Key takeaways this week
- Variable-rate benchmarks remain lower than common 5-year fixed benchmarks, but variable payments or interest cost can change with prime.
- 3-year fixed remains a popular compromise for borrowers who want stability without a full 5-year lock-in.
- Uninsured, renewal, and refinance pricing requires a personalized quote; the insured purchase numbers do not apply to those scenarios.
- Eligibility: owner-occupied Ontario insured/high-ratio first-mortgage purchase, under 20% down, no longer amortization. OAC; borrower, property, lender, insurer, timing, and availability restrictions apply.
Current fixed vs variable benchmarks
| Option | Public benchmark | Who may consider it |
|---|---|---|
| 3-year fixed | 3.89% · $3,641/mo | Owner-occupied insured/high-ratio first purchase · Lowest rate observed |
| 5-year fixed | 3.94% · $3,659/mo | Owner-occupied insured/high-ratio first purchase · Lowest rate observed |
| 5-year variable | Prime 4.45% − 1.10% = 3.35% initially · $3,440/mo initially | Owner-occupied insured/high-ratio first purchase · Lowest rate observed |
Page purpose: This update compares several mortgage products and Bank of Canada context. For eligibility details, research dates, and the current single-value 5-year benchmark, use the dedicated Ontario 5-year fixed rate guide.
Payment examples use a $700,000 mortgage, 25-year amortization, and Canadian semi-annual compounding. They reflect the lowest owner-occupied rates observed in WOWA’s Ontario rate table and are estimates, not universally available offers.
Answer engine FAQ
Should I choose fixed or variable in Ontario right now?
Choose fixed if payment certainty matters most. Consider variable only if you understand that prime-rate movement can change payment or interest cost and you have enough budget flexibility.
Is a 3-year fixed mortgage better than a 5-year in Canada?
A 3-year fixed can be better for borrowers who want stability but expect to reassess sooner. A 5-year fixed may suit borrowers who value longer certainty and do not expect to move or refinance early.
Do these insured purchase rates apply to renewals or refinances?
No. Renewal and refinance pricing requires a personalized quote based on the borrower, property, lender, timing, and product. The insured first-purchase benchmarks on this page must not be used as renewal or refinance offers.
Do I need the stress test when switching lenders?
Stress-test rules can depend on whether you stay with the same lender, switch lenders, or borrow more. Confirm your situation before relying on a renewal offer.
Can self-employed people get a mortgage in Ontario?
Yes. Self-employed borrowers can qualify, but documentation may differ. Lenders may review tax returns, business financials, stated-income programs, down payment, credit, and business history.
Can newcomers to Canada qualify for a mortgage?
Yes, some lenders have newcomer mortgage programs. Requirements may include down payment, employment/income proof, credit history or alternative credit, residency status, and property details.
What to do next
Use the Mortgage Wave calculator, compare current Ontario mortgage rates, and ask for a personalized quote before making a financing decision.