Current Mortgage Rates in Ontario: What You Need to Know This Month

Last Updated:
December 2024

Are you planning to buy a home in Ontario? Or maybe you’re thinking about refinancing your current mortgage?

If so, understanding the current mortgage rates in Ontario is essential. The housing market is always changing, and so are the rates.

This guide will help you understand what’s happening with mortgage rates and how to make the most of your money.

What Are the Current Mortgage Rates in Ontario?

As of this month, current mortgage rates Ontario range between 5% and 6% for fixed-rate mortgages.

For variable-rate mortgages, rates are slightly lower, starting at around 4.5%. These rates depend on factors like your credit score, loan amount, and the lender you choose.

Fixed vs. Variable Rates: What’s the Difference?

Feature	Fixed Rate Mortgage	Variable Rate Mortgage
Interest Rate	Stays the same for the entire term.	Can change during the term based on market conditions.
Payment Consistency	Monthly payments remain the same throughout the term.	Payments can fluctuate depending on interest rate changes.
Risk Level	Lower risk – predictable payments.	Higher risk – payments may increase if rates rise.
Best for	Homebuyers who prefer stability and predictability.	Homebuyers are ready to take on some risk for potential savings.
Interest Rate	Typically higher than variable rates initially.	Starts lower, but can rise over time.
Long-term Budgeting	Easier to budget for long-term expenses.	Can be harder to budget due to rate fluctuations.
Potential Savings	Limited, as rates are locked in.	Potential for savings if rates decrease.
Term Length	Usually 1-10 years, but can be longer.	Usually 1-5 years, though some longer options exist.
Early Payment Options	Fixed-rate mortgages may offer some prepayment flexibility.	Variable-rate mortgages may have more prepayment flexibility.
Ideal Scenario	Buyers who plan to stay in the home long-term.	Buyers who can manage fluctuating rates and plan to stay short-term or refinance before rates go up.

Mortgage Rates in Ontario: Insider Tips for Homebuyers

Buying a home is a big decision. Here are some insider tips for homebuyers to help you make smart choices:

Shop Around
Improve Your Credit Score
Get Pre-Approved
Understand Your Budget

Additionally, you can explore a simple guide to the best mortgage rates in Ontario.

Check Online Platforms: You should compare offers from multiple lenders quickly.
Work with a Mortgage Broker: Brokers often have access to exclusive rates that you won’t find on your own.
Consider Shorter Terms: Shorter mortgage terms sometimes offer lower rates. But remember, your payments will be higher.
Negotiate with Lenders: Don’t be afraid to ask for a better deal. Some lenders may be willing to lower their rates to win your business.

Strategies for Maximum Savings for Mortgage Rates

Want to save even more? These strategies for maximum savings can help:

Increase Your Down Payment
The more you put down, the less you’ll need to borrow. This means lower payments and less interest over time.
Pay Bi-Weekly Instead of Monthly
Making bi-weekly payments instead of monthly ones can help you pay off your mortgage faster and save on interest.
Avoid Penalties
If you’re thinking of breaking your mortgage or refinancing, check for penalties. These fees can add up quickly.
Stay Flexible
Choose a mortgage with flexible terms. This can help if you want to pay extra or refinance later.

What’s Ahead for Ontario Mortgage Rates?

Experts expect mortgage rates to stay steady in the short term. However, small increases are possible as the Bank of Canada continues to monitor inflation.

If you’re looking for the lowest mortgage rates in Ontario, now might be a good time to lock in a rate before they rise again.

Final Thoughts

The current mortgage rates in Ontario might be manageable for many homebuyers, but it's always a good idea to plan and make sure you're getting the best deal.

If you're ready to take the next step and find the perfect mortgage for your needs, we're here to help! Don't wait for rates to change—act now and secure the best possible deal for your future.

Call us today at (416) 607-7000 or email us at [email protected] to speak with one of our experts. Let’s make your homeownership dreams a reality!

Recent Blogs

View all

The Knowledge Hub

Unlock Expert Insights on Real Estate Mortgages! Subscribe now for exclusive tips and updates straight to your inbox.

You acknowledge and agree to Lending Hub's Terms of Use and Privacy Policy by submitting your email address. Contact Us for more information. You can unsubscribe at any time.