Overview
Mortgage rates in Ottawa remain competitive in mid-2025, supported by the city's relatively affordable real estate market and higher-than-average household incomes. Major Canadian banks and lenders offer a range of fixed and variable mortgage products, with rates varying slightly between institutions. Ottawa's market is especially attractive to first-time buyers, given the lower average home prices and down payment requirements compared to cities like Toronto.
Current Ottawa Mortgage Rates
Here is a comparison of popular fixed and variable mortgage rates from leading Canadian lenders as of July 2025:
| Lender | 3-Year Fixed | 5-Year Fixed | 5-Year Variable | Notes |
|---|
| RBC | 4.44% | 4.49% | 4.55% | Special offers |
| National Bank | 4.44% | 4.49% | 4.99% | Posted rates |
| Desjardins | N/A | 4.64% | 4.60% | Special rate |
| TD | 4.49%* | N/A | See branch | Special rate |
*TD's posted special rate for 3-year fixed; 5-year rates require direct inquiry.
Key Points
- Fixed rates (3 or 5 years) generally range from 4.44% to 4.64% among major banks.
- Variable rates are available as low as 4.55% (RBC) to 4.99% (National Bank).
- Ottawa's average home price is around $628,000–$660,000 as of 2024–2025, making the required minimum down payment much lower than in Toronto.
Ottawa Mortgage Market Conditions
- Affordability: Ottawa’s average home price is less than 8 times the median household income, compared to roughly 14 times in Toronto. This means passing the mortgage stress test and affording a down payment is significantly easier for most buyers in Ottawa.
- Down Payment: For the average Ottawa home ($660,000), the minimum down payment is approximately $41,000—well below what is required in more expensive markets.
- Income: Median household income in Ottawa is about $83,000, supporting mortgage affordability.
Major Canadian Bank Offerings
- Royal Bank of Canada (RBC): Up to $5,700 in incentives for eligible new mortgages, with competitive rates on both fixed and variable products.
- TD Canada Trust: Offers personalized rate advice and mortgage pre-approval, highlighting Ottawa's below-average home prices and affordability.
- National Bank & Desjardins: Special fixed and variable rates with additional mortgage options for flexible repayment.
Government Programs & Incentives
First-Time Homebuyer Programs (Canada-wide)
- First-Time Home Buyer Incentive: Shared-equity program to reduce monthly payments.
- Home Buyers’ Plan (HBP): Withdraw up to $35,000 from RRSPs tax-free for a down payment.
- Land Transfer Tax Rebates: Ontario offers rebates up to $4,000 for first-time buyers.
Ottawa/Province-Specific
- Most Ottawa home purchases are below $1 million, so federal mortgage insurance and related programs apply.
- Ontario-specific support includes additional land transfer tax rebates.
Provincial Regulations and Considerations
- Ontario: Standard mortgage qualification rules apply, including the federal mortgage stress test.
- Ottawa: No municipal land transfer tax, making closing costs lower than in Toronto.
Rate Comparisons
| City | Avg. Home Price | Min. Down Payment | Home Price-to-Income Ratio |
|---|
| Ottawa | $660,000 | ~$41,000 | ~8x |
| Toronto | $1,080,000 | ~$216,000 | ~14x |
Actionable Next Steps
- Compare rates: Use platforms like theratefinder to find and compare the most competitive mortgage rates from top Canadian lenders.
- Pre-qualification: Get pre-approved to determine your borrowing limit and lock in a rate.
- Government incentives: Explore eligibility for first-time homebuyer programs and rebates.
- Consult a local specialist: Ottawa-based mortgage advisors can help navigate local market nuances and lender options.
Start your mortgage application with a personalized, multi-step process at theratefinder for access to top rates and tailored solutions from Canada’s leading lenders. Visit theratefinder.ca/onboarding to begin.
Summary
Ottawa’s mortgage market offers competitive fixed and variable rates, attractive affordability, and strong government support for homebuyers. Whether you’re a first-time buyer or looking to switch, comparing rates and taking advantage of available incentives can help you secure the best possible mortgage for your needs.