Ontario Mortgage Rates

As of Q2 2026, Ontario’s residential mortgage and HELOC market totalled approximately $1.15 trillion. With such a bustling real estate market comes a multitude of mortgage lenders for homebuyers to choose from. Naturally, Canada’s Big 6 Banks (RBC, TD, Scotiabank, CIBC, BMO, and National Bank) operate in Ontario and are also the largest lenders in the province, holding over 85% of the outstanding mortgages as of April 2026.

However, other lenders continue to account for a meaningful share of new mortgages originated in Canada. According to the Canada Mortgage and Housing Corporation (CMHC)’s mortgage origination data by volume for Q1 2026:

• Credit unions accounted for 11.59%
• Mortgage finance companies, insurance companies, and trust companies accounted for 10.71%
• Mortgage Investment Entities (MIEs) accounted for 7.57%

While that’s still a sizable amount, it’s a marked difference compared to their share of outstanding mortgages.

For more expensive housing markets where it’s harder to afford a home, such as in the GTA, alternative and private lenders in Ontario play a greater role. With the Greater Toronto Area projected to grow by 16.4% to 8.9 million by 2051, and with the GTA estimated to account for 44.2% of Ontario's population by 2051, alternative and private lenders will become more commonplace.

There are also smaller mortgage lenders that specialize in certain customer groups. Wealth One Bank of Canada is a federally regulated bank that focuses on self-employed borrowers, newcomers, and those with foreign income sources.

Home Bank is also a federally regulated bank, with its parent company, Home Trust Company, positioned as an alternative mortgage lender for those with bad credit or self-employment income.

Mortgage Lenders with Branches in Ontario

Digital Mortgage Lenders in Ontario

Market Share by Mortgage Value in Ontario

Private mortgage lenders remain an important alternative for borrowers who may not qualify with traditional lenders. According to FSRA’s report, private lenders accounted for 12.5% of Ontario residential mortgage dollar value in 2024.

Demographics can also affect the type of mortgage lender borrowers use. According to FSRA’s 2024 consumer research, 31% of Ontario consumers who used mortgage brokering services had worked with a broker or agent to obtain a mortgage from a non-traditional lender. This was more common among younger consumers, at 40% for those aged 18 to 34 and 31% for those aged 35 to 54, compared with 13% for those aged 55 and over.

Meanwhile, Teranet found that the Big Five Banks accounted for 65% of first-time homebuyer financing activity in Ontario in the first half of 2024.

Five-year fixed mortgages are popular in Ontario because it offers the perfect balance between predictability and stability in mortgage payments, while not being excessively long. With a five-year fixed mortgage rate, you will be locking your mortgage interest rate and mortgage payments for five years. During this time, your payments and interest rate won't change.

How are 5-year fixed mortgage rates set in Ontario? They follow the 5-Year Government of Canada bond yield, with 5-year fixed mortgage rates generally priced at a spread above the government bond yield. This spread can narrow or widen due to various factors.

Two-year and three-year mortgages are also common, especially after mortgage rates increased dramatically in 2022. One reason for borrowers to choose a short mortgage term is if they think that rates may decrease in the future.

However, for many homeowners, the mortgage renewal process can be a hassle. From comparing rates, setting up appointments, gathering documents, and signing papers, the process can take up time, especially if your mortgage term is only one or two years. Having to renew your mortgage every two years can feel like a burden to some borrowers.

Not having to worry about mortgage rates or renewing for five years gives many homeowners peace of mind. The relative cost of different mortgage terms changes with market conditions, so shorter terms do not always have lower rates than a 5-year term. A 5-year fixed mortgage can still appeal to borrowers who value predictable payments and want more time before they need to renew.

If you’ve got a particularly good deal and are happy with your current mortgage rate, you might decide to lock-in your rate for a longer term. Locking in a rate for 5 years lets you avoid any short-term fluctuations in market interest rates. A 2-year term won’t give you much time to enjoy your interest savings, and it’s possible that interest rates may increase during these two years, meaning that you’ll need to renew again at a higher rate.

As of 2025, Ontario had 3,059 licensed mortgage brokers and 15,158 licensed mortgage agents, according to the Financial Services Regulatory Authority of Ontario (FSRA).

The large number of mortgage brokers in Ontario gives borrowers plenty of options when shopping for a mortgage. According to CMHC’s 2026 Mortgage Consumer Survey, 77% of mortgage consumers researched mortgage options online, and 32% of those who searched online used mortgage broker websites. Mortgage brokers can help borrowers compare products from multiple lenders and may be able to negotiate competitive mortgage rates on their behalf.

DLCG is the parent company of one of Canada’s largest mortgage brokerage networks, Dominion Lending Centres Inc., and trades on the TSX under the ticker “DLCG”. The DLC Mortgage Group has over 9,000 mortgage professionals and originated $84.5 billion in mortgages across Canada in 2025. Its main mortgage brokerage brands are:

• Dominion Lending Centres (DLC)
• Mortgage Architects
• The Mortgage Centre

M3 Financial Group claims to be the largest non-bank mortgage originator in the country. It has over 9,500 mortgage brokers, works with more than 133 lenders, and funds over $75 billion in mortgages annually on a trailing 12-month basis. M3 Group’s main mortgage brokerage brands are:

• Verico
• Invis
• Mortgage Intelligence
• Mortgage Alliance
• Multi-Prêts Mortgages

Some other major mortgage brokerages in Ontario are:

• Butler Mortgage
• Centum Financial Group
• CanWise Financial
• intelliMortgage
• Northwood Mortgage

Chartered banks, including banks in Ontario, are federally regulated. Federal regulators include the Financial Consumer Agency of Canada (FCAC) and the Office of the Superintendent of Financial Institutions (OSFI). Banks that are members of the Canadian Deposit Insurance Corporation (CDIC) will also need to follow CDIC’s by-laws.

In Ontario, credit unions and mortgage brokerages are regulated by the Financial Services Regulatory Authority of Ontario (FSRA).

Private mortgage lenders do not need to be licensed in Ontario if they source through a licensed mortgage broker, however private lenders dealing directly with the public will need to be licensed.

Ontario credit unions are also regulated by the Financial Services Regulatory Authority (FSRA). Deposits at Ontario credit unions are insured through the Deposit Insurance Reserve Fund (DIRF), which is administered by FSRA.

It’s important to check to see if your mortgage broker or agent is licensed. You can check to see if they are licensed by searching for your broker or agent on FSRA’s website.

Ontario mortgage brokerages, brokers, and agents are regulated under the Mortgage Brokerages, Lenders and Administrators Act, 2006 and its regulations. Brokerages must take reasonable steps to:

• Verify a borrower’s identity,
• ensure mortgages they recommend are suitable, and
• disclose material risks, fees, and conflicts of interest.

Required disclosures generally need to be provided at least two business days before the borrower signs the mortgage. (FSRA)

For mortgages of $400,000 or less, brokerages cannot require or accept an upfront payment or deposit for future services. Mortgage records generally need to be retained for at least six years, while reverse mortgages require borrowers to obtain independent legal advice. For mortgage terms longer than five years, the federal Interest Act generally allows individual borrowers to repay the mortgage after five years with no more than three months’ interest.

Ontario’s mortgage delinquency rate has increased from recent lows. In Q4 2025, 0.27% of Ontario mortgages were 90 or more days delinquent, up from 0.20% a year earlier and above the national rate of 0.24%, according to CMHC.

Missing mortgage payments can eventually lead to a power of sale. Under Ontario’s Mortgages Act, where a mortgage contains a power-of-sale provision, notice generally cannot be given until the default has continued for at least 15 days, and the property cannot be sold for at least 35 days after notice is given.

Ontario is Canada’s largest mortgage market, with approximately $1.15 trillion in residential mortgages and HELOCs as of Q2 2026.

Mortgage payments make up a large amount of Ontarians budgets. Mortgage payments have also risen considerably in recent years. According to CMHC, the average monthly scheduled mortgage payment in Toronto was $2,584 in Q4 2025, up from $1,866 in 2021. In Windsor, the average payment increased from $1,082 in 2021 to $1,498 in Q4 2025.

While Windsor mortgage rates can differ from Toronto mortgage rates, much of the difference in monthly payments reflects Toronto’s higher home prices and mortgage balances. For comparison, the average monthly scheduled mortgage payment across Canada was $1,852 in Q4 2025.

Ontario Average Monthly Mortgage Payment by City

In Ontario, the average home sold price was $ in September 2026. If you're looking to buy a house in Ontario with a home purchase price of $, then your minimum down payment would need to be %. This is because the minimum down payment is 5% on the first $500,000 and 10% on the portion between $500,000 and $1.5 million. In this case, your down payment would need to be at least $.

With the minimum down payment, the base mortgage would be about $NaN. A $NaN CMHC insurance premium would apply, for making a down payment less than 20%, which will be added to the mortgage amount. To put this into perspective, you would need to have a household income of at least $NaN with no other monthly expenses in order to afford a mortgage for the average home price in Ontario.

If you make a down payment of 20% to avoid the cost of the CMHC insurance premium, your down payment would need to be at least $NaN. Your mortgage amount would then be $NaN.

Looking at CMHC data on the average value of a new mortgage, the average new mortgage in Ontario was $441,394 in Q4 2025. In comparison, the average new mortgage in Toronto was $521,496. Other areas of the province were significantly lower. For example, the average new mortgage amount in Greater Sudbury was $318,439.

Ontario Average New Mortgage Amount by City

You might be wondering why the average home price in Ontario is $ while the average new mortgage amount in the province was only $441,394. That’s because most mortgage borrowers in Ontario make a down payment that is larger than 20% for a new mortgage. In this case, these numbers suggest that the average down payment would be NaN%.

Looking at Q2 2026 reports from major banks gives us an idea of loan-to-value ratios for newly originated uninsured mortgages in Ontario. A lower loan-to-value (LTV) ratio means the borrower has more equity in the property.

For example, Scotiabank’s average LTV for newly originated uninsured residential mortgages in Ontario was 60.8% in Q2 2026, equivalent to 39.2% equity. Other major banks reported similar figures, with CIBC at 65%, TD at 69%, and RBC at 71%.

Ontario Average Mortgage LTV at Origination in Q2 2026

Toronto’s housing market is expensive, which means that your average Toronto mortgage will be larger than those seen in the rest of the province.

Looking at Toronto housing market data, the average sold price in September 2026 was $. You will need to make a down payment that is at least %, or $. This would make a required mortgage of $NaN.

The table below shows the minimum required down payment and mortgage amount for the average detached home, semi-detached home, townhouse, and condo apartment in Toronto for September 2026. For homes below $1.5 million, the required down payment is less than 20%.

Toronto Average Required Mortgage and Down Payments

Comparing mortgage rates in Ontario is especially important due to Ontario mortgages being generally large. A small difference in Ontario mortgage rates can result in you paying thousands of dollars more on your mortgage.

For example, let’s look at the impact of a mortgage rate that is 100 basis points (1%) higher than a rate offered by another Ontario mortgage lender on an $800,000 mortgage.

With a fixed mortgage rate of 4% for five years, the total interest paid over the five years would be $148,921 while your monthly mortgage payment would be $4,208. At an Ontario mortgage rate of 5%, your total interest cost over the 5-year term would be $187,230, while your monthly mortgage payment increases to $4,653.

This shows that the difference between a 4% mortgage rate and a 5% mortgage rate can mean paying an additional $38,309 in interest over five years. It pays off to get the lowest mortgage rate!

Newcomers to Ontario, including new immigrants, might find it difficult to get a mortgage in Ontario. The largest barrier for newcomers would be their lack of Canadian credit history. That’s why many major banks and lenders offer mortgage programs for Ontario newcomers.

To qualify for many newcomer mortgage programs, you will generally need to be a permanent resident or a non-permanent resident legally authorized to work in Canada. Eligibility requirements vary by lender, and some lender-specific programs are limited to newcomers who have been in Canada for a certain number of years. For CMHC-insured financing, there is no minimum period of residency. Non-permanent residents must also be eligible to purchase residential property under Canada’s rules for non-Canadian buyers.

Many other Ontario mortgage lenders offer special mortgage programs for newcomers. For example, Alterna Savings gives a 0.10% discount off their posted mortgage rate for newcomers getting a mortgage that is larger than $150,000, and a 0.05% discount for mortgages smaller than $150,000. An Ontario mortgage broker can also help newcomers with getting a mortgage.

Ontario mortgage lenders will require you to get mortgage default insurance if you make a down payment that is less than 20%. For some lenders, you might still need insurance even if you make a down payment that is as large as 35%.

CMHC provides mortgage default insurance through their CMHC Newcomers insurance, which has the same CMHC premiums as their regular mortgage insurance. To qualify for CMHC Newcomers, at least one borrower or guarantor must generally have a minimum credit score of 600. If Canadian credit history is limited, CMHC may consider an international credit report, a reference letter from a financial institution in the borrower’s country of origin, or other alternative methods of establishing creditworthiness.

For non-permanent residents from the United States, the CMHC will use an international credit report to obtain their U.S. credit history. For non-permanent residents for other countries and if an international credit report is not sufficient, the mortgage lender may ask the borrower for a letter of reference from a financial institution.

Non-permanent residents can qualify for CMHC-insured financing on 1-to-4-unit properties, provided at least one unit is owner-occupied. For 1- or 2-unit properties, the minimum down payment starts at 5%, while 3- or 4-unit properties require at least 10% down. The purchase must also be permitted under the federal Prohibition on the Purchase of Residential Property by Non-Canadians Act. Permanent residents can purchase properties with up to 4-units, such as rental properties, including non-owner occupied properties.

Some mortgage lenders are only available in Ontario. This is most commonly the case for credit unions, who are provincially regulated. Ontario is home to dozens of provincially regulated credit unions. These include FirstOntario Credit Union, Alterna Savings, DUCA, Meridian Credit Union, and Kawartha Financial Services, a division of Libro Credit Union. Alterna Bank, a subsidiary of Alterna Savings, offers mortgages to all provinces, excluding Quebec.

Founded over 80 years ago, FirstOntario Credit Union has grown to become the sixth largest credit union in Ontario. You will need to be a member of FirstOntario Credit Union in order to be eligible for a mortgage with them. FirstOntario only offers mortgages for properties within Ontario. FirstOntario membership shares cost $5 each. Members 21 years of age or over must have at least five membership shares, with their total shares increasing to at least 30 shares over 25 years. This means that if you were to have a mortgage with FirstOntario for 25 years, you would need to have purchased at least $150 in membership shares.

FirstOntario Credit Union offers high-ratio mortgages for borrowers with less than a 20% down payment, with mortgage insurance provided by a third-party mortgage insurer.

FirstOntario is an active part of the local community, especially in their main servicing regions of Hamilton, Halton, Niagara, and Southwest Ontario. FirstOntario is committed to local football and hockey teams (Hamilton Tiger-Cats and Hamilton Bulldogs), and invests back into the community through the FirstOntario Centre, FirstOntario Concert Hall, FirstOntario Performing Arts Centre St. Catharines, and the FirstOntario Arts Centre Milton.

Kawartha Financial Services, a division of Libro Credit Union Limited, serves more than 58,000 members through 23 branches across Ontario. Kawartha Credit Union merged with Libro Credit Union on January 1, 2026, with Kawartha continuing to operate under the Kawartha Financial Services brand. Together, Libro and Kawartha serve more than 180,000 members through 57 locations across Ontario.

Kawartha Financial Services has given away over $2 million to local community programs, including donations to food banks, local hospitals, shelters, and universities and colleges.

Meridian Credit Union is the largest credit union in Ontario and the second largest in Canada. Meridian has more than 378,000 members and 84 branches across Ontario. Meridian offers mortgages and other financial products to its members, including high-ratio mortgages with mortgage insurance.

Meridian offers Rate Scoops, which are alerts sent a few days before any Meridian mortgage rate changes.

To become a member, you’ll need to purchase one Meridian membership share for $1. Members may also hold up to 1,000 additional membership shares.

Many major banks and lenders offer rental property and investment property mortgages if you're looking to purchase an investment property, such as for generating rental income. The down payment required for a rental property will depend on whether or not you will also be living in the property.

• Owner-occupied 1- or 2-unit property: 5% on the first $500,000 and 10% on the remainder.
• Owner-occupied 3- or 4-unit property: Minimum 10% down.
• Non-owner-occupied 2- to 4-unit rental property: Minimum 20% down.

When applying for a mortgage, your lender may consider rental income when calculating your debt service ratios. Some lenders might only consider 50% of your rental income when adding it to your household income. You may be required to provide form T776 Statement of Real Estate Rentals, provide current lease agreements, or your opinion of current market rent.

If you're looking to purchase a rental property that has more than four units, then you will need to get a commercial mortgage. Applications for commercial mortgages can be more difficult, and commercial mortgage rates can be higher than rates for residential properties with four units or less.

The Ontario Mortgages Act gives certain rights to mortgage borrowers, also referred to as mortgagors.

Some mortgage rights include:

• The borrower has the right to inspect the property title, to receive a copy of the mortgage, and to have possession of the land.
• If the mortgage is in default, the borrower can pay three months interest on the amount in arrear or inform the lender in writing that they will make a payment
• The borrower can ask the lender to send a written statement of arrears and expenses if the borrower is in default
• A mortgage lender cannot disrupt heat, fuel, electricity, food, or water for rental units with the intention of causing the tenant to leave

Refinance mortgage rates can be higher than purchase or switch rates because refinances are generally uninsured and may involve more risk or higher funding costs for lenders. The rate you receive will also depend on the lender and your financial situation.

Common reasons include:

• No mortgage insurance: Many purchase mortgages are insured, which reduces the lender’s risk. Refinances are generally uninsured, so lenders may charge a higher rate.
• Higher loan-to-value (LTV): With a cash-out refinance, you increase your mortgage balance to access home equity for things such as renovations or debt consolidation. A higher LTV can increase the lender’s risk.
• Different lender pricing: Some lenders focus more heavily on purchases or mortgage switches and may price those products more competitively than refinances.
• Borrower circumstances: Your credit score, income, debt levels, property value, and the amount you want to refinance can all affect the rate offered.

Refinance rates are not always higher. Some lenders offer similar or even the same rates for purchases and refinances, so comparing offers from multiple lenders can help you find a better deal.

The lowest mortgage rates in Ontario are often available on insured or insurable mortgages, since mortgage insurance reduces the lender’s risk. However, the rate you qualify for also depends on factors such as your credit score, loan-to-value (LTV), mortgage type, and lender.

To qualify for a CMHC-insured mortgage, you generally need:

• A minimum credit score of 600 for at least one borrower or guarantor
• A maximum Gross Debt Service (GDS) ratio of 39%
• A maximum Total Debt Service (TDS) ratio of 44%
• A home purchase price of less than $1.5 million
• A maximum amortization of 25 years, or up to 30 years for eligible first-time homebuyers and buyers of newly built homes

Mortgage default insurance is required when the down payment is less than 20% and comes with a mortgage insurance premium. Borrowers with at least 20% down may still qualify for competitive rates if their mortgage meets the requirements for an insurable mortgage.

Most mortgages held by major banks are still uninsured. For example, 87% of RBC’s Ontario residential mortgages were uninsured as of Q2 2026, while about 85% of TD’s Ontario residential mortgages were uninsured.

Refinancing your mortgage may make sense if:

• Current Ontario mortgage rates are low enough that your interest savings exceed any penalties and refinancing costs
• You want to access your home equity to borrow additional money

Interest Savings

Refinancing to a lower mortgage rate can reduce your interest costs, but breaking a closed mortgage before the end of its term may result in a prepayment penalty. Other costs can include appraisal, administration, legal, and mortgage discharge fees.

Whether refinancing saves you money will depend on:

• Your current mortgage rate and the new rate
• Your outstanding mortgage balance
• The time remaining in your mortgage term
• Your prepayment penalty and other refinancing costs

Generally, the larger the rate difference and the longer you have remaining in your term, the greater the potential savings. Use our mortgage refinance calculator to compare the potential savings with the cost of refinancing.

To Borrow More Money

You can use a mortgage refinance to borrow money against your home equity. You can generally borrow up to 80% of your home’s value, less your existing mortgage balance.

For example, if your home is worth $1 million and you owe $500,000 on your mortgage, you may be able to refinance up to $800,000 and access up to $300,000 in additional funds.

The money can be used for renovations, debt consolidation, investments, or other large expenses. If you need ongoing access to smaller amounts of home equity, a home equity line of credit (HELOC) may be more suitable.

A mortgage pre-approval does not guarantee that your lender will approve the mortgage for a specific property. That is why many home buyers in Ontario still include a financing condition in their offer.

A financing condition can protect you if:

• Your financial situation changes before closing
• The lender approves you for less than expected
• The property appraisal comes in below the purchase price
• The property does not meet the lender’s requirements

Without a financing condition, you may still be legally required to complete the purchase even if your mortgage is declined. If you cannot close, you could lose your deposit and may also face a lawsuit from the seller.