Beating the Average Mortgage Rate in Ontario

By : Edi Marinescu

Mortgage rates have a direct influence on the affordability of a loan. Interest is money that would be better used going towards equity, so it’s important to find a mortgage with the lowest rate possible. The average mortgage rate in Ontario is often misleading because banks don’t offer it to every customer. The best customers get the best rates, while those beyond the median get higher rates because they have higher perceived risk.

If you are working directly with a bank or any other financial institution, you’ll be affected in some way by the average mortgage rate in Ontario. But, if you work with a licensed mortgage broker, you’ll get the very best rate possible for your creditworthiness. You could even beat the average mortgage rate in Ontario depending on your scenario.

What Does the Average Mortgage Rate in Ontario Look Like Today?

Mortgage rates are in a constant state of change. They move up and down, which is why fixed mortgages are so popular when rates are low.

The average mortgage rate in Ontario is sometimes difficult to determine. Especially because the rate today could be different next week and vastly different in a few months.

If we’re looking at major banks today in the third quarter of 2021, the average fixed rate between different banks ranges from around 1.54%, up to around 1.90% at some. The average variable rate can be seen as low as 0.90% on a five-year term at some large lenders, and as high as 2.45% at others.

Even just looking at these figures, you can see that there’s a decent spread when considering the average mortgage rate in Ontario. To find the best one, you’d have to research all the different banks and lending institutions. Even then, the rate finally offered could be below their average, especially if you don’t meet the profile of their ideal borrower.

It can be incredibly frustrating for families and individuals. Even those that are in relatively good financial health.

Why You Shouldn’t Simply Accept the Rates of Mainstream Lenders

Observing the variance in even just a few figures as we’ve mentioned above, it’s easy to see that the “average mortgage rate in Ontario” can mean something different depending on where you look.

If you were to visit one bank, or research their rate online, submit your application, and sign for the mortgage, you likely wouldn’t be getting the best available rate. If you chose one of the lenders with a higher rate, you’d miss out on savings that other homebuyers are enjoying right now.

It’s unreasonable to expect the average person to research every single lender available. This is why many lending institutions can advertise the rates that they do. There’s also the fact that large lenders have a lower tolerance for risk, so their best rates are never advertised or offered directly to the average consumer.

Get Better Mortgage Rates with a Licensed Mortgage Broker

The only way to beat the average mortgage rate in Ontario is to have an advocate within the industry that can shop for the best products with the best rates, no matter what your current financial situation is.

That’s exactly where a mortgage broker can help. A broker is your personal representative within the market. They will assist with the preparation of your documents, assess your financials, explore the market, and prepare the best offers for you to consider.

A mortgage broker works with more than just banks and large institutions. They work with B Lenders as well as private mortgage lenders. If you have poor credit or other risk elements that a bank doesn’t like, your broker will be able to find a mortgage for you with the best possible rate on the market.

Your broker doesn’t lend money. They’re a professional financial resource that has fostered relationships with lenders, accountants, real estate professionals, lawyers, and others. They work for you, not the lender, so you’ll always get offers that are customized to your unique needs.

Mortgage Capital Investment Can Help You to Beat the Average Mortgage Rate in Ontario

Whether it’s through the vast network of conventional lenders or unconventional lenders for buyers with spotty credit history, mortgage brokers make buying a home possible for millions of Canadians in every province.

If you’re in Ontario, you can start your journey towards homeownership with Mortgage Capital Investment. We are a licensed brokerage committed to finding the fairest mortgages with the best rates. Your financial history or current income doesn’t have to be a roadblock to your dream. Beat the average mortgage rate in Ontario by talking with Mortgage Capital Investment today.

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Lowest Residential Mortgage Rates in Canada*

Term OUR RATE Bank Rate
3 Year Fixed/ 25 yrs 1.69 2.250%
3 Year Variable/ 25 yrs 0.99% Promo 1.86%
5 Year Fixed/ 25 yrs 2.09% 2.34%
5 Year Variable/ 25 yrs 1.10% Promo 1.65%
5 Year Fixed/ 30 yrs 2.29% Promo 2.34%
5 Year Variable/30y 1.45 1.85

Updated: NOV 29 , 2021

* Current promotion rates may provide an additional 0.05% discount. Rates may vary between geographic regions and the posted rates on this website may not be available in your area. Please contact our MCI office for more details and current promotions.

LOWEST REGULAR RATES IN CANADA*   * Current promotion rates may provide an additional 0.10% discount. Rates may vary between geographic regions and the posted rates on this website may not be available in your area. Please contact our MCI office for more details and current promotions.

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