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When you find the best quote, secure your Ottawa mortgage rate by talking to a licensed broker or agent.
Canada’s capital is quickly becoming one of Canada’s most popular housing markets. If you're searching for a new home, doing a comparison of mortgage rates for Ottawa could save you thousands of dollars over the long term. You’re in luck: LowestRates.ca wants to help you find the best mortgage rates in Ottawa with almost no work on your part.
With our free, no-obligation service, LowestRates.ca lets you compare mortgage rates from 50+ Canadian banks and brokers. Just tell us what you want to do — buy, refinance, or renew — and how much you want to borrow. LowestRates.ca will show you the lowest Ottawa mortgage rates you might qualify for and connect you with the right broker.
All you have to do is tell us what type of financing you’re looking for and you’ll be on your way to securing the best house mortgage rates in Ottawa. Need more information? Keep reading to learn more about how getting a mortgage in Ottawa works.
Check out today's best mortgage rates in Canada by type and term.
| Insured ? | 80% LTV ? The rates in this column apply to mortgage amounts between 65.01% and 80% of the property value. The home must be owner-occupied and have an amortization of 25 years or less. You must have purchased it for less than $1 million. These rates are not available on refinances. Refinances require "Uninsured" rates. | 65% LTV ? The rates in this column apply to mortgage amounts that are 65% of the property value or less. The home must be owner-occupied and have an amortization of 25 years or less. You must have purchased it for less than $1 million. These rates are not available on refinances. Refinances require "Uninsured" rates. | Uninsured ? | Bank Rate ? | ||
|---|---|---|---|---|---|---|
Insured 6.44% | 80% LTV 5.29% | 65% LTV 5.29% | Uninsured 7.35% | 6.59% | ||
Insured 5.54% | 80% LTV 5.59% | 65% LTV 5.59% | Uninsured 5.84% | 6.19% | ||
Insured 4.79% | 80% LTV 4.79% | 65% LTV 4.79% | Uninsured 4.99% | 5.29% | ||
Insured 4.74% | 80% LTV 4.84% | 65% LTV 4.84% | Uninsured 4.89% | 5.19% | ||
Insured 4.44% | 80% LTV 4.64% | 65% LTV 4.44% | Uninsured 4.44% | 4.84% | ||
Insured 4.89% | 80% LTV 5.29% | 65% LTV 5.29% | Uninsured 5.89% | 5.9% | ||
Insured 5.69% | 80% LTV 5.84% | 65% LTV 5.84% | Uninsured 6.09% | 7.25% | ||
Insured 5.75% | 80% LTV 6.15% | 65% LTV 6.05% | Uninsured 6.05% | 8.35% | ||
Insured 5.65% | 80% LTV 5.8% | 65% LTV 5.7% | Uninsured 5.7% | 6.19% | ||
Insured N/A | 80% LTV N/A | 65% LTV N/A | Uninsured N/A | N/A | ||
Insured 5.25% | 80% LTV 5.25% | 65% LTV 5.25% | Uninsured 5.25% | N/A |
5.49%
5.05%
7.24%
On LowestRates.ca, customers can start an application for a number of different mortgage products. The two main types of mortgages you can apply for are conventional mortgages and high-ratio mortgages.
With a conventional mortgage, the homebuyer has to make a down payment of at least 20% of the home’s purchase price.
A high-ratio mortgage, on the other hand, is where homeowners put down less than 20% of the purchase price as a down payment. If this happens, buyers are required to purchase mortgage insurance from the Canada Mortgage and Housing Corporation (CMHC).
Take a look at our comparison of high ratio mortgages and conventional mortgages in Ontario.
| Date | Average Conventional Rate | Average High Ratio Rate |
|---|---|---|
| 07/23 | 5.54% | 5.14% |
| 08/23 | 6.22% | 5.42% |
| 09/23 | 6.00% | 5.61% |
| 10/23 | 6.14% | 5.87% |
| 11/23 | 6.15% | 5.77% |
| 12/23 | 5.92% | 5.56% |
| 01/24 | 5.66% | 5.29% |
| 02/24 | 5.30% | 5.05% |
| 03/24 | 5.17% | 4.92% |
| 04/24 | 5.10% | 4.91% |
| 05/24 | 5.12% | 4.98% |
| 06/24 | 5.13% | 5.03% |
Last Updated: July 1, 2024
Choosing between fixed rate and variable rate mortgages is one of the main decisions homebuyers and borrowers have to make when searching for mortgage rates.
While there are many differences between fixed rate and variable rate mortgages, the main one is that a fixed rate stays the same for the duration of your mortgage term. A variable rate, on the other hand, means that your rate will fluctuate with the changes in the Bank of Canada’s rate. Your lender will adjust it based on market conditions.
In the past three years, Canadian borrowers have witnessed big changes to mortgage rates. Especially in the last one year since Bank of Canada went on an overnight rate hike spree starting March 2022, mortgages have been a roller-coaster ride for borrowers. In January 2022, variable rates were preferred by borrowers because the rates were significantly lower than fixed rate mortgages. With rising inflation and Bank of Canada’s consecutive 10 rate hikes in one year, the trend in mortgage rates began to change and by late 2022 and early 2023, fixed rate mortgages were hovering lower than variable rate by almost a percentage point.
Economists in Canada predict that we are at the peak of policy rate hikes and a downturn in rates is imminent in 2024, however, borrowers are reluctant to lock in a higher rate for a higher term, such as 5-year term.
Borrowers are looking at fixed interest rates, which are lower than variable rates at this time for a shorter term, like 3-year or 4-year term.
Here’s a look at historical mortgage rate trends in Ontario over the past year.
| Month | Fixed | Variable |
|---|---|---|
| 07/23 | 5.30% | 6.36% |
| 08/23 | 5.59% | 6.50% |
| 09/23 | 5.70% | 6.54% |
| 10/23 | 5.90% | 6.52% |
| 11/23 | 5.84% | 6.51% |
| 12/23 | 5.64% | 6.44% |
| 01/24 | 5.44% | 6.34% |
| 02/24 | 5.22% | 6.44% |
| 03/24 | 5.07% | 6.34% |
| 04/24 | 4.98% | 6.30% |
| 05/24 | 5.07% | 6.32% |
| 06/24 | 5.06% | 6.39% |
Last Updated: July 1, 2024
Lenders look at a few things when deciding whether or not to approve your mortgage application, and what interest rates they’ll offer. Here are the major factors lenders consider when they calculate your mortgage rate for an Ottawa home.
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The average value of new mortgage loans in Ottawa-Gatineau region was $314,044 in Q1 2022, which was significantly higher compared to $292,912 in Q1 2023. In Q2 2023, the average value of new mortgage loan in Ottawa-Gatineau was $297,679, compared to $328,336 in Q2 2022.
The average scheduled monthly payments for new mortgage loans in Q1 2022 in Ottawa region was $1,444 compared to $1,818 in Q1 2023, an increase of almost $374. In Q2 2023 this remained high at $1,814 compared to the same period last year when it was $1,583.
The trend we witness here is that overall mortgage loan amount decreased while the monthly payment increased is due to the increase in interest rates and the Bank of Canada’s overnight rate hikes.
The Ottawa Real Estate Board (OREB) reportedly sold 1,263 residential properties in July 2023 compared with 1,102 in July 2022, an increase of 15%. July’s sales included 979 in the freehold properties (detached, semi-detached or townhouse), up 18% from a year ago, and 284 in the condominium-property category, a 6% increase from July 2022. The trend we see here is indicative of home buyers in Ottawa are unperturbed by the two recent quarter-percent interest rate hikes by the Bank of Canada.
The average sale price for a freehold (detached, semi-detached or townhouse) property in July was $754,188, an increase of 5% from 2022, and a 1% increase over June 2023 prices.
The average sale price for a freehold (detached, semi-detached or townhouse) property in July was $754,188, an increase of 5% from 2022, and a 1% increase over June 2023 prices.
The average sale price for an apartment condominium was $435,094, an increase of 2% from a year ago, although 3% lower than June 2023 prices.
With year-to-date average sale prices at $735,103 for freeholds and $433,447 for condos, these values represent a 9% decrease over 2022 for freehold-class properties and a 6% decrease for condominium-class properties.
OREB members forecast August to be a slower month, however, buyers look confident.
After buying your home, closing costs refer to all the odds and ends you need to close the deal. A general rule of thumb is to budget 1.5% of the home’s purchase price to cover closing costs (excluding the down payment). Closing costs may include:
Closing costs may include:
Closing costs may also include a provincial and/or municipal land transfer tax. The City of Ottawa charges homebuyers a provincial land transfer tax. The province of Ontario calculates land transfer in the following way:
| Purchase Price | Tax Rate |
|---|---|
| 0–$55,000 | 0.05% |
| $55,000–$250,000 | 1% |
| $250,000–$400,000 | 1% |
| $400,000–$2 million | 2% |
| $2 million + | 2.5% |
Example: on a home worth $500,000, you’d pay $6,475 in land transfer taxes.
The best mortgage rate in Ottawa can be found by comparing rates from different lenders. Lowestrates.ca connects you with 50+ lenders who will provide you a quote for mortgage rate best suited for your financial situation. No two lenders will give you the same rate. It is best to compare rates and mortgage terms before you zero-in on one rate.
In addition to choosing between a fixed or variable rate mortgage, Ottawa buyers will also need to decide between two types of mortgage payment structures: open or closed.
Open mortgage: This type of mortgage can be paid off in full at any time without penalty, and typically has a shorter term (up to five years). Open mortgages are more flexible and are geared toward people who want to make additional or increased mortgage payments, pay off the mortgage early, or move to a different home in the near future. But there’s a tradeoff: open mortgages interest rates are usually a little bit higher.
Closed mortgage: You’ll typically pay lower interest rates with a closed mortgage, but you’re required to make regular payments on a fixed schedule for the entire term. If you want to refinance, renegotiate or pay off your closed mortgage before the term is up, you’ll be charged a penalty. However, some lenders will allow you to make accelerated payments up to a certain amount each year. Every lender will have its own terms and conditions around closed mortgage prepayments.
Mortgage term: Homeowners are committed to their lender and mortgage contract for the duration of their mortgage term (the length of which is specified in the contract). At the end of the term, borrowers can renew their contract at a new rate. The most popular mortgage term in Canada is five years, though terms can range from six months to 10 years.
Amortization period: The amortization period refers to the duration of your mortgage. In other words, the total amount of time it will take you to pay off your loan’s principal plus the interest. In Canada, the maximum amortization period is 35 years. If your down payment is less than 20% of the total price of the home and you’re required to purchase CMHC mortgage insurance, your maximum amortization period is 25 years.
Depending on whether you’re a homeowner, renter, driver or commuter, your cost of living in Ottawa will vary.
There are some things to look out for, however, if you’re considering moving to Ottawa from another province.
In addition to your mortgage interest rate, prospective Ottawa homebuyers should consider a number of other costs to consider when thinking about relocating. If you own a vehicle, one of the biggest costs may be auto insurance. While Ottawa residents pay some of the lowest car insurance premiums in Ontario, the provincial average is still high (Ontario has the second highest car insurance rates in Canada). Ottawa has a lot of attractions that are popular with tourists and residents alike, which could also put additional strain on your wallet.
If you’re house hunting in Ontario, securing a low Ottawa mortgage rate is one great way to save money on your mortgage. However, it’s one of many things you can do to increase the overall affordability of your mortgage. Some of these features might include prepayment privileges and portability.
Prepayment privileges: Some banks and brokers will offer different prepayment terms, so it’s important to raise the issue before you sign your contract. A prepayment privilege allows you to pay off your mortgage early without having to pay an additional fee.
Penalties: If you need to break your mortgage, which you may need to do when you refinance or move, you may be required to pay thousands of dollars in penalties. While you may wind up with a better rate, if you choose to go with a different lender, it’s important to look at the fine print to ensure that it won’t cost you more than you’ll gain.
Portability: One way to avoid these penalties is to negotiate a portable mortgage. This means that if you move, you can transfer your mortgage to a new home and combine it with an additional mortgage loan.
LowestRates.ca works with 50+ Canadian banks and brokers to bring you Ottawa’s best mortgage rates. We work with our partners to obtain their best deals and offers, and then we let them compete for your business. All you have to do is answer a few questions, and in minutes you’ll be provided with today’s mortgage rates for Ottawa. There’s no obligation, but you can choose to speak with our broker partner to secure your best rate and see if you're eligible for more savings.
Yes, it’s safe — you no longer need to visit a bank branch or mortgage broker’s office in person to apply for a mortgage. It’s becoming increasingly common for Canadians to apply for mortgages online. LowestRates.ca only works with reputable, trustworthy financial institutions. Your credit score won’t be affected and your information is secure. We don’t share your information with anyone unless you want to connect with a mortgage broker. We take care of the heavy lifting by comparing the market for you and can connect you with the best mortgage lenders not only in Ottawa, but across the country.
We have a strong selection of lenders on LowestRates.ca including the big banks and many independent providers and we’re adding more lenders all the time. This ensures we’re always delivering you a competitive rate. Even if you’re not ready to commit to anything, you can use our site as a starting point for research (it’s totally free, and you’re under no obligation).
The better informed you are, the more likely you'll negotiate a better deal for yourself. And, really, that’s what we care about the most.
Shivani Kaul
About the Author
Shivani Kaul is a content manager in the personal finance space. Prior to this, she worked as a digital editor with Pagemasters North America (a division of The Canadian Press) for four years. Shivani has also worked as a freelance writer and editor for Investor's Digest of Canada and The Ghost Bureau.
She has more than a decade of experience working as an editor and writer for different news media organizations in Canada and South Asia. She has a Digital Marketing Management certification from the University of Toronto, a Master's degree in Mass Communication (Journalism) and a Bachelor's degree in English from the University of Delhi (India).
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