Best Mortgage Rates in Toronto

Hunting for the best mortgage rates in Toronto isn’t easy. You have to consider not only the interest rates but whether those rates are fixed or variable and the term. Here we offer an overview of mortgage rates in Toronto to help you find the best mortgage for your needs.

BMO Mortgage Rates - Citadel Mortgages

BMO 5-year Fixed Mortgage Rate

Rate Type5-Year-Fixed

Mortgage TypeClosed

Prepayment 20%

HSBC.png

HSBC 3-year Fixed Mortgage Rate

Rate Type3-Year-Fixed

Mortgage TypeClosed

Prepayment 15%

6.09%

6.09%

CIBC MORTGAGE RATES - CITADEL MORTGAGES

CIBC 5-year Variable Mortgage Rate

Rate Type5-Year-Variable

Mortgage TypeClosed

Prepayment 20%

citadel-mortgages.png

5 Year Fixed Rate
(High Ratio)

Rate Type 5-Year-Fixed

Mortgage TypeClosed

Prepayment 15%

citadel-mortgages.png

3 Year Variable Rate
(High Ratio)

Rate Type 3-Year-Variable

Mortgage TypeClosed

Prepayment 20%

citadel-mortgages.png

5 Year Variable Rate
(High Ratio)

Rate Type 5-Year-Variable

Mortgage TypeClosed

Prepayment 15%

About Toronto

Toronto is the largest city in Canada, with a growing population of 2.93 million. It is known as a multicultural city that is diverse and welcoming, with several noted neighbourhoods where residents and tourists alike can discover the cuisine of different countries, from China to Italy and Greece to Korea. The city is also committed to culture and the arts, with many museums and galleries to explore as well as dozens of theatres and venues to take in musicals, see world-class entertainers or enjoy spectator sports.

The lively nightlife offers endless possibilities, whether it is enjoying a beer while listening to local live bands, sharing cocktails on a rooftop patio, or sampling wine at a wine bar. Toronto is also a foodie heaven, from food trucks to fine dining and craft beer tours to gourmet coffee shops. Attractions include the CN Tower, Casa Loma, the Toronto Islands, The Hockey Hall of Fame, Ripley’s Aquarium, the Art Gallery of Ontario, The Distillery District, and the Royal Ontario Museum.

Cost of Living in Toronto

The average expense for a single person in Toronto is $1,226.62 per month, plus rent at about $2,200. Other expenses include:

  • Phone: $101
  • Transportation: $156
  • Groceries: $388

Home Prices in Toronto

Here are the most current housing prices in Toronto:

  • The average sold price is $1,09M
  • Detached homes: $1.44M
  • Semi-detached homes: $1.07M
  • Freehold townhouses: $1.05M
  • Condo apartments: $705k

The Toronto Mortgage Market

Toronto home buyers let out a collective sigh of relief as the Bank of Canada chose to pause prime rate hikes, keeping keep them level with January interest rates. However, experts are predicting we will see at least one more increase before the summer is out. .

What Types of Mortgages Are Available in Toronto?

Toronto offers the same types of mortgages as the rest of Canada, including:

  • Fixed:
    A fixed mortgage offers a mortgage rate that doesn’t change for the full term of the mortgage.

  • Variable:
    A variable rate changes with the prime rate, which can either save you money or put you at risk of taking longer to pay your mortgage off.

  • High Ratio:
    A high-ratio mortgage has a loan-to-value ratio above 80%. As a result, you have to pay mortgage insurance. High-ratio mortgages can sometimes offer lower interest rates compared to conventional mortgages. However, the difference between the money saved on interest is often offset by the insurance fees.

  • Conventional:
    A conventional mortgage has a loan-to-value ratio below 80% and therefore does not require insurance.

  • Open:
    An open mortgage provides more flexibility allowing you to prepay mortgage payments without penalty. However, they also tend to have higher interest rates for the privilege.

  • Closed:
    Closed mortgages limit how much you can prepay on your mortgage and also charge penalties if you prepay more than the bank allows. They tend to have lower interest rates than open mortgages.

  • Uninsurable: If a mortgage is over $1 million, is amortized for more than 25 years, or is provided to people without the required credit score, it is considered uninsurable. As a result, uninsured mortgages tend to have much higher interest rates so the bank can cover its potential losses.

Historical Toronto Mortgage Rates

Here is a look at year-over-year January Toronto mortgage rates from 2019 to 2023:

Year                Term               Rate

2019                1-year             3.64%

                        3-year             4.29%

                        5-year             5.34%

2020                1-year             3.64%

                        3-year             3.94%

                        5-year             5.19%

2021                1-year             3.09%

                        3-year             3.49%

                        5-year             4.79%

2022                1-year             2.79%

                        3-year             3.49%

                        5-year             4.79%

2023                1-year             6.34%

                        3-year             6.14%

                        5-year             6.49%

Comparing the Best Mortgage Rates in Toronto

Toronto mortgage rates for Canada’s top five major banks are as follows:

1-year Fixed

Lender                                   Insured           Uninsured

TD                                          6.19%             6.19%

BMO                                       6.19%             6.27%

RBC                                        6.24%             6.24%

CIBC                                       6.35%             N/A

Scotiabank                             6.79%             6.79%

3-year Fixed

Lender                                   Insured           Uninsured

BMO                                       5.22%             5.34%

TD                                          5.59%             5.62%

RBC                                        5.70%             5.70%

CIBC                                       6.24%             N/A

Scotiabank                             6.44%             6.44%

5-year Fixed

Lender                                   Insured           Uninsured

CIBC                                       5.14%             5.64%

BMO                                       5.16%             5.28%

TD                                          5.44%             5.46%

RBC                                        5.69%             5.69%

Scotiabank                             6.34%             6.35%

5-year Variable

Lender                                   Insured           Uninsured

BMO                                       6.39%             6.49%

TD                                          6.45%             N/A

RBC                                        6.50%             6.50%

CIBC                                       6.64%             6.70%

Scotiabank                             7.15%             7.15%

How to get the Best Mortgage Rates in Toronto

Instead of trying to shop online or go from bank to bank looking for the best mortgage rates, working with a mortgage broker helps you get the best mortgage rates in Toronto. They offer unbiased recommendations based on the going mortgage rates available through dozens of lenders. Brokers leverage their relationships with multiple lenders to find the best options based on your financial situation and credit score, as well as for specific income situations like business owners and self-employed individuals.

Toronto First-Time Home Buyer’s Rebate

If you are a first-time home buyer, you can be eligible to receive a rebate of up to $4,475 whether you are buying a newly constructed or resale residential property. To qualify for the rebate, you must be a Canadian citizen or a permanent resident.

Frequently Asked Questions About Toronto Mortgage Rates

No. As you may recall, we explained the differences between various mortgages. If you find a lower rate for a variable mortgage, you have to keep in mind that this type of mortgage does not offer the same rate over the term of the mortgage. Instead, it rises and falls with the prime rate. So while the fixed rate might be higher, you need to consider whether you can risk an increase in your mortgage rates when you choose the lower variable. There can sometimes be questionable conditions as well, depending on the type of lender, so never sign a mortgage agreement unless you understand all the conditions, applicable fees, penalties, and how changes will impact the time it takes to pay down your mortgage.

Yes. Not all mortgage brokers are created equal. Each broker has a particular number of lenders they deal with. As well, some are more forthcoming with information to help you make the best decision. Having too many lenders can muddy the waters and make it difficult to decide. You also want a broker who understands how to deal with good, bad, and no-credit borrowers so they can find a solution for your particular financial situation.

It depends on what type of mortgage you want. Right now, the best variable mortgage rate is available at BMO, while the best fixed rate is through CIBC when it comes to the banks. While in with a mortgage broker at Citadel Mortgages they have the lowest fixed and variable rates that beat out the banks above. You have to shop around at the moment you are ready to apply for pre-approval to ensure you find the best rate.

They can be. Because Toronto is such a competitive market, lenders are more aggressive with their rates and might be more willing to reduce their rates to win your business.

FIND A BETTER MORTGAGE RATE

Best Mortgage Bank Rates in Toronto

BMO Mortgage Rates - Citadel Mortgages

BMO 5-year Fixed Mortgage Rate

Rate Type5-Year-Fixed

Mortgage TypeClosed

Prepayment 20%

HSBC.png

HSBC 3-year Fixed Mortgage Rate

Rate Type3-Year-Fixed

Mortgage TypeClosed

Prepayment 15%

6.09%

6.09%

CIBC MORTGAGE RATES - CITADEL MORTGAGES

CIBC 5-year Variable Mortgage Rate

Rate Type5-Year-Variable

Mortgage TypeClosed

Prepayment 20%

Best Mortgage broker Rates in Toronto

citadel-mortgages.png

5 Year Fixed Rate
(High Ratio)

Rate Type 5-Year-Fixed

Mortgage TypeClosed

Prepayment 15%

citadel-mortgages.png

3 Year Variable Rate
(High Ratio)

Rate Type 3-Year-Variable

Mortgage TypeClosed

Prepayment 20%

citadel-mortgages.png

5 Year Variable Rate
(High Ratio)

Rate Type 5-Year-Variable

Mortgage TypeClosed

Prepayment 15%

Disclaimer

Citadel Mortgages operates an information-based website that displays mortgage rates from its partners. While the company strives to provide the best possible rates, it cannot guarantee their accuracy at all times. Therefore, Citadel Mortgages accepts no liability for the precision of the information presented and is not accountable for any damages resulting from its use. Terms and conditions apply, and it is necessary to speak with a mortgage broker for further details. Please note that the rates displayed in this article are for article use only.

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BMO 5-year Fixed Mortgage Rate

5.64%

BMO Mortgage Rates - Citadel Mortgages

5-Year-Fixed

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No

Pre-approval

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20%

Pre-Payments

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20%

Lump sum pre-payment

HSBC 3 Year Fixed Mortgage Rate

6.09%

HSBC.png

3-Year Fixed

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No

Pre-approval

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20%

Pre-Payments

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20%

Lump sum pre-payment

CIBC 5-Year Variable Mortgage Rate

7.00%

CIBC MORTGAGE RATES - CITADEL MORTGAGES

5-Year Variable Mortgage Rate

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No

Pre-approval

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10%

Pre-approval

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10%

Lump sum pre-payment

Citadel 5 Year Fixed High Ratio Mortgage Rate

5.29%

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5-Year-Fixed

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Yes

Pre-approval

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15%

Pre-Payments

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15%

Lump sum pre-payment

Citadel 3 Year Variable High Ratio Mortgage Rate

6.10%

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3-Year-Variable

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No

Pre-approval

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20%

Pre-approval

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20%

Lump sum pre-payment

Citadel 5 Year High Ratio Variable Mortgage Rate

5.90%

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5-Year-Variable

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Yes

Pre-approval

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15%

Pre-Payments

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15%

Lump sum pre-payment

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Citadel 4-Year Fixed Mortgage Rates

6.44%

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4-Year-Fixed

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Yes

Pre-approval

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15%

Pre-Payments

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15%

Lump sum pre-payment

Citadel 4-Year Fixed Mortgage Rates

6.44%

citadel-mortgages.png

4-Year-Fixed

save-icon-1.png

Yes

Pre-approval

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15%

Pre-Payments

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15%

Lump sum pre-payment