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Rates in East York

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5-year variable* 0.00% (Prime 0.00%)
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*Insured loans. Other conditions apply. Rate in effect as of today.

Compare Current Mortgage Rates in East York

Explore the latest mortgage rates in East York to find the best deal for financing or refinancing your dream home.

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Current Mortgage Rates in East York

As of Tuesday, July 23, 2024, current interest rates in East York are for a 5-year fixed mortgage and for a 3-year fixed mortgage. Shop around for mortgage rates to find the best offer.

High interest rates continue to make it challenging to qualify for a mortgage, making it harder for East York residents to afford a home. While it’s almost impossible to predict when rates will come down meaningfully, experts forecast that we should expect a gradual reduction over the next few years. 

Home prices remain high, with CREA reporting that the national average home price decreased 3.4% year-over-year to $730,600 in June 2024. Ontario’s average price decreased 4.3% year-over-year to $885,100. As for Ontario’s largest cities, the average selling price of a home in Toronto decreased 4.6% year-over-year to $1,110,600. In Ottawa, the average home price decreased 0.5% year-over-year to $647,700. Hamilton’s average selling price decreased 2.5% to $849,900.

What are today’s mortgage rates in East York?

The average 5-year fixed mortgage rate from big banks in East York is 5.36%*, while nesto’s lowest 5-year fixed mortgage rate in East York is .

The average 5-year variable mortgage rate from big banks in East York is 6.57%*, while nesto’s lowest 5-year variable mortgage rate in East York is

The average 3-year fixed mortgage rate from big banks in East York is 5.88%*, while nesto’s lowest 3-year fixed mortgage rate in East York is

The average 3-year variable mortgage rate from big banks in East York is 7.40%*, while nesto’s lowest 3-year variable mortgage rate in East York is .

Note: The average rate is calculated based on the posted rates of the 6 biggest lenders in Canada that together make up over 70% of the retail mortgage market in the country. These 6 biggest lenders are the chartered banks: Toronto-Dominion Canada Trust (TD), Royal Bank of Canada (RBC), Bank of Montréal (BMO), Bank of Nova Scotia (BNS), Canadian Imperial Bank of Commerce (CIBC) and National Bank of Canada (NBC).

What are the lowest mortgage rates in East York today?

The average 5-year fixed insurable mortgage rate in East York is currently 5.36%, while nesto’s lowest 5-year fixed mortgage rate is

The average 5-year variable insurable mortgage rate in East York is currently 6.57%, while nesto’s lowest 5-year variable mortgage rate is

The average 3-year fixed insurable mortgage rate in East York is currently 5.88%, while nesto’s lowest 3-year fixed mortgage rate is

The average 3-year variable insurable mortgage rate in East York is currently 7.40%, while nesto’s lowest 3-year variable mortgage rate is

The average 2-year fixed insurable mortgage rate in East York is currently 6.75%, while nesto’s lowest 2-year mortgage rate is

The average 4-year fixed insurable mortgage rate in East York is currently 5.74%, while nesto’s lowest 4-year mortgage rate is .

The average 7-year fixed insurable mortgage rate in East York is currently 6.42%, while nesto’s lowest 7-year mortgage rate is .

The average 10-year fixed insurable mortgage rate in East York is currently 7.14%, while nesto’s lowest 10-year mortgage rate is .

Note: The average rate is calculated based on the posted rates of the 6 biggest lenders in Canada that together make up over 70% of the retail mortgage market in the country. These 6 biggest lenders are the chartered banks: Toronto-Dominion Canada Trust (TD), Royal Bank of Canada (RBC), Bank of Montréal (BMO), Bank of Nova Scotia (BNS), Canadian Imperial Bank of Commerce (CIBC) and National Bank of Canada (NBC).

What is today’s prime rate in East York?

The Bank of Canada prime rate in East York is currently . This rate affects all lenders’ discounts on variable and adjustable mortgages.

What are the average 5-year mortgage rates in East York?

The average 5-year fixed mortgage rate from big banks in East York is currently 5.36%*, while nesto’s lowest 5-year fixed mortgage rate in East York is .

The average 5-year variable mortgage rate from big banks in East York is currently 6.57%, while nesto’s lowest 5-year variable mortgage rate in East York is .

Note: The average rate is calculated based on the posted rates of the 6 biggest lenders in Canada that together make up over 70% of the retail mortgage market in the country. These 6 biggest lenders are the chartered banks: Toronto-Dominion Canada Trust (TD), Royal Bank of Canada (RBC), Bank of Montréal (BMO), Bank of Nova Scotia (BNS), Canadian Imperial Bank of Commerce (CIBC) and National Bank of Canada (NBC).

While it’s difficult to predict where mortgage rates will trend, the consensus among experts suggests that we could see rates remain higher for longer. Forecasts suggest we won’t see interest rates return to the neutral rate range of 2 to 3% until the end of 2025.

Bank of Canada Rate Announcement

The latest Bank of Canada (BoC) announcement on June 5th was a policy interest rate decrease to . The decision to decrease rates came as the BoC cited that continued evidence of inflation easing led to the decision that monetary policy no longer needed to be restrictive.

While inflation has eased, the growth in shelter costs, particularly rent and mortgage interest costs, is currently the largest contributor to inflation remaining elevated. The Governing Council continues to monitor core inflation numbers when assessing policy rate decisions to ensure there is sustained downward momentum in inflation.

The next announcement will be on July 24th. Using nesto’s proprietary overnight index swap and forward rate calculation data, bond markets are currently pricing in a small probability of further rate cuts. However, without further reductions to core inflation, the Bank may decide to leave the key rate unchanged.

Real Estate Market Update

The Canadian Real Estate Association (CREA) released its home sales data for May on June 17th. The data showed that home sales declined 0.6% between April and May, remaining slightly below the average of the last 10 years. May’s home sales activity reported new listings increased 0.5% month-over-month with a sales-to-new-listings ratio of 55%. Slower sales and more new listings are increasing the number of homes available for sale across the majority of the Canadian housing market.

This month of slower sales may likely be the last as the Bank of Canada’s rate cut on June 5th may increase real estate activity going forward. It’s anticipated that the rate cut may bring some pent-up demand back into the market, with buyers having more housing options to choose from than at any point in almost 5 years. Prices have stagnated across most markets except for Calgary, Edmonton, and Saskatoon, where prices have steadily climbed since last year.

CPI Inflation Update

Statistics Canada’s latest inflation data, released on July 16th, showed the Consumer Price Index (CPI) rose 2.7% year-over-year in June, down from 2.9% in May. This month’s slowdown is attributed to slower year-over-year growth in gasoline prices.

Shelter prices continued to be a more significant driver of inflation in June, up 6.2%, down slightly from the 6.4% recorded for May. Higher interest rates are impacting Canadians’ spending patterns, as they are now spending less on discretionary items and delaying big-ticket purchases. This may be contributing to lower demand as prices for durable goods fell 1.8% in June.

Mortgage Statistics for Ontario

Home prices in Ontario have more than doubled in the last 10 years. Here are some mortgage statistics for the housing market in the province:

  • Average home value (as of June 2024): $885,100 (CREA)
  • Canadian homeownership rate (as of 2021): 66.5% (StatsCan)
  • Number of home sales (as of June 2024): 16,060 (CREA)
  • Number of new listings (as of June 2024): 39,164 (CREA)

Mortgage Options in East York

East York conventional mortgage: Conventional or uninsured mortgages require a 20% or more downpayment. Mortgage default insurance is not required, as the equity from your downpayment is enough to protect the lender. There is no cap on the purchase price of a home with an uninsured mortgage, allowing you to purchase homes valued at $1 million or more.   

East York high-ratio mortgage: High-ratio or insured mortgages allow you to purchase a home with less than 20% of the purchase price as a downpayment. Mortgage default insurance is required to reduce the lender’s risk if you default on payments. Borrowers are limited to a maximum purchase price of less than $1 million. 

East York fixed-rate mortgage: Fixed-rate mortgages lock in your interest rate for the term. This provides stable mortgage payments with a set principal amount and interest paid throughout the term. Penalties on fixed-rate mortgages are calculated based on the higher of the interest rate differential (IRD) or 3 months’ interest. 

East York variable-rate mortgage: Variable-rate mortgages have fluctuating interest rates based on changes to the Bank of Canada policy rate. Adjustable-rate mortgages (ARM) are variable mortgages that would immediately adjust your mortgage payment to reflect changes to your lenders’ prime rate. The principal portion remains fixed, while the interest can increase or decrease based on changes to the prime rate. Variable-rate mortgages (VRM) are variable mortgages that have fixed mortgage payments despite changes to your lenders’ prime rate. The principal and interest proportions will adjust with more going to interest and less to principal if the prime rate increases or more going to principal and less to interest if the prime rate decreases. 

What Affects My Mortgage Rate in East York

The mortgage rate you are offered is influenced by many factors such as credit, income, capital, downpayment,  the property used as collateral, and conditions like the purpose of the loan and your loan-to-value (LTV) ratio. Mortgage rates are priced based on the risks associated with the mortgage, property, and borrower.  Some of the most important determining factors affecting your mortgage rate include:

  • Downpayment – The size of your downpayment will determine your LTV ratio and whether you will be required to purchase mortgage default insurance. Insured and insurable mortgage rates apply on properties valued at less than $1 million with amortizations up to 25 years. These mortgages will provide better rates as there is a lower risk of loss to the lender. 
  • Amortization – With prime lending, the amortization period cannot exceed 30 years on uninsured mortgages with downpayments of 20% or more. Uninsured mortgages typically have higher interest rates than insured and insurable mortgages to account for the added risk to the lender. On mortgages with less than 20% downpayment, the maximum allowable amortization is 25 years. 
  • Property Usage – Homes considered your primary residence, known as owner-occupied, generally have lower interest rates. Investment properties you intend to rent to others will typically have higher interest rates. Purchasing a primary residence with a second separate legally registered suite is considered an owner-occupied rental and will have access to the same rates as a primary residence. 
  • Mortgage Type – The type of mortgage will affect your mortgage rate. Open mortgages have higher rates due to the flexibility they offer. Refinances have higher rates than renewals and new mortgages. 
  • Credit Score – Your credit score will impact the type of lender that approves you for a mortgage. Those with good to excellent credit can typically go with prime lending and benefit from the best rates. Those with poor credit may need to look at alternative lending solutions with higher rates to offset the lender’s risks. 

First-Time Home Buyer Programs in Ontario

Several incentives and programs in Ontario are designed to help provide financial relief for first-time home buyers. These programs will offset some home-buying costs with programs specific to the province or municipality and others available across Canada. 

  • Ontario Land Transfer Tax Rebate – This rebate provides up to $4,000 to cover all or part of the Ontario portion of land transfer tax.
  • Downpayment Assistance Programs – Some municipalities have programs designed for locals to provide downpayment assistance and help locals achieve the goal of homeownership. 
  • First-Time Homebuyers Tax Credit (HBTC) – This federal government program allows first-time buyers to claim up to $10,000 for a maximum $1,500 tax credit to help offset closing costs. 

Land Transfer Tax in Ontario

Ontario’s Land Transfer Tax (LTT) rates are calculated based on the property’s purchase price and location.

Ontario Land Transfer Tax

Home Value or Purchase PriceMarginal LTT Rate
Up to $55,0000.5%
$55,001 – $250,0001.0%
$250,001 – $400,0001.5%
$400,001 – $2,000,0002.0%
$2,000,000+2.5%

How to Find the Best Mortgage Rate in East York

  • Step 1: Understand your credit score:  Before looking for a mortgage lender or applying for a mortgage, check your credit score regularly. This will help you immediately report and remedy errors that could negatively affect your score. If necessary, improve your credit score to help with your mortgage approval.
  • Step 2: Determine your borrowing capacity: To find the right mortgage solution, you’ll need to know how much house you can afford based on your income and downpayment. 
  • Step 3: Know your mortgage needs: Analyze different mortgage solutions’ features, risks, and costs. Careful research and comparisons of the available options can help you choose a mortgage that best meets your immediate and long-term financial needs.
  • Step 4: Find a suitable mortgage strategy: Get expert guidance to choose the best strategy for your homeownership goals. Your mortgage strategy shouldn’t just be based on the lowest rate.
  • Step 5: Compare rates and terms: Not all mortgages are equal. Choosing a lender like nesto for your mortgage can help you compare rates and terms for multiple lending solutions, ensuring you find the best fit. 
  • Step 6: Get prequalified for a mortgage: Begin your journey towards homeownership by taking advantage of nesto’s prequalification process for a mortgage. By analyzing your downpayment and financial stability, nesto will provide you with a comprehensive prequalification outlining the maximum mortgage amount you can qualify for. This information is crucial as it helps you set realistic expectations and narrow your search for a suitable home within your budget.