Broker floor: 4.44% · Bank average: 4.69% · Stress test qualifying rate: 6.44%. For good credit (680–749) borrowers doing a purchase in Ontario.
Paid report options after the free check: Rate Fairness Report CA$24 · Full Renewal Decision Report CA$49. No broker calls. No data sold.
Fixed rate mortgages are priced from the Government of Canada 5-year bond yield (currently approximately 3.12%) plus a lender spread. The broker floor adds approximately 1.00% to the bond yield; the bank average adds approximately 1.35%. For good credit borrowers, an additional 25 basis points applies above the excellent-credit baseline.
The result for a 3-Year fixed mortgage with good credit is a broker floor of 4.44% and a bank average of 4.69%. These are the two anchors used to evaluate any offer. On a $500,000 mortgage, the benchmark payment is approximately $2,641/month and this combination's rate produces approximately $2,751/month — $110 more than the 5-year fixed excellent-credit benchmark.
Rates are illustrative based on Bank of Canada benchmark data and do not constitute a lender quote. Verify current rates with your lender.
| Rate anchor | Rate | What it means |
|---|---|---|
| Broker floor | 4.44% | Lowest rate available through the broker channel for this profile |
| Bank average | 4.69% | Typical rate at major bank retail branches |
| Posted ceiling | 5.99% | Bank's starting-point rate before discounting — never pay this without negotiating |
| Stress test qualifying rate | 6.44% | Rate used to calculate maximum qualifying mortgage (contract rate + 2%, min 5.25%) |
Ontario charges a provincial Land Transfer Tax (LTT). Toronto buyers also pay a Municipal Land Transfer Tax at identical rates — doubling the LTT cost.
First-time buyer rebate: Ontario first-time buyers receive a provincial LTT rebate up to $4,000. Toronto adds a municipal rebate up to $4,475. Rebates apply automatically at closing through your lawyer.
Toronto Municipal LTT applies at the same brackets on top of provincial LTT. On a $700,000 Toronto purchase, combined LTT is approximately $22,950.
Mortgages in Ontario are regulated by the Financial Services Regulatory Authority of Ontario (FSRA). Straight renewals at the same Ontario lender are exempt from stress test re-qualification. Switching lenders at renewal requires full requalification at the qualifying rate.
| Value threshold | Tax rate |
|---|---|
| Up to $55,000 | 0.5% |
| Up to $250,000 | 1.0% |
| Up to $400,000 | 1.5% |
| Up to $2,000,000 | 2.0% |
| Above prior bracket | 2.5% |
Good credit (680–749 credit score) qualifies you for most mainstream mortgage products at competitive rates. The rate premium over excellent credit is typically 25 basis points at this tier.
Good credit borrowers typically pay approximately 25 basis points (0.25%) above excellent credit borrowers. On a $500K mortgage, this is approximately $110/month or $1,320/year in estimated additional interest — based on current benchmark rates.
Improving your credit tier: Improving from good to excellent credit could reduce your rate by approximately 0.25%, saving an estimated $110/month on a $500K mortgage. Over a 5-year term, this represents approximately $6,600 in estimated savings.
To move from good to excellent credit: pay down revolving balances below 20% utilization, maintain all payments on time for 6–12 months, and avoid new credit inquiries in the 90 days before applying.
A 3-year fixed term balances certainty with flexibility. Historically, 3-year rates have sometimes been at or near 5-year rates, occasionally below. It's a popular choice when the 3-year rate is within 10–15bps of the 5-year rate.
Typical borrower profile: 3-year fixed borrowers often include those who want medium-term certainty without a 5-year commitment, or those who purchased at higher prices and expect more equity within 3 years.
Rate vs 5-year benchmark: 3-year fixed rates currently sit approximately +0.40% versus the 5-year fixed broker floor. 3-year and 5-year rates are often close, depending on the yield curve.
Tradeoff vs 5-year fixed: A 3-year term completes before a 5-year term, providing an earlier window to access equity, switch lenders, or benefit from rate changes. The tradeoff is earlier exposure to renewal rates.
A purchase mortgage in Ontario requires full stress test qualification at 6.44% (your contract rate plus 2%, minimum 5.25%). This qualifying rate determines your maximum insured or conventional mortgage amount regardless of your actual contract rate.
Stress test: All new purchase mortgages require qualification at the stress test rate of 6.44%. Your lender calculates your maximum mortgage based on your gross income at 6.44%, not the actual contract rate — meaning you may qualify for a smaller mortgage than the contract payment suggests.
CMHC insurance: Fixed rate purchases with less than 20% down are CMHC-eligible on homes under $1,500,000 (as of December 2024). Premiums are added to your mortgage principal at closing.
Special considerations: For Ontario purchases: factor land transfer tax, legal fees, home inspection, and title insurance into your total closing cost budget. Ontario first-time buyers receive a provincial LTT rebate up to $4,000. Toronto adds a municipal rebate up to $4,475. Rebates apply automatically at closing through your lawyer.
For a 3-Year fixed mortgage at a contract rate of 4.44%, the federal stress test qualifying rate is 6.44% (the contract rate plus 2%, minimum 5.25%).
On a $500,000 mortgage at the qualifying rate of 6.44% over a 25-year amortization, the monthly payment would be approximately $3,331/month. Lenders apply a 32% Gross Debt Service (GDS) ratio to determine the qualifying income, meaning total housing costs — principal, interest, property tax, and heat — cannot exceed 32% of your gross income.
Stress test calculations are for illustrative purposes only. Your lender will apply the qualifying rate to your specific balance, amortization, and income documentation.
Based on current Bank of Canada benchmark data, 3-Year fixed mortgage rates for good credit borrowers (680–749 credit score) in Ontario range from approximately 4.44% (broker floor) to 4.69% (bank average). The posted ceiling is 5.99%. These are illustrative rates based on BoC fallback data — actual rates vary by lender, insured status, and individual profile. Always verify with your lender.
All new purchase mortgages require qualification at the stress test rate of 6.44%. Your lender calculates your maximum mortgage based on your gross income at 6.44%, not the actual contract rate — meaning you may qualify for a smaller mortgage than the contract payment suggests.
With a 3-Year fixed mortgage at 6.44% (stress test qualifying rate), a $500,000 mortgage on a 25-year amortization requires approximately $124,413 in gross annual income to qualify at a 32% GDS ratio. Good credit borrowers in Ontario should work with a broker to confirm their specific qualifying income.
A 3-year term completes before a 5-year term, providing an earlier window to access equity, switch lenders, or benefit from rate changes. The tradeoff is earlier exposure to renewal rates.