As the most populous province in Canada, Ontario mortgage rates are the most competitive. Finding a suitable mortgage is as important as finding a home. We have gathered some information about mortgage types and current trends in the housing market to help you decide. We will also be addressing some frequently asked questions about mortgages.
Types of mortgages in Ontario
All Canadian provinces have similar mortgage options. Because Ontario has higher than average incomes, there is an increasing demand for large mortgages. In addition, property values in Ontario are higher than in other provinces. A vast majority of borrowers have their mortgages issued by a private company.
Current mortgage rates in Ontario
Ontario residents looking to purchase a home, renew or refinance their mortgage will be happy to know that the mortgage rates are low compared to previous years.
Ontario’s housing market
The housing market will keep growing with Ontario’s provincial government implementing plans to expand its population by 2041. As more people move to Ontario, the housing market will continue to rise with the growing population, especially in southern parts of the province. Also, the supply of homes is limited because the region has land protected by the green belt. With the population growth, the mortgage rates in Ontario are expected to rise and surpass the national average eventually.
Average house prices in Ontario
The mortgage amounts in Ontario will depend on what you can afford and where you plan to buy the house. Average home prices in select Ontario cities (according to the Canadian Real Estate Association) are as follows:
- Greater Toronto Area: $1,050,300
- Hamilton-Burlington: $879,100
- Ottawa: $671,400
Toronto commands the highest average cost for a home and hence the highest mortgage amounts of Ontario’s top three municipal areas, while Ottawa is the lowest. If you wish to live in the Sudbury area, the city boasts the lowest average mortgage amount in the province at $308,000.
Frequently asked questions
Here are some of the frequently asked questions about the mortgage rates in Ontario:
What are the mortgage rates in Ontario right now?
Currently, the mortgage rates in the province are at their lowest in recent years. However, the interest rate you get will depend on certain factors including, your LTV, credit score, and more. You will also need to choose the mortgage type and the term and consult with a lender or mortgage broker to get the best interest rate.
Who will give you the best mortgage rates in Ontario?
There are two types of mortgage providers in Ontario: banks and mortgage brokers. Mortgage Maestro has access to over 50 lenders to present you with mortgage options and help you find the right choice for your financial needs.
What is the minimum required down payment for a mortgage in Ontario?
Down payment is the upfront amount paid to purchase a house. As a buyer, you pay a minimum down payment of 5% for homes costing $500,000 or less. For homes costing between $500,000 and $999,999, buyers must pay 5% of the first $500,000 and 10% for the remaining amount. All homes valued over $1 million need a 20% or more down payment.
Is the lowest mortgage rate the best rate?
The lowest mortgage rate is not always the best. It can come with cons, including high penalties and fluctuating rates based on the market. It is essential to consider the terms and conditions of each mortgage before making a decision.
Mortgage Maestro can help you find the lowest interest rates in Ontario. Call our experts today and get a quote for your financing needs.