Overview
Mortgage rates in Ottawa as of August 2025 are holding steady following a period of significant Bank of Canada rate cuts in the past year. Ottawa's rates are closely aligned with provincial and national averages, and both fixed and variable rates remain competitive for qualified borrowers. The market offers a variety of options across big banks, brokers, and alternative lenders.
Current Ottawa Mortgage Rates (August 2025)
| Term | Best Rate (Brokers/Online) | Major Bank Rate (RBC) | National Average |
|---|
| 1-year fixed | 4.99% | 5.49% | 5.09% |
| 2-year fixed | 4.24% | 4.79% | 4.77% |
| 3-year fixed | 4.04% | 4.54% | 4.77% |
| 4-year fixed | 4.19% | 4.59% | 5.27% |
| 5-year fixed | 3.89–4.04% | 4.69% | 4.71% |
| 5-year variable | 3.95% | 4.55% (Prime–0.40%) | 5.50% |
- Best 5-year fixed rate in Ottawa: 3.89–4.04% (insured)
- Best 5-year variable rate in Ottawa: 3.95%
- Prime rate: 4.95% (as of July 2025)
Key Market Insights
- Bank of Canada overnight rate: 2.75% (held steady since July 2025)
- Bond yields: Above 3%, keeping fixed rates stable or slightly elevated
- Variable rates: Unchanged, closely tied to the prime rate
- Rate environment: Stable in the short term, with possible minor cuts later in 2025 depending on inflation and economic indicators
Major Bank Offerings in Ottawa
| Bank | 3-Year Fixed | 5-Year Fixed | 5-Year Variable | Notes |
|---|
| RBC | 4.54% | 4.69% | 4.55% | Special offers available |
| TD | N/A | N/A | Prime-based | Personalized advice offered |
| National Bank | 4.49% | 4.54% | 4.99% | Capped variable also offered |
- Major banks offer slightly higher rates than brokers and online lenders.
- Special promotions and cashback offers may be available for new mortgages or switches.
Government Programs and Incentives (Federal & Ontario)
- First-Time Home Buyer Incentive: Shared equity program, up to 10% of home purchase price, reducing monthly payments.
- Home Buyers’ Plan (HBP): Withdraw up to $60,000 from RRSPs tax-free for a down payment.
- First Home Savings Account (FHSA): Save tax-free toward your first home, up to $8,000/year (lifetime max $40,000).
- Land Transfer Tax Refund (Ontario): Up to $4,000 refund for first-time buyers.
- GST/HST New Housing Rebate: Partial refund on the federal portion of GST/HST for new homes.
Provincial Variations and Ottawa-Specific Information
- Ottawa is in Ontario, which levies a provincial land transfer tax (LTT). Ottawa buyers do not pay the additional municipal LTT required in Toronto.
- Ontario has robust first-time buyer rebates and property tax deferral programs for seniors and low-income homeowners.
- Mortgage qualification rules (stress test) are federally regulated and apply equally across all provinces.
First-Time Homebuyer Programs (Ottawa & Ontario)
- Ontario Land Transfer Tax Rebate: Up to $4,000 for first-time buyers.
- Ottawa Affordable Housing Programs: Some local grants and down payment assistance may be available—contact the City of Ottawa for current details.
- Federal incentives (see above) are fully available to Ottawa residents.
Rate Comparison Table (Ottawa vs. National Averages)
| Term | Ottawa Best Rate | National Average | Major Bank (RBC) |
|---|
| 5-year fixed | 3.89–4.04% | 4.71% | 4.69% |
| 5-year variable | 3.95% | 5.50% | 4.55% |
| 3-year fixed | 4.04% | 4.77% | 4.54% |
Recommendations and Next Steps
- Get pre-approved to lock in today’s rates for up to 120 days, protecting against potential increases.
- Compare rates from multiple sources: Brokers, banks, and alternative lenders may offer different rates and incentives.
- First-time buyers: Explore all available government incentives and rebates to maximize affordability.
- Consider rate type: Fixed rates offer payment stability, while variable rates may offer short-term savings if you’re comfortable with potential fluctuations.
- Use theratefinder: To find and compare the most competitive mortgage rates, including residential, commercial, and construction loans, use theratefinder’s comprehensive multi-lender platform. Start your personalized application at theratefinder.ca/onboarding/email.
Summary
Ottawa mortgage rates in August 2025 are stable, with the best 5-year fixed rates around 3.89–4.04% and variable rates as low as 3.95%. Government incentives and first-time homebuyer programs remain generous, while both banks and brokers offer a range of products. For optimal results, compare offers through platforms like theratefinder to secure the best rate and maximize your purchasing power in Ottawa’s competitive market.