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Best mortgage rates in Toronto

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Common mortgage questions

Toronto is the capital city of Ontario and has a population of almost 3 million people. It is the most populous city in Canada and the fourth most populous in North America. It is a centre for music, business, arts, theatre and culture. Toronto is known to be one of the most multicultural and cosmopolitan cities in the world. Some popular attractions include the Toronto Eaton Centre, the PATH, Kensington Market, the CN Tower and the Ripley’s Aquarium of Canada.

Toronto has some of the nation’s and the world’s most expensive real estate. There are many large real estate investment trusts based in Toronto as well. In 1920, The Toronto Regional Real Estate Board was formed, a non-profit professional association of registered real estate brokers.

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Toronto is Canada’s largest city and real estate market. Because of this, Toronto mortgage lenders need to offer competitive rates in order to keep up with the competition and get business. This competition can lead to lower Toronto mortgage rates, compared to rates offered in other areas of Canada. The reason why lenders are required to compete on the mortgage rates they offer, is that there is not a large difference between mortgage products. Homebuyers will base a lot of their decision on the mortgage rates they are getting. Having a lower mortgage rate can help homebuyers save a significant amount over the life of their mortgage term, especially in Toronto where the average home price of a detached home now exceeds $1,400,000.
The big 6 banks which include RBC, TD Bank, Scotiabank, BMO, CIBC and National Bank, all have operations in Toronto where you can get a mortgage. There are also digital banks that offer mortgage rates in Toronto such as Equitable bank and Simplii Financial.

There are also several credit unions in Toronto such as Meridian and Alterna. Many people go to a credit union because you do not need to pass a mortgage stress test as a requirement for getting a mortgage, which can make getting a mortgage a little easier.
There are over 340 brokers and over 50 private mortgage lenders in Toronto. Mortgage brokers and lenders can be especially helpful for those who have tricky financial situations or don’t meet all the requirements for a traditional mortgage. You might want to consider going to a mortgage broker or private lender if you require short term financing and have bad credit or can’t pass a mortgage stress test. Mortgage brokers can help you find some of the lowest rates available to you.
To find the best mortgage rate that suits you and your specific needs, it’s best to shop and compare rates offered by various lenders. You shouldn’t rely on just one lender or broker if you want to find a good deal. It’s also important that you understand all aspects of what a mortgage entails as well as the mortgage market, so you can get a better idea of what you need. Here are some tips to finding a mortgage with low borrowing costs.
  1. Understand mortgage terms and find one that best suits your needs. A term you pick can have an effect on how much interest you will have to pay.
  2. Find the lowest rates for the term you have chosen. You can do this with the Perch mortgage rate comparison tool. Be sure to read the fine print and understand any restrictions that come with this rate.
  3. Contact the mortgage brokerage or lender offering the rate that you want and ask them to break down the features and limitations of the rate that you want. You will want to know about any prepayment penalties, porting rules or refinance options, as these can impact your borrowing costs. You can go through these options with your broker and pick the best combination of upfront interest savings after-closing flexibility.
Most people are motivated to seek out the lowest mortgage rate possible when shopping around for offers. While the difference between rates may only be a fraction of a percent and sound negligible, this can translate into thousands of dollars in savings over the lifetime of your mortgage loan.

The mortgage rates offered to you by a lender are dependent on a number of factors, such as the purchase price, your down payment, amortization and your credit score. Lenders use this information to assess how likely you are to repay your mortgage loan.

The purchase price and your down payment will determine how much you need to borrow, which in turn impacts your mortgage payment. You can see the effect of your down payment amount and mortgage rates on our rates page.

The mortgage amortization is the period of time over which your mortgage will be paid off. The longer the amortization period, the more interest you’ll pay on the loan. The most common amortization period in Toronto, Ontario is 25 years. The most common mortgage term is five years.

Your credit score is used to assess your creditworthiness, in other words, how risky it would be for a lender to lend you money. Your credit score changes over time, as your credit report gets updated. Those who can manage credit responsibly and make their loan payments have a higher score. In general, you are more likely to get a lower mortgage rate if you have a higher credit score. Those with lower credit scores tend to receive higher rates.
Whether you’re buying a home, renewing or refinancing in Toronto, Ontario, mortgage lenders typically don’t care about the mortgage transaction type. The main factors that impact your mortgage rate will be the purchase price, your down payment, amortization and your credit score.
Ontario residents are always looking for the best mortgage rates. The rates you’re offered can vary, as some areas will have more competition among lenders, which can benefit you as the customer. If there are many banks, mortgage brokers and credit unions offering mortgages in your area, this could result in slightly lower rates. Mortgage rates can also be impacted by housing demand in a particular region. Regardless of where you live in Canada, Perch can help find the best mortgage offer for you.
When you initially get a mortgage in Toronto, Ontario, you are committing to a mortgage term. This mortgage term can vary in length — anywhere from a few months to five years, or longer. When your mortgage term comes to an end, you can choose to renew your mortgage with the same lender, renew with a different lender offering more favourable terms, or pay your mortgage off in full.

It’s best to shop around a few months before your mortgage renewal, and see what other lenders can offer. You don’t have to wait until you receive a renewal letter from your lender to see what other mortgage options are available.

A mortgage refinance is when you are breaking your current mortgage and starting a new mortgage, either with the same lender or a different one. Refinancing can help you take advantage of a better mortgage offer, unlock equity in your home, or to consolidate your debt. When you refinance, you will need to pay penalties (fees) to break your mortgage. The penalties will vary based on the lender, so it’s important to understand how to calculate these fees before you move forward. From there, you can make an informed decision whether it’s financially beneficial for you to refinance.

Perch can help you decide if it makes sense to refinance your mortgage in Toronto, Ontario. Our mortgage penalty calculator helps you calculate the costs of breaking your mortgage. When you set up an account with Perch, we’ll automatically monitor the mortgage market and let you know when there’s an opportunity to save money by switching mortgages. Perch can calculate the difference between your mortgage penalty costs and the amount of money you could save with a lower mortgage rate, and tell you exactly how much money you can get back.

People who are applying for a mortgage may be wondering how long it will take to hear back from a lender, and what factors could delay their application process.

This is what a typical mortgage application process looks like:
  1. Your mortgage advisor will review your situation and discuss what mortgage options make the most sense for you. Ideally, you’ve already gotten pre-approved, so they’re familiar with your preferences.
  2. The mortgage advisor will submit your application to the lender.
  3. The lender reviews your deal and issues a commitment letter, which outlines what conditions need to be met for you to get a mortgage. If your application is rejected, you will need to either revise your application or go to a different lender.
  4. The mortgage advisor will work with you to collect any additional documents to meet the mortgage commitment conditions in advance of your closing date. To be safe, you’ll want to fulfill all conditions at least 10 days prior to closing.
  5. Once the mortgage conditions are met, the lender will then send the mortgage instructions to your real estate lawyer.
Most lenders will respond within one business day, however some lenders may take up to one week or longer if they have received a lot of applications. It’s important to ensure all the requested documentation is received by the lender, otherwise it could lead to processing delays on your application.
Typically, a fixed rate mortgage will have higher rates than a variable, since you are paying a slight premium for predictability. Here are some questions to help you decide if you should go with a fixed or variable rate mortgage:
  • Do you see yourself selling your property or otherwise breaking your mortgage during the length of your current term? If the answer is yes, you may want to go with a variable rate to avoid the higher mortgage break penalty fees that come with a fixed rate mortgage.
  • Do you believe the Bank of Canada will set rates lower during the length of your mortgage term? If the answer is yes, you may want to go with a variable rate and have the option of locking in to a fixed rate later.
  • Are you comfortable with fluctuations in your mortgage rate? If the answer is yes, you may want to go with a variable rate in order to maintain flexibility. While your monthly mortgage payment amount stays the same, you could have more or less of your payment go towards your mortgage principal when rates change.
While a variable rate mortgage may sound unpredictable and uncertain, the monthly mortgage payment amount does not change even if the rate increases or decreases. When the rate fluctuates, it impacts how much of your monthly payment goes towards paying off the mortgage principal or the interest. However, the payment amount itself stays the same.
There is no specific bank that has the best mortgage rates in Toronto. When looking for mortgage rates in Toronto, it’s best to compare rates and shop around. Consult your mortgage advisor to help you find a mortgage rate in Toronto that’s best for you.
To obtain a mortgage in Toronto, you have the option of going to a mortgage broker or to a bank.

There are many benefits to getting a mortgage from a broker:
  • Brokers can access mortgage offers from multiple lenders
  • Will find you a mortgage rate that is most beneficial to you
  • They are highly motivated to ensure your mortgage application is completed correctly and submitted successfully since they are only paid when you successfully get a mortgage through them

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Perch makes it easy to find the best mortgage rates in Toronto. Our rates are updated daily, to ensure you have the most current information.

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Toronto real estate market trends and historical rates

Toronto mortgage rates are constantly fluctuating. These fluctuations are caused by changes in Canada’s bond yields (driven by Canadian economic developments and international rate movements) and the Bank of Canada’s overnight rate.

See below for a chart of Toronto’s historical mortgage rates:

Year Insured Uninsured
2015 2.39% 2.64%
2016 2.27% 2.35%
2017 2.68% 2.99%
2018 3.24% 3.67%
2019 2.48% 2.72%
2020 1.33% 0.99%

B2B Bank

CMLS Financial

Canadian Western Bank


Equitable Bank

First National

Home Trust





MERIX Financial

Radius Financial


RMG Mortgages


Strive Financial

TD Bank

XMC Mortgage Corporation

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