Toronto Mortgage Rates 2026 — Compare Fixed vs Variable
lendsimpl shops 50+ banks, mono-line lenders, and credit unions to find the lowest Toronto mortgage rates for your specific situation. Rates shown are starting points — your actual best rate depends on purchase price, down payment, and credit profile.
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How to Compare Toronto Mortgage Rates in 4 Steps
Step 1
Confirm your borrower profile
Start with your down payment, purchase price, amortization, and credit profile because those change which lenders and rates you qualify for.
Step 2
Compare insured and uninsured pricing
Toronto properties above typical insured thresholds often price differently, so compare the rate impact before focusing on a single headline rate.
Step 3
Review fixed versus variable trade-offs
Rate alone is not enough. Compare payment certainty, prepayment privileges, and break penalties before you choose a term.
Step 4
Lock the best rate and apply
Once the strongest option is clear, secure a rate hold and submit the application before rates move again.
Toronto Mortgage Rate Guide 2026
Approximate rates as of 2026 — actual rates vary daily. Contact lendsimpl for today's live rates.
5-Year Fixed (Insured)
From ~4.39%Best for: First-time buyers, <20% down, wanting payment certainty
Lowest rate category in 2026 — default insurance reduces lender risk
5-Year Fixed (Uninsured)
From ~4.64%Best for: 20%+ down payment, refinances, $1M+ homes
Higher than insured but no CMHC premium required
5-Year Variable (Insured)
Prime − ~0.90%Best for: Rate risk tolerant, expecting Bank of Canada cuts
Fluctuates with BoC Overnight Rate; 3-month interest penalty if you break
3-Year Fixed
From ~4.59%Best for: Expecting rates to drop; plan to switch at renewal in 3 yrs
Good middle ground — shorter commitment than 5-year
2-Year Fixed
From ~5.09%Best for: Expecting major rate drops; short-term planning
Pay more now to lock in flexibility sooner
HELOC Rate
Prime + ~0.50%Best for: Homeowners wanting flexible equity access
Interest-only payments available; rate resets with Prime
*Rates are indicative and not confirmed until underwriting. OAC. Insured rates require CMHC/Sagen/Canada Guaranty default insurance. Connect with lendsimpl for today's exact rates.
Fixed vs Variable Mortgage Rates — Toronto 2026
Fixed Rate Mortgage
- ✓ Predictable monthly payments
- ✓ Protection if rates rise
- ✓ Budget certainty for families
- ✗ Higher rate than variable (typically)
- ✗ Large IRD penalty if you break early
Variable Rate Mortgage
- ✓ Lower starting rate historically
- ✓ Simple 3-month interest penalty
- ✓ Benefits from BoC rate cuts
- ✗ Payment uncertainty month-to-month
- ✗ Risk if BoC hikes rates
Toronto Mortgage Rate FAQs 2026
What is the best mortgage rate in Toronto right now in 2026?
The best Toronto mortgage rates in 2026 depend on your down payment, credit score, purchase price, and amortization. Insured mortgages (under $1M with <20% down) qualify for lower rates. lendsimpl typically finds 5-year fixed insured rates starting from 4.39–4.79% and variable rates from Prime minus 0.75% to Prime minus 1.05% for well-qualified borrowers. Contact lendsimpl for today's exact rates from 50+ lenders.
Should I choose fixed or variable mortgage rate in Toronto 2026?
In 2026, fixed rates offer payment certainty in a still-volatile rate environment. Variable rates offer lower starting rates but fluctuate with the Bank of Canada Prime Rate. With the BoC having cut rates in 2024–2025, variable rates are more attractive now. The right choice depends on your risk tolerance, financial buffer, and whether you plan to break the mortgage early (variable has a simpler 3-month interest penalty vs. potentially large IRD for fixed).
What is the difference between insured and uninsured mortgage rates in Toronto?
Insured mortgages (down payment under 20%, purchase price under $1.5M) require CMHC/Sagen/Canada Guaranty mortgage default insurance but qualify for lower rates — because the lender's risk is insured. Uninsured mortgages (20%+ down or refinances) have slightly higher rates. In Toronto 2026, the insured vs. uninsured rate spread is typically 0.05–0.30%.
What will Toronto mortgage rates do in 2026?
Most Canadian economists forecast the Bank of Canada Overnight Rate to remain in the 2.5–3.0% range through mid-2026, after cuts in 2024–2025. This suggests variable mortgage rates will be around Prime (approximately 4.70–5.20%) and 5-year fixed rates could remain in the 4.2–5.2% range. Rate forecasts change — lendsimpl monitors the market daily and times rate holds for clients.
Are Toronto mortgage rates higher than other Canadian cities?
No — mortgage rates themselves are national and not city-specific. However, in Toronto, higher home prices mean many transactions are over $1M (making them uninsured), which can mean slightly higher rates versus insured mortgages. The key driver of your rate is your credit profile, down payment percentage, amortization, and which lender lendsimpl selects for you.