Find the Best Mortgage
Rates in Toronto

Current Mortgage Rates in Toronto

As of Friday, November 21, 2025, current interest rates in Toronto 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 Toronto 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 $682,600 in September 2025. Ontario’s average price decreased 6.7% year-over-year to $781,500. As for Ontario’s largest city, the average selling price of a home in Toronto decreased 5.5% year-over-year to $960,300. 

Toronto Mortgage Rate Trends: November 2025

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 Bank of Canada’s (BoC) latest announcement, made on October 29th, was a policy interest rate cut, lowering the rate to 2.25%. This continues the BoC easing cycle, as economic growth shows signs of slowing. 

The Governing Council decided to reduce the rate due to ongoing economic weakness and inflation that is expected to remain close to the 2% target. Canada’s GDP declined in Q2 due to tariffs and trade uncertainty weighing on economic activity. Employment has declined with job losses concentrated primarily in trade-sensitive sectors. Employment growth has slowed, with weak hiring, and the unemployment rate remained at 7.1% in September.

The next announcement will be on January 28. The bond futures markets are currently pricing in a 88% probability of a rate hold and a 12% probability of a 25 basis point cut.

Real Estate Market Update

On October 16th, the Canadian Real Estate Association (CREA) released its September home sales data. The data showed that home sales declined 1.7% month over month, ending the string of gains that had been recorded since April. However, this was still the best month of September sales since 2021.

September’s home sales activity reported that new listings fell 0.8% month-over-month. While there are more buyers in the market, sales activity remains below average. Though with pent-up demand and lower interest rates, it’s predicted that home sales will trend upward in the last quarter of 2025 and into 2026.

CPI Inflation Update

The most recent inflation data shows a 2.4% year-over-year rise in September, up from the 1.9% increase in August. This increase was primarily due to the base-year effect, as gasoline prices fell to a lesser extent in September (-4.1%) compared to August (-12.7%), leading to faster growth in headline inflation. Contributing to upward pressure on CPI this month were smaller year-over-year declines in prices for travel tours (-1.3%) and a larger increase in prices for food purchased from stores (+4.0%).

Mortgage Statistics for Toronto

Home prices in Toronto have more than doubled in the last 10 years. Though inventory levels are high, prices have not dropped in any meaningful way. Here are some mortgage statistics for the housing market in the city:

• Average home value (as of September 2025): $960,300 (CREA)
• Canadian homeownership rate (as of 2021): 66.5% (StatsCan)
• Number of home sales (as of September 2025): 5,592 (CREA)
• Number of new listings (as of September 2025): 19,260 (CREA)

Mortgage Options in Toronto

Toronto conventional mortgage: Conventional or uninsured mortgages require a downpayment of 20% or more. The equity from your downpayment is enough to protect the lender, and you will not require mortgage default insurance. With uninsured mortgages, there is no limit on the home’s purchase price. 

Toronto high-ratio mortgage: High-ratio or insured mortgages allow you to purchase a home with a downpayment of less than 20%. You must purchase mortgage default insurance to reduce the risk to the lender. With high-ratio mortgages, you will be limited to a purchase price of less than $1 million.

Toronto fixed-rate mortgage: Fixed-rate mortgages lock in your interest rate for the term. The principal and interest amounts are fixed, providing stable mortgage payments throughout the term. If you need to break the mortgage before the end of the term, penalties will be calculated based on the higher of the interest rate differential (IRD) or 3 months’ interest.

Toronto variable-rate mortgage: Variable-rate mortgages have interest rates that change based on the Bank of Canada policy rate and your lenders’ prime rate. Adjustable-rate mortgages (ARM) are variable mortgages that 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 when the prime rate increases or decreases. Variable-rate mortgages (VRM) are variable mortgages that have fixed mortgage payments despite changes to your lenders’ prime rate. The principal and interest on your fixed payment 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 Toronto

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

• Downpayment –  The amount of your downpayment will determine your LTV ratio and whether you will be required to purchase mortgage default insurance. Insured and insurable mortgages have better rates as there is a lower risk of loss to the lender. Insured and insurable rates apply to properties valued at less than $1 million with amortizations up to 25 years. 
• Amortization – With prime lending, the amortization period on uninsured mortgages (downpayments of 20% or more) cannot exceed 30 years. Uninsured mortgages typically have higher interest rates than insured and insurable mortgages to account for the added risk to the lender. The amortization on insured and insurable mortgages cannot exceed 25 years. 
• Property Usage – Your primary residence, known as owner-occupied, will generally have lower interest rates. Investment properties you intend to rent out will typically have higher interest rates. 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 – Open mortgages have higher rates than closed rates due to the added flexibility. 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. If you have good to excellent credit, you can typically use prime lending and benefit from the best rates. If you have poor credit, you may need to consider alternative lending solutions with higher rates to offset the lender’s risks. 

First-Time Home Buyer Programs in Toronto

Toronto has several first-time homebuyer (FTHB) incentives available through the municipality, province, and federal government. These programs are designed to help provide financial relief for first-time buyers, offsetting some of the costs of purchasing a home. 

• Affordable Home Ownership Program (AHOP) – This program is designed for Aboriginal Canadians intending to purchase a home in the GTA as their principal residence. To qualify, you must be currently renting, intend to live in the home as a principal residence and have an income that doesn’t exceed the maximum household income (changes yearly). 
• Toronto Municipal Land Transfer Tax Rebate – This rebate provides up to $4,475 to cover all or part of the Toronto portion of land transfer tax.
• 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.
• 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 Toronto

Ontario’s Land Transfer Tax (LTT) rates are calculated based on the property’s purchase price and location. An additional Municipal Land Transfer Tax (MLTT) applies to properties located in Toronto. 

Ontario Land Transfer Tax

Toronto Land Transfer Tax

How to Find the Best Mortgage Rate in Toronto

• 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: Your mortgage strategy shouldn’t be based solely on the lowest rate. Get expert guidance to choose the best strategy for your homeownership goals. 
• 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.