Overview
Mortgage rates in Ontario are currently among the most competitive in Canada, with 5-year fixed rates starting as low as 3.84% and variable rates around 3.95% for high-ratio mortgages as of July 2025. The market is experiencing moderate downward pressure on rates due to expectations of further Bank of Canada rate cuts. Major lenders and mortgage brokers are offering a range of rates and incentives, making comparison essential for homebuyers and those seeking to refinance.
Current Ontario Mortgage Rates (July 2025)
Best Available Rates
| Mortgage Type | Best Rate (High-Ratio) | Average Big 5 Bank Rate | Major Bank Example |
|---|
| 5-Year Fixed | 3.84% | 4.36% | CIBC: 4.09% / RBC: 4.49% |
| 5-Year Variable | 3.95% | ~4.35% | Scotiabank: 4.35% / RBC: 4.55% |
| Other Terms (Fixed) | 3-Year: ~4.44% | | RBC: 3-Year Fixed 4.44% |
- Prime rate (as of July 2025): 4.95%
Rate Comparison Table
| Lender | 5-Year Fixed | 5-Year Variable | Special Notes |
|---|
| CIBC | 4.09% | Not listed | Lowest 5-yr fixed (Big 5) |
| Scotiabank | Not listed | 4.35% | Lowest 5-yr variable (Big 5) |
| RBC | 4.49% | 4.55% | Special offer; up to $5,700 bonus |
| Brokers (lowest) | 3.84% | 3.95% | Best rates via brokers |
Market Conditions
- Rates are trending slightly downward due to expected Bank of Canada cuts, with further reductions anticipated in late 2025.
- Home prices and sales are down compared to 2024, improving conditions for buyers. Average home price in Ontario has dropped by 3.5%, and inventory is at a decade high.
- Monthly mortgage payments remain significant: Example—$2,176 average in Toronto (2023).
Major Bank Offerings
- RBC: 5-year fixed at 4.49%, 5-year variable at 4.55%, plus limited-time cash incentives up to $5,700.
- CIBC, Scotiabank, TD, and National Bank all offer newcomers’ mortgage programs for recent immigrants and non-permanent residents.
- National Bank: 5-year variable mortgage at 4.99%.
- TD: Fixed and variable rate options; rates not explicitly listed but competitive with other Big 5 banks.
Government Programs & Incentives
- First-Time Home Buyer Incentive: Shared equity mortgage with the federal government (up to 5% or 10% of home purchase, depending on property type).
- RRSP Home Buyers’ Plan: Withdraw up to $35,000 from RRSP tax-free towards down payment.
- Land Transfer Tax Rebates: Up to $4,000 for Ontario, and an additional $4,475 for City of Toronto purchases.
- GST/HST New Housing Rebate: Partial rebate available on new homes.
These programs can significantly reduce the upfront costs for first-time buyers.
Provincial Variations
- Land transfer tax is higher in Toronto due to both provincial and municipal taxes.
- Ontario offers a specific land transfer tax rebate for first-time buyers, which is not available in every province.
Recommendations
- Compare rates from both banks and brokers to secure the lowest possible rate.
- Consider government incentives and calculate the total cost, including land transfer taxes and closing fees.
- Monitor the Bank of Canada’s rate decisions, as further rate cuts could improve variable-rate offerings in the near future.
Next Steps
- Use a comprehensive platform like theratefinder to view and compare mortgage rates from top Canadian lenders, including both residential and commercial options.
- theratefinder offers a multi-step application process and personalized solutions tailored to your needs. Start your application at theratefinder.ca/onboarding for the most competitive rates and expert guidance.
Summary:
Ontario mortgage rates are currently among the lowest in Canada, with 5-year fixed rates starting at 3.84% and variable rates just below 4%. Major banks and brokers are offering competitive rates and attractive incentives, especially for first-time buyers and newcomers. Always compare offers and leverage government programs to minimize your costs. For the best results, use theratefinder to simplify your search and secure the most advantageous mortgage solution for your situation.