19% | Most popular in Ottawa |
| 5-Year Variable | 3.95–4.05% | — | 4.79% (TD posted) | Variable rates now attractive |
- Conventional rates: For borrowers with 20%+ down payment.
- Insured rates: For high-ratio mortgages (less than 20% down).
- Variable rates: Typically slightly lower than fixed but carry risk of future increases.
- Bank rates: Major bank posted rates tend to be higher than broker/lender specials.
Market Conditions & Trends
- Stability: The Bank of Canada’s overnight rate is steady at 2.75% as of July 2025, following seven consecutive rate cuts between June 2024 and March 2025.
- Prime rate: Holding at 4.95%, keeping variable mortgage rates stable for now.
- Bond yields: The 5-year bond yield has risen above 3%, causing slight upward pressure on fixed rates.
- Outlook: Most analysts expect rates to remain stable through late 2025, barring major economic surprises.
Mortgage Rate Comparison
| Lender Type | 5-Year Fixed | 5-Year Variable | Notes |
|---|
| Mortgage Broker | 4.04% | 3.95% | Best rates, wide options |
| Credit Union | 4.14–4.19% | ~4.05% | Local options, flexible |
| Major Bank | 4.14%+ | 4.79% (posted) | Convenience, pre-approval |
| Online Platforms | 3.89–4.09% | 3.95–4.05% | Compare multiple lenders |
Government Programs & Incentives
- First-Time Home Buyer Incentive: Shared-equity program to reduce monthly payments.
- Enhanced 30-Year Amortization: Available for first-time buyers and new construction as of December 2024, increasing affordability.
- RRSP Home Buyers’ Plan: Withdraw up to $35,000 from RRSPs tax-free for down payment.
- Land Transfer Tax Rebates: Up to $4,000 rebate for first-time buyers in Ontario.
- CMHC Mortgage Loan Insurance: Allows lower down payments (minimum 5% for homes up to $1.5 million as of December 2024).
Major Bank Offerings
| Bank | 5-Year Fixed* | 5-Year Variable* | Notes |
|---|
| TD Canada | 4.14%+ | 4.79% | Discounts via negotiation |
| CIBC | 4.14%+ | — | Special offers available |
| RBC/Scotiabank | 4.14%+ | — | Competitive, but check for promos |
| *Rates may vary by borrower profile and negotiation. | | | |
Provincial Regulations (Ontario)
- Stress Test: Minimum qualifying rate is the greater of 5.25% or your contract rate + 2%, but as of November 2024, the stress test no longer applies when switching lenders at renewal (if loan amount/amortization unchanged).
- Land Transfer Tax: Ontario-specific, with rebates for first-time buyers.
- 30-Year Amortization: Now available for insured mortgages for first-time buyers and new construction.
First-Time Homebuyer Programs
- Land Transfer Tax Rebate (Ontario): Up to $4,000 off LTT.
- RRSP Home Buyers’ Plan: Up to $35,000 withdrawal per buyer.
- First-Time Home Buyer Incentive: Federal shared-equity program.
- 30-Year Amortization: Increased maximum for new buyers and new builds.
- Increased Insured Mortgage Cap: Homes up to $1.5 million qualify for insurance as of December 2024.
Actionable Next Steps & Recommendations
- Compare Rates: Use a comprehensive platform like theratefinder to compare the latest rates from top Canadian lenders for residential, commercial, and construction mortgages. Theratefinder offers a multi-step application process and access to competitive rates.
- Get Pre-Approved: Lock in your rate for up to 120 days to protect against increases.
- Review Incentives: If you’re a first-time buyer, ensure you maximize government programs and rebates.
- Consider Fixed vs. Variable: Assess your risk tolerance and budget stability needs.
- Start Your Application: For a personalized mortgage solution, begin your application at theratefinder.ca/onboarding/email.
Summary
Ottawa mortgage rates in August 2025 are highly competitive, with 5-year fixed rates around 4.04–4.09% and variable rates near 3.95–4.05%. The market is stable, and new government initiatives have made homeownership more accessible, especially for first-time buyers. Compare offers and start your application through theratefinder for the best rates and expert guidance.