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 5-year Fixed Mortgage Rate
Rate Type5-Year-Fixed
Mortgage TypeClosed
Prepayment 20%
5.64%
HSBC 3-year Fixed Mortgage Rate
Rate Type3-Year-Fixed
Mortgage TypeClosed
Prepayment 15%
6.09%
5.59%
CIBC 5-year Variable Mortgage Rate
Rate Type5-Year-Variable
Mortgage TypeClosed
Prepayment 20%
6.70%
5 Year Fixed Rate
(High Ratio)
Rate Type 5-Year-Fixed
Mortgage TypeClosed
Prepayment 15%
4.29%
3 Year Variable Rate
(High Ratio)
Rate Type 3-Year-Variable
Mortgage TypeClosed
Prepayment 20%
5.79%
5 Year Variable Rate
(High Ratio)
Rate Type 5-Year-Variable
Mortgage TypeClosed
Prepayment 15%
5.40%
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
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Mortgage Rates New Brunswick
Mortgage Rates Newfoundland
BMO Mortgage Rates
CIBC Mortgage Rates
Scotiabank Mortgage rates
TD Bank Mortgage Rates
RBC Mortgage Rates
Manulife Mortgage Rates
Best Mortgage Bank Rates in Toronto
BMO 5-year Fixed Mortgage Rate
Rate Type5-Year-Fixed
Mortgage TypeClosed
Prepayment 20%
5.64%
HSBC 3-year Fixed Mortgage Rate
Rate Type3-Year-Fixed
Mortgage TypeClosed
Prepayment 15%
6.09%
5.59%
CIBC 5-year Variable Mortgage Rate
Rate Type5-Year-Variable
Mortgage TypeClosed
Prepayment 20%
6.70%
Best Mortgage broker Rates in Toronto
5 Year Fixed Rate
(High Ratio)
Rate Type 5-Year-Fixed
Mortgage TypeClosed
Prepayment 15%
4.29%
3 Year Variable Rate
(High Ratio)
Rate Type 3-Year-Variable
Mortgage TypeClosed
Prepayment 20%
5.79%
5 Year Variable Rate
(High Ratio)
Rate Type 5-Year-Variable
Mortgage TypeClosed
Prepayment 15%
5.40%
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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