What Are Mortgage Rates in Vaughan? (May 28, 2025 Update)
If you’re planning to buy a home in Vaughan or refinance an existing mortgage, keeping an eye on mortgage rates in Vaughan is essential. As of Wednesday, May 28, 2025, interest rates remain elevated, continuing to shape the real estate landscape for prospective buyers across the Greater Toronto Area (GTA).
Current Mortgage Rates in Vaughan
As of today, mortgage rates in Vaughan are:
3.94% for a 5-year fixed mortgage
4.24% for a 3-year fixed mortgage
While these rates are historically higher than the ultra-low rates we saw during the pandemic, they are still competitive if you shop around and compare offers. A slight difference in mortgage rates can mean thousands of dollars over the life of your loan, so working with a knowledgeable mortgage agent is more important than ever.
The Impact of High Mortgage Rates
Today’s higher mortgage rates are making it significantly more difficult for many Vaughan residents to qualify for a home loan. With tighter affordability criteria, stress test regulations, and higher monthly payments, it’s no surprise that many potential buyers are hitting the pause button.
If you’re wondering whether to buy now or wait, you’re not alone. Unfortunately, timing the market is tricky—even for the experts.
Will Mortgage Rates Go Down?
While it’s nearly impossible to predict precisely when rates will drop meaningfully, most economists forecast a gradual decline over the next few years. That said, even if interest rates soften slightly, we may not see the ultra-low rates of previous years for quite some time. If you’re planning a move, the key is to focus on what you can afford now and work with a mortgage expert to explore your best financing options.
What’s Happening with Home Prices?
While mortgage rates in Vaughan remain high, home prices are showing signs of moderation. According to the Canadian Real Estate Association (CREA), the national average home price in April 2025 was $701,900, representing a 3.6% year-over-year decrease.
Ontario Home Prices
Ontario Average: $812,500 (down 6.8%)
Toronto: $1,009,400 (down 5.4%)
Ottawa: $631,200 (up 1.1%)
Hamilton: $801,400 (down 6.7%)
London: $589,000 (down 3.1%)
Although Vaughan-specific figures were not published in this report, Vaughan home prices generally follow similar trends to those of the Toronto and GTA markets. That means prices are likely down from their peak, offering some opportunities for buyers with secure financing.
Navigating the Market: What Should You Do?
Given the current landscape of high mortgage rates in Vaughan and moderating home prices, here are a few strategies to consider:
1. Get Pre-Approved for a Mortgage
This provides a clear understanding of your affordability and locks in your interest rate for 60 to 120 days, shielding you from potential rate hikes while you shop.
2. Compare Lenders Carefully
Don’t settle for the first mortgage offer. Compare rates from banks, credit unions, and mortgage brokers to find the best option for you. Even a fraction of a percent difference in rates can save you thousands.
3. Work with a Mortgage Agent in Vaughan
A local expert understands Vaughan’s market dynamics and can match you with lenders who offer the best terms for your situation.
Pash Financial Services Has Your Back
At Pash Financial Services, we know the mortgage market inside and out—and we’re here to help you navigate it with confidence. Whether you’re a first-time buyer, upgrading to a larger home, or refinancing in a challenging rate environment, our experienced Mortgage Agents in Vaughan are here for you.
We take the stress out of the process by helping you:
Understand your mortgage options
Compare the most competitive mortgage rates in Vaughan
Prepare for affordability tests and pre-approvals
Negotiate the best terms for your financial goals
| Lender | 3‑year fixed | 5‑year fixed | 5‑year variable |
|---|---|---|---|
| First National | 4.29% | 4.39% | 4.30% |
| National Bank | 6.05% | 6.09% | 4.95% |
| RBC | 6.05% | 6.09% | 4.95% |
| TD | 6.05% | 6.09% | 5.10% |
| Desjardins | 6.29% | 6.39% | 4.95% |
| Scotiabank | 6.44% | 6.39% | 5.40% |
| CIBC | 6.64% | 6.49% | 4.95% |
| nesto | 4.24% | 3.94% | 4.05% |
Vaughan Mortgage Rate Trends – May 2025
If you’re considering buying a home or renewing your mortgage in Vaughan, staying informed on current trends is critical. As of May 2025, mortgage rates in Vaughan remain elevated, and financial experts anticipate this trend may continue for some time.
Mortgage Rate Outlook for Vaughan
Predicting the exact direction of mortgage rates is always a challenge, but many economists agree that rates are likely to stay higher for longer. Most forecasts suggest that interest rates won’t return to the “neutral” range of 2% to 3% until late 2025, if not later.
Bank of Canada Update – Interest Rate Hold
In its most recent announcement on April 16, 2025, the Bank of Canada (BoC) held its policy rate steady at 2.75%, pausing its cycle of rate cuts. This decision was influenced by growing economic uncertainty and ongoing trade tensions, which have made businesses and consumers cautious.
While inflation has eased, the BoC cited shelter costs—especially rent and mortgage interest—as the leading contributors to inflation. The central bank reaffirmed its commitment to price stability and will continue to monitor core inflation as it determines future rate movements.
The Bank of Canada’s (BoC) rate announcement is scheduled for June 4, 2025. Currently, market data suggests a 50/50 chance of a 0.25% rate cut, based on forward-looking bond market indicators.
Real Estate Market Update: April 2025
On May 15, 2025, the Canadian Real Estate Association (CREA) released data showing home sales were essentially unchanged in April, down only 0.1% compared to March. Although mortgage rates are high, ongoing economic uncertainty, particularly surrounding tariffs, appears to be doing more to keep buyers on the sidelines.
New listings declined by 1% month-over-month.
Housing inventory is trending back to normal, thanks to higher supply in Ontario and British Columbia.
Inflation and Cost of Living
Statistics Canada’s latest Consumer Price Index (CPI) report, released May 20, revealed that inflation slowed to 1.7% year-over-year in April, down from 2.3% in March.
Key factors:
Energy prices declined sharply (-12.7%)
Gasoline prices dropped (-18.1%) due to the removal of the federal carbon tax
Food prices rose (+3.8%)
Travel costs increased (+6.7%)
While lower inflation is a positive sign, high housing-related costs continue to pressure Canadians, especially in markets like Vaughan.
Vaughan Mortgage Options Explained
There are several types of mortgage products available in Vaughan, each suited to different buyer needs and financial situations.
Conventional Mortgage (Uninsured)
Requires a minimum 20% down payment
No need for mortgage insurance
No cap on purchase price
Suitable for homes over $1 million
High-Ratio Mortgage (Insured)
Requires less than 20% down payment
Must purchase mortgage default insurance
The purchase price must be under $1 million
Fixed-Rate Mortgage
Offers a stable interest rate for the term
Monthly payments remain consistent
Early break penalties are calculated by the higher of the interest rate differential (IRD) or 3 months’ interest
Variable-Rate Mortgage
Interest rates fluctuate with the Bank of Canada’s policy rate
Two types:
Adjustable-Rate Mortgages (ARM): Monthly payment adjusts with rate changes
Variable-Rate Mortgages (VRM): Monthly payment stays the same, but the amount allocated to principal and interest shifts with rate movements
What Affects Your Mortgage Rate in Vaughan?
Mortgage rates aren’t one-size-fits-all. Lenders assess risk based on several borrower and property-specific factors. These include:
1. Down Payment
The more you put down, the lower your loan-to-value (LTV) ratio will be. Lower LTVs reduce lender risk and qualify you for better rates.
2. Amortization Period
Insured mortgages: Max amortization of 25 years
Uninsured mortgages: May go up to 30 years, but often come with higher rates due to increased lender risk
3. Property Usage
Primary residences usually qualify for lower rates
Rental properties tend to have higher rates
Owner-occupied homes with secondary suites may still qualify as primary residences
4. Mortgage Type
Open mortgages offer flexibility but come with higher interest rates
Refinances tend to have higher rates than renewals or new purchases
5. Credit Score
Prime lenders typically require a strong credit score
If your score is lower, you may need to explore alternative lenders with higher rates
First-Time Home Buyer Programs in Ontario
To help with affordability, Ontario offers several incentives for first-time buyers:
Ontario Land Transfer Tax Rebate: Up to $4,000 off the provincial land transfer tax
Municipal Down Payment Assistance Programs: Varies by city or region
First-Time Home Buyers Tax Credit (HBTC): Federal credit worth up to $1,500
How to Get the Best Mortgage Rate in Vaughan
Finding the best mortgage rate in Vaughan requires preparation and innovative financial planning:
Step 1: Check Your Credit Score
Know where you stand and correct any errors before submitting your application.
Step 2: Determine Your Borrowing Power
Use income and down payment information to calculate how much you can afford.
Step 3: Identify Your Mortgage Needs
Do you want rate stability or flexibility? How long do you plan to stay in your home?
Step 4: Develop a Mortgage Strategy
Work with a mortgage expert to align your mortgage with your long-term goals, not just the lowest rate.
Step 5: Compare Offers
Not all lenders offer the same terms. Shop around or work with a mortgage broker to evaluate multiple options.
Step 6: Get Prequalified
Prequalification helps you understand your limits and puts you in a stronger position when making offers.
Pash Financial Services Has Your Back
At Pash Financial Services, we know that every borrower is different. Whether you’re purchasing your first home, upgrading, or refinancing, we’ll help you secure the best mortgage rate in Vaughan, tailored to your financial goals and unique needs.
Reach out today to speak with an experienced Mortgage Agent in Vaughan. We’ll walk you through the entire process, from prequalification to closing, so that you can buy with confidence, even in a challenging market.