Balanced Market
Mortgage Rates in Ontario
Ontario is Canada's most populous province and its largest mortgage market, with home prices ranging from under $400K in smaller cities to over $1.2M in Toronto.
Avg Home Price
$820,000
Benchmark Price
$780,000
Year-Over-Year
↓ 2.1%
Best 5-Yr Fixed
4.89%
Today's Best Rates in ON
| Rate Type | Best Rate |
|---|---|
| 5-Year Fixed | 4.89% |
| 5-Year Variable | 5.45% |
| 3-Year Fixed | 4.74% |
| 2-Year Fixed | 5.1% |
| HELOC | 6.2% |
*Based on $500K mortgage, 25-year amortization, Canadian semi-annual compounding. Last updated: May 25, 2026.
Land Transfer Tax in Ontario
Up to $4,000 provincial LTT rebate + up to $4,475 Toronto LTT rebate
First-Time Buyer Programs in Ontario
- First Home Savings Account (FHSA)
- Ontario Land Transfer Tax Rebate
- Toronto Land Transfer Tax Rebate
- CMHC Mortgage Insurance
- Home Buyers Plan (RRSP)
Mortgage Rates by City in Ontario
Frequently Asked Questions
What is the average mortgage rate in Ontario?
The best 5-year fixed mortgage rate in Ontario is currently around 4.89%, though rates vary by lender, credit score, and down payment size.
How much do I need for a down payment in Ontario?
In Ontario, you need a minimum 5% down payment for homes under $500K, 10% on the portion between $500K-$999K, and 20% for homes $1M and above.
Is there a land transfer tax in Ontario?
Yes, Ontario charges a provincial land transfer tax. Toronto buyers also pay a municipal land transfer tax. First-time buyers can receive rebates of up to $4,000 provincially and $4,475 in Toronto.
What is the mortgage stress test in Ontario?
Canadian lenders must qualify you at the higher of your contract rate plus 2%, or 5.25%. This applies to all insured and uninsured mortgages in Ontario.
Should I choose a fixed or variable rate mortgage in Ontario?
In the current rate environment, many Ontario buyers are choosing fixed rates for predictability. Variable rates may save money if the Bank of Canada cuts rates further in 2025.
What is the First Home Savings Account (FHSA)?
The FHSA lets first-time buyers save up to $40,000 tax-free for a home purchase. Contributions are tax-deductible and withdrawals for a qualifying home purchase are tax-free.
How do mortgage brokers work in Ontario?
Ontario mortgage brokers are licensed by FSRA and shop your application to multiple lenders to find the best rate. Their service is typically free to borrowers as lenders pay the broker commission.
What credit score do I need for a mortgage in Ontario?
Most lenders require a minimum credit score of 680 for the best rates. Some lenders will approve mortgages with scores as low as 600, but at higher rates.
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