Ontario

Best mortgage rates in Ontario: compare today's fixed and variable offers

Q: What is the difference between fixed and variable rates in Ontario?

A fixed rate is locked for the term (e.g., 5 years) - your payment never changes. A variable rate moves with the Bank of Canada's prime rate, which can mean lower payments if rates fall or higher payments if they rise. Fixed rates offer predictability; variable rates carry more risk but historically outperform fixed over long amortizations.

Compare today's best mortgage rates in Ontario for purchases, renewals, refinances, and home equity scenarios. See indicative fixed and variable offers, what type of borrower typically qualifies, and when a lower rate may come with trade-offs in penalties, portability, or flexibility.

Rates updated daily · Displayed rates are indicative and may change based on down payment, insurance status, property type, and borrower profile.

Live rates

Ontario mortgage rates

Transaction

Purpose

Province

Purchase price

Down payment

$ 20%

Amortization

Term

Fixed

Variable

Current market rates are shown below as a quick reference. For a personalized quote based on your details, contact us or review our current Ontario rates overview.

Typical Canadian mortgage rates - Ontario, owner-occupied purchase (indicative, updated regularly)
Term	Fixed rate	Variable rate	Note
1 year	~4.69%	-	Short commitment
2 year	~4.39%	-	Rate reset opportunity
3 year	~3.94%	~3.55%	Mid-term flexibility
4 year	~4.39%	-
5 year	~4.04%	~3.44%	Most popular term

Rates are indicative and change daily. Speak with a Frank advisor for live lender pricing tailored to your profile.

Rates are from our lender network and shown for informational purposes only. Your actual rate depends on your borrower profile and selected product. Speak with a Frank advisor for a personalized quote.

Rate trade-offs

Why a lower rate isn't always a better mortgage

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Break penalties can erase the savings

Fixed-rate mortgages with the lowest advertised rates often use an Interest Rate Differential (IRD) penalty formula. Breaking early can cost tens of thousands — far more than a slightly higher rate at a flexible lender.

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Portability and prepayment restrictions

Some low-rate products restrict how much you can prepay each year or don't allow you to port the mortgage when you move. For homeowners who may sell or upsize, that flexibility is often worth a few basis points.

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Not all lenders serve all situations

The very lowest rate is often only available for insured purchases under $1M with 5–19.99% down. Renewals, refinances, rentals, and purchases over $1M are priced differently — a broker can find the best rate for your actual situation.

Frank shows you rates from multiple lenders alongside the full terms — so you can compare the total cost of the mortgage, not just the headline number. Talk to an advisor →

Rate factors

What affects mortgage rates in Ontario?

No single factor determines your rate. Lenders assess a combination of property and borrower characteristics. Here's what matters most:

Down payment and insurance

Insured mortgages (under 20% down, under $1M) typically qualify for the lowest fixed rates because CMHC insures the lender's risk. Uninsured mortgages carry a small premium.

Mortgage purpose

Purchase rates are generally lowest. Renewal rates depend on switching costs and lender appetite. Refinances are always uninsured and are priced accordingly.

Fixed vs. variable term choice

Variable rates float with prime; fixed rates are locked for the term. In a stable or falling rate environment, variable has historically outperformed over the full amortization.

Property type and use

Owner-occupied single-family homes receive the best rates. Rentals, cottages, and condos under certain thresholds may attract rate premiums.

Credit, income, and debt ratios

A credit score above 680 unlocks A-lender pricing. Your GDS (gross debt service) and TDS (total debt service) ratios must clear stress-test thresholds set by the regulators.

Amortization length

Insured mortgages are capped at 25 years (or 30 years for first-time buyers on new builds as of August 2024). Longer amortizations lower monthly payments but increase total interest paid.

Rate strategy

Fixed vs. variable in Ontario right now

With prime at 4.45% and the Bank of Canada in an easing cycle, both options have merit depending on your timeline and risk tolerance.

Fixed rate - predictability

Rate and payment locked regardless of BoC decisions
Better for tight budgets or first-time buyers
Protects against rate increases mid-term
Higher break penalty (interest rate differential)

Variable rate - flexibility

Mortgage cost drops if prime rate declines
Suitable if you expect rates to continue falling
Penalty is typically 3 months' interest only
If rates increase, mortgage cost will increase

Not sure which is right for you? A Frank advisor can model both scenarios for your specific purchase price, income, and timeline. Book a free consultation.

Book a free consultation.

Ontario programs

Ontario first-time buyer programs

Ontario first-time buyers have access to several federal and provincial programs that can reduce upfront costs significantly.

First Home Savings Account (FHSA)

Contribute up to $8,000/year (lifetime max $40,000) and deduct contributions from income. Withdrawals for a qualifying first purchase are tax-free. Combines the best features of an RRSP and TFSA.

RRSP Home Buyers' Plan (HBP)

Withdraw up to $60,000 tax-free from your RRSP ($120,000 combined for two buyers) toward a first purchase. Must repay over 15 years or the amount becomes income.

Ontario Land Transfer Tax Rebate

Ontario first-time buyers receive a rebate of up to $4,000 on Ontario LTT. Toronto buyers receive an additional rebate of up to $4,475 on Toronto's municipal LTT.

Closing costs

Ontario Land Transfer Tax calculator

Estimate your Ontario LTT based on purchase price. First-time buyers can apply the provincial rebate (up to $4,000) and Toronto buyers can add the municipal LTT.

Select province

Purchase price

LTT

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Total land transfer tax after rebates

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Rate brackets

Purchase price range	Marginal rate

FAQ

Ontario mortgage rate - common questions

What is a good mortgage rate in Ontario right now?

A competitive 5-year fixed rate in Ontario typically falls in the mid-to-high 4% range for insured borrowers (less than 20% down) and slightly higher for uninsured mortgages. Variable rates are tied to prime (currently 4.45%) minus a lender spread. The best rate depends on your down payment, credit, income, and mortgage purpose. Frank shows you rates from multiple lenders - not just one.

What is the difference between fixed and variable rates in Ontario?

A fixed rate is locked for the term - your payment never changes. A variable rate moves with the Bank of Canada's prime rate, which can mean lower payments if rates fall or higher payments if they rise. Fixed rates offer predictability; variable rates carry more risk but historically outperform fixed over long amortizations.

How do I get the best mortgage rate in Ontario?

Work with a mortgage broker who shops multiple lenders simultaneously. Keep your credit above 680, minimize other debts, and have at least 5% down. For insured purchases under $1M, insured rates are lowest. Frank is a licensed Ontario broker that charges no fee on prime (A) mortgages.

Does Frank charge a fee for Ontario mortgages?

No. Frank charges $0 for prime (A-lender) mortgages and alternative (B-lender) mortgages in Ontario. Frank is compensated by the lender. We only charge fees when a private mortgage is necessary.

Related resources

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