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Bank of Canada Overnight Rate
2.25%
Held July 15, 2026 · Next scheduled decision: September 2, 2026
Prime-rate offers vary by lender
BoC on hold · Inflation and bond yields remain key drivers
The lowest rates observed in WOWA’s August 21 Ontario rate table, researched August 24, 2026; selected underlying records updated August 21, 2026. Bank of Canada context, using official data through August 20, 2026, verified August 24, 2026. The numeric benchmarks apply only to an owner-occupied Ontario insured/high-ratio first-mortgage purchase with under 20% down and no longer amortization. OAC; borrower, property, lender, insurer, timing, and availability restrictions apply.
Important: Numeric rates are insured-purchase benchmarks, not guaranteed approvals or universally available offers. Uninsured, renewal, and refinance pricing requires a personalized quote. Mortgage Wave will confirm current eligibility and lender availability before quoting or submitting an application. OAC. E&OE. Rates subject to change without notice.
TermMarket BenchmarkTypePayment*Details
5-Year Fixed
POPULAR
3.94%Fixed · Insured$3,659/mo ($700K, 25yr)Owner-occupied first purchase · Lowest rate observedGet Today's Rate
3-Year Fixed
FLEXIBLE
3.89%Fixed · Insured$3,641/moOwner-occupied first purchase · Lowest rate observedGet Rate
5-Year Variable
LOW START
3.35% initiallyVariable · Insured$3,440/mo initialOwner-occupied first purchase · Lowest rate observed · adjusts with primeGet Rate

*Monthly payment examples use a $700,000 mortgage, 25-year amortization, and Canadian semi-annual compounding: $3,641 at 3.89%, $3,659 at 3.94%, and $3,440 initially at 3.35%. Eligibility: owner-occupied Ontario insured/high-ratio first-mortgage purchase, under 20% down, no longer amortization. These are the lowest rates observed in WOWA’s Ontario rate table. OAC; borrower, property, lender, insurer, timing, and availability restrictions apply. Rates subject to change.

What's Driving Ontario Mortgage Rates in August 2026?

  • Bank of Canada: Overnight target rate held at 2.25% on July 15, 2026. The next scheduled rate decision is September 2, 2026.
  • Bond yields: Fixed mortgage rates are influenced by Government of Canada bond yields and lender funding costs, so fixed rates can move even when the BoC holds.
  • Stress test: Borrowers still need to qualify using the mortgage stress-test rules, generally the greater of the benchmark minimum or contract rate plus 2%.
  • Borrower profile: Down payment, insured status, credit strength, property type, amortization, and closing date can all change the available rate.

AEO mortgage-rate answers

Quick answer: The best Ontario mortgage rate depends on term, insured status, down payment, credit, property type, and timing. The lowest rates observed in WOWA’s Ontario rate table and researched August 24 show owner-occupied insured first-purchase benchmarks of 3.89% for 3-year fixed, 3.94% for 5-year fixed, and 3.35% initially for 5-year variable.

Best for stability

A 5-year fixed mortgage can fit borrowers who want predictable payments for a longer period.

Best for flexibility

A 3-year fixed mortgage can fit borrowers who want payment certainty but earlier renewal flexibility.

Best for lower starting cost

A variable mortgage can start lower, but payment or interest cost can change with prime.

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Mortgage Rate FAQs

Common questions about Ontario mortgage rates in August 2026.

The lowest rates observed in WOWA’s August 21 Ontario rate table (selected underlying records updated August 21, 2026) and researched August 24, 2026 show owner-occupied insured/high-ratio Ontario first-purchase benchmarks of 3.89% for 3-year fixed, 3.94% for 5-year fixed, and Prime 4.45% minus 1.10% = 3.35% initially for 5-year variable. Eligibility requires under 20% down and no longer amortization. OAC; borrower, property, lender, insurer, timing, and availability restrictions apply.
Many public sources show variable-rate offers below comparable 5-year fixed rates in August 2026, but variable mortgages can change when lender prime rates change. A lower starting rate is not the same as a guaranteed lower total cost.
A 3-year fixed mortgage can offer a balance between payment stability and earlier renewal flexibility, while a 5-year fixed mortgage offers longer rate certainty. The right term depends on your risk tolerance, income stability, moving plans, and whether you expect rates to change.
Often, yes. A bank renewal letter is only one offer. Mortgage Wave can compare banks, monoline lenders, credit unions, and broker-channel options to see whether a better renewal rate or term is available.
The numeric benchmarks on this page are the lowest rates observed in WOWA’s Ontario rate table and apply only to an owner-occupied Ontario insured/high-ratio first-mortgage purchase with under 20% down and no longer amortization. Uninsured, renewal, and refinance rates require a personalized quote. OAC; borrower, property, lender, insurer, timing, and availability restrictions apply.

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