Best Mortgage Rates in Ontario

The interest rates on a mortgage can vary considerably from day to day. Ratesheet helps you compare the best mortgage rates in Ontario in one easy to use location. A right mortgage and interest rate can help you save thousands of dollars over the term of your mortgage. You can also find listings of the best local mortgage brokers with contact information on Ratesheet. Our mortgage loan payment calculators or the mortgage insurance calculators can also help you make estimates for your mortgage.

Current Mortgage Rates Ontario

Looking for the best mortgage rates in Ontario? provides the most up to date, current rates, simply choose your Province, select applicable choices and compare the best rates in the industry. helps you connect with a mortgage broker who can identify the best deal for your home purchase or mortgage refinancing.

Compare Mortgage Rates in Ontario

Compare mortgage rates in Ontario and get a detailed, accurate comparison of the best mortgage rates available in Ontario.

Ontario Mortgage Brokers

Since banks and other lenders provide various mortgage offers, it may be difficult to select the best one considering the numerous factors needing to be analyzed to make a solid decision. An experienced mortgage broker in Ontario can evaluate your financial abilities, estimate how much you need to borrow and your preferred mortgage payments schedule before identifying and obtaining the best mortgage loan with a low interest rate for your first home purchase or mortgage refinancing. A knowledgeable broker in Ontario can also calculate the amount of mortgage insurance premiums if your down payment is less than 20 percent of your home value.

Best Mortgage Rates Ontario

No matter which province or territory you reside in, finding the best mortgage ratecan save you thousands of dollars. Obviously, there are not many people who can purchase property without taking out a home loan. Taking out a home loan lets you buy, live in and/or use a home without needing to come up with the full dollar amount at the time of purchase. Usually the amount of the loan is equal to the majority of the home’s worth, but the downfall of this is that you will be required to pay interest on the loan. Most lenders insist on a down payment, i.e., a payment equal to a portion of the property’s worth. For instance, if a home is worth $200,000 and the buyer would need to make a down payment of 10%. This would equal a $20,000 down payment ($200,000 x 10%). To make up the balance, the lender would loan you $180,000 ($200,000 minus the $20,000 down payment).

When you are dealing with interest rates on large amounts of money even a variance in interest rates as small as an eight of a percent can make a significant difference in the amount you will be required to repay. Typically the interest is also calculated over long periods of time, which puts even more emphasis on securing the best rate possible. To make things more complicated there are also different rate and mortgage rates. This can make it difficult to determine whether you are comparing apples to apples or apples to oranges.

Interest rates can vary widely even from day to day so locking in on the best rate is extremely important. One of the easiest ways to do this is to enlist the help of a mortgage broker who can act as an entry way to a variety of lending institutions – banks, credit unions, etc. Mortgage Rate Comparison website like could help you get the best mortgage rates and save you thousands of dollars. Its is advised that you compare mortgage rates before you lock in with any lender.

A potential buyer also needs to understand how much is a reasonable amount to borrow as well as the implications of payment frequency.

Ontario Housing Market Outlook Ontario

Single Starts: Single detached starts will slow to 26,400 units in 2011 and 23,600 units in 2012. Single detached starts have led the recovery in residential construction activity across the province as many buyers purchased early to avoid insured mortgage rule changes. Less pentup demand and land constraints will limit the growth in single detached construction.

Multiple Starts: Less expensive, higher density housing will post growth from 2010 levels reaching 41,000 and 38,800 unit starts in 2011 and 2012, respectively. Construction will be boosted by growing demand for apartment dwellings while low primary rental apartment vacancy rates will support investment demand for apartment units.

Resales: The less expensive resale market will remain stable this year and next reaching nearly 196,000 unit sales for both 2011 and 2012. Slow job growth will temper increases in activity, particularly in Ontario's most expensive markets.

Prices: Steady sales and higher home listings will move Ontario's resale markets into balance. Local housing markets will be better supplied and prices will be growing below long term rates of growth and more in line with the rate of inflation by 2012. Shifting demand to less expensive housing will also support slower growth in home prices. The average MLS® price is forecast to be $36 2,800 in 2011 and $366,100 in 2012.

Source: Canada Mortgage and Housing Corporation (CMHC)


Fixed Mortgage Rates vs. Variable Mortgage Rates

Fixed Mortgage Rate: A fixed rate means that your interest rate remains the same (fixed) for the entire term (duration) of the mortgage. Generally, this means the percentage of interest will be a little higher since the lending institution may be losing money in the future if the interest rates rise. A fixed rate mortgage provides a buyer with the serenity of knowing the cost of their interest will stay the same over time. This means your payment and the amount that goes towards reducing the principal (original mortgage amount) will remain the same over time as well.

Variable Rate: A variable rate means the percentage of interest that you are repaying will vary based on the changes in the interest rate(s) of the overall market. Typically, fluctuations in your interest rate will not alter your monthly payment, but will vary the amount of your monthly payment that goes towards reducing your principal (original loan amount). This means if overall interest rates go down you will actually be paying off your mortgage more quickly. On the other hand, if interest rates increase, you will be paying off your mortgage more slowly. Accepting a variable rate does involve a certain amount of risk but can work to the advantage of the buyer over time.

Open Mortgage vs. Closed Mortgage

Open Mortgage: An open mortgage means that the loan can be paid back partially or in full without incurring any penalties. The mortgage can also be renegotiated if market conditions or your financial situation shift. Although an open mortgage provides more options and opportunities for life adjustments, this comes at a cost, as the interest rates for this type of loan tend to be higher. For those able to make larger payments or who plan on selling their home within a short period of time; however, an open mortgage can be a solid choice.

Closed Mortgage: The advantage of a closed mortgage is that the interest rates tend to be lower, but options are limited. Typically a homeowner may make extra payments or larger payments as long as the sum of the payments does not exceed a set amount determined in the loan agreement. Payments exceeding the agreed upon amount; however, would incur penalties.

Although most buyers will elect to choose a closed mortgage, there are advantages to choosing the open mortgage. For instance, if market conditions are expected to change, the type of mortgage should be balanced against the type of interest rate so that as the buyer your needs are met.