Overview
Ontario mortgage rates in late August 2025 are generally ranging from 3.89% to 4.71% for 5-year fixed terms at leading lenders, with some brokers offering even slightly lower rates, particularly for insured mortgages. Variable rates are typically in the 3.95% to 4.67% range. Rates can differ depending on lender type, down payment, and whether the mortgage is insured.
Current Mortgage Rates in Ontario (August 2025)
Best Available Rates
| Term | Best Rate (High-Ratio/Insured) | Best Rate (Conventional/Uninsured) |
|---|
| 5-Year Fixed | 3.89% - 4.04% | 4.19% - 4.71% |
| 5-Year Variable | 3.95% | 4.35% - 4.67% |
| 3-Year Fixed | 3.64% - 4.77% | 4.19% - 4.77% |
- Big 5 Banks discounted 5-year fixed rates are typically between 4.19% and 4.72% (CIBC has the lowest at 4.19% for insured).
- Variable rates track the current prime rate of 4.95%. Lenders offer variable rates at prime minus a discount, commonly yielding rates around 3.95% to 4.67%.
- Brokerages and online lenders often undercut big banks, offering insured 5-year fixed rates as low as 3.89%.
- 3-year fixed rates are popular among Ontario buyers and are available from 3.64% up to 4.77% depending on lender and mortgage type.
Major Bank Discounted Rates (as of August 25, 2025)
| Bank | 5-Year Fixed (Insured) | 5-Year Fixed (Uninsured) | 5-Year Variable (Insured) | 5-Year Variable (Uninsured) |
|---|
| BMO | 4.41% | 4.67% | — | — |
| CIBC | 4.21% | 4.56% | — | — |
| National | 4.43% | 4.63% | — | — |
| RBC | 4.42% | 4.72% | 4.55% | 4.55% |
| Scotiabank | — | — | 4.35% | — |
| TD | 4.71% | 4.71% | — | — |
Posted rates are higher and rarely represent what most qualified borrowers pay.
Key Market Insights
- Ontario's mortgage market is highly competitive, with many lenders, brokers, and credit unions offering a wide range of rates.
- The Bank of Canada’s overnight rate is currently 2.75%, and the prime rate is 4.95%.
- Fixed rates have risen due to elevated bond yields, while variable rates remain tied to the prime lending rate.
- Spring and summer months tend to be the busiest for new mortgages and renewals, with the best promotional offers often found in March–May.
- Average new mortgage sizes in Ontario are among the highest in Canada, reflecting higher home prices in many regions.
Government Programs and Incentives
- First-Time Home Buyer Incentive (FTHBI): Shared equity program for first-time buyers, providing up to 10% of a home’s purchase price as a down payment.
- Home Buyers’ Plan (HBP): Allows first-time buyers to withdraw up to $35,000 from their RRSPs tax-free for a home purchase.
- Land Transfer Tax Rebates: Ontario and Toronto offer rebates for first-time buyers—up to $4,000 provincially, and up to $4,475 in Toronto.
Provincial Variations and Regulations
- Ontario mortgage rules align with federal standards, but provincial and municipal land transfer taxes and rebates may apply.
- Mortgage insurance is required for down payments under 20%, with premiums set by CMHC or private insurers.
- Ontario-specific programs and rebates can significantly reduce upfront closing costs for first-time buyers.
First-Time Homebuyer Programs (Ontario)
- Ontario Land Transfer Tax Rebate: Up to $4,000 for first-time buyers.
- Toronto Municipal Land Transfer Tax Rebate: Up to $4,475 for first-time buyers within the City of Toronto.
- Federal First-Time Home Buyer Incentive and Home Buyers’ Plan as described above.
Actionable Next Steps and Recommendations
- Compare rates from multiple sources, including banks, brokers, and online lenders, to secure the lowest available rate.
- Use a comprehensive platform like theratefinder to easily compare and apply for the best mortgage rates from top Canadian lenders for residential, commercial, and construction loans. Theratefinder offers a sophisticated multi-step application process and personalized solutions—start your application at theratefinder.ca/onboarding/email for tailored advice and competitive offers.
- First-time buyers: Take advantage of government rebates and programs to reduce your upfront costs.
- Consider your risk tolerance: Fixed rates offer payment stability, while variable rates may yield savings if rates trend lower over your term.
- Consult a mortgage professional for personalized advice, especially if your situation involves self-employment, non-traditional income, or complex credit.
In summary: Ontario mortgage rates in August 2025 are competitive, with best 5-year fixed rates for insured mortgages around 3.89%–4.04% and variable rates starting near 3.95%. First-time buyers can benefit from both federal and provincial programs. For the most competitive and personalized mortgage options, start your application with theratefinder.