Current Mortgage Interest Rates in Ontario (October 2026): 30-Year Rates, Payments & FAQ
What Are Current Mortgage Interest Rates?
Current mortgage interest rates are the annual rates lenders offer today on new mortgages, set by term (1 to 10 years), fixed or variable type, and borrower profile (insured, insured-eligible or uninsured). As of October 20, 2026, Canadian lenders advertise 5-year fixed and variable rates in ranges that differ by lender, so always check the dated table below before you compare offers.
Two benchmarks drive those ranges. Fixed rates follow Government of Canada bond yields. Variable rates follow each lender's prime rate, which moves with the Bank of Canada overnight rate. The next Bank of Canada announcement is scheduled for October 28, 2026, so rates can shift soon after this page is read.
Rates updated: October 20, 2026
| Benchmark | Current figure |
|---|---|
| Bank of Canada overnight rate | [add verified rate] |
| Prime rate | [add verified rate] |
| Next Bank of Canada announcement | October 28, 2026 |
| Term and type | Insured | Insured-eligible | Uninsured | Lender type |
|---|---|---|---|---|
| 1-year fixed | [verify] | [verify] | [verify] | Bank, credit union, monoline |
| 2-year fixed | [verify] | [verify] | [verify] | Bank, credit union, monoline |
| 3-year fixed | [verify] | [verify] | [verify] | Bank, credit union, monoline |
| 5-year fixed | [verify] | [verify] | [verify] | Bank, credit union, monoline |
| 5-year variable | [verify] | [verify] | [verify] | Bank, credit union, monoline |
For a live view of refinance pricing, see our page on current Ontario refinance rates. If you've seen American headlines, note that benchmarks like the Freddie Mac weekly survey describe the US market, which works differently.
Is there a 30-year mortgage rate in Canada?
Not in the American sense. Canadian mortgages have a term (typically 5 years) and a separate amortization (25 or 30 years). So "30-year rates" are really 5-year rates on a 30-year amortization.
Definition: mortgage rate
A mortgage rate is the interest charged on the borrowed principal. Canadian fixed-rate mortgages compound semi-annually by law. If you're new to the terminology, our explainer on the conventional mortgage covers the underlying mortgage type.
How Today's Mortgage Rates Work in Canada
In Canada, "30-year" refers to the amortization, not the term. Most borrowers choose a 5-year term on a 25- or 30-year amortization. Here's what shapes the rate and payment you'll actually get.
Posted rates vs negotiated rates
Banks' posted rates are often well above the discounted rates they offer, and the gap varies by lender. Brokers can access banks, credit unions, monolines and private lenders. Our mortgage broker vs bank comparison shows why those sources price differently. If you're unsure which lender type you're dealing with, read mortgage banker vs broker and bank vs mortgage company.
The stress test
You must qualify at the greater of your contract rate plus 2% or 5.25%. Your qualifying income matters as much as the advertised rate.
Amortization
Twenty-five years is standard. Since December 15, 2024, 30-year amortization has been available on insured mortgages for first-time buyers and buyers of new builds. Uninsured mortgages (20% or more down) can generally go to 30 years with many lenders.
Insured, insured-eligible and uninsured rates
Mortgage default insurance lowers lender risk, so insured rates are usually the lowest. Credit score, down payment, property type (owner-occupied, rental, condo, rural) and income documentation, including self-employed income, also move your rate.
What the payment looks like
A $300,000 mortgage at 7% costs about $2,101 per month on a 25-year amortization with semi-annual compounding. On 30 years, it's about $1,976. The table shows the same math for larger balances at 7% (illustrative). Add a column for today's rate on publication day.
| Mortgage amount | 25-year payment at 7% | 30-year payment at 7% |
|---|---|---|
| $300,000 | about $2,101 | about $1,976 |
| $500,000 | about $3,502 | about $3,293 |
| $750,000 | about $5,253 | about $4,939 |
| $1,000,000 | about $7,004 | about $6,585 |
Payment frequency matters too. Accelerated bi-weekly payments can reduce interest over the amortization, as we show in our guide to payment frequency.
Fixed vs variable vs HELOC
Variable and home equity line of credit rates are prime-based and move immediately when the Bank of Canada changes its rate. Fixed rates are locked for the term and reset at renewal. Our page on HELOC rates in Ontario explains how rate moves affect these products.
Smith Manoeuvre™ sensitivity
The Smith Manoeuvre™ uses a re-advanceable HELOC to borrow for investing, and the interest may be tax-deductible. Higher prime raises borrowing cost, so the expected investment return must exceed the after-tax interest.
Ontario and GTA affordability
Ontario land transfer tax applies provincially, and Toronto adds a municipal land transfer tax. Closing costs and GTA home prices raise both the down payment and the mortgage size. A 0.25% rate change matters more on a large balance.
Where to shop
Compare total cost, not just the headline rate. Prepayment penalties, portability and fees all count. Our guide to comparing mortgage offers walks through what to check.
Mortgage Rate FAQs
What is a 30-year mortgage rate right now?
Canada has 5-year terms on 30-year amortizations. Insured 30-year amortization is limited to first-time buyers and new builds (since December 15, 2024), and uninsured mortgages can often use it too. Some lenders add a small rate premium. Check the dated table above for today's ranges.
Will mortgage rates go down to 5% in 2027?
Nobody can say for certain. Fixed rates follow bond yields and variable rates follow the Bank of Canada. Big 5 bank economist forecasts and Bank of Canada guidance change often, so treat them as estimates, not promises. If you're deciding whether to lock in or wait, review the best refinance rates in Ontario before your rate hold or renewal date.
How much is a $300,000 mortgage at 7% interest?
About $2,101 per month on a 25-year amortization and about $1,976 on a 30-year amortization, using semi-annual compounding. The longer amortization lowers the payment but increases total interest.
Is a 7% mortgage rate high?
Compared with the last decade, yes. Compared with Canadian history, not extremely. Five-year rates were near 7% in 2023, and in the early 1980s they exceeded 20%. At 7%, the stress test requires qualifying at 9%.
How do changing rates affect my renewal or refinance?
At renewal, your new rate reflects the market on your maturity date, so payments can rise or fall. Refinancing changes the principal or terms and may carry penalties and fees. Our renewal vs refinancing guide explains the difference. Start comparing 120 days before renewal.
What do current rates mean for first-time buyers in Ontario?
First-time buyers may qualify for 30-year insured amortization, which lowers the monthly payment but raises total interest. You must still pass the stress test, and land transfer tax (including Toronto's municipal tax) adds to closing costs. Our first-time home buyer mortgage advice covers the down payment rules.
Can self-employed borrowers get today's best rates?
Often yes, if income can be documented. Some need alternative lenders, which may charge more. See our guide to qualifying for a mortgage when self-employed.
If you'd like help comparing today's options, you can reach Chris at Burns Mortgages for a no-pressure conversation.