Buying a home or refinancing in Peterborough, Ontario, in 2025 means one thing: securing the best possible mortgage rate. Even a slight difference in rates can translate into thousands of dollars saved over the life of your loan. In this updated guide, we’ll break down current mortgage trends, average rates, and what Peterborough homeowners and buyers should know before locking in.

Why Mortgage Rates Matter in 2025

With the Bank of Canada keeping a close watch on its benchmark rate, mortgage rates remain a hot topic. According to the Canadian Real Estate Association (CREA), Peterborough’s market has shown resilience, with steady sales activity in 2024 carrying into early 2025. Buyers are more cautious, making it even more essential to secure the lowest mortgage rate.

Average Mortgage Rates in Ontario (as of August 2025)

• 5-Year Fixed: ~4.89%*
• 3-Year Fixed: ~4.64%*
• 5-Year Variable: ~5.35%*

(*Rates are averages and vary by lender, credit score, and down payment. Call Mike Cara, your trusted mortgage broker in Peterborough, for today’s best available rates.)

How Rates Affect Affordability in Peterborough

Let’s say you’re buying a $600,000 home in Peterborough with 20% down:

• At 4.89%, your monthly payment ≈ $2,550.
• At 4.64%, your monthly payment ≈ $2,490.

That’s a $60 monthly savings — or over $14,000 saved over 25 years.

Broker vs. Bank in 2025

• Banks: Often advertise posted rates that are higher than what’s truly available.
• Mortgage Brokers: Work with multiple lenders to find your best rate, providing access to exclusive deals that may not be available directly from banks.

Local Insight – Peterborough’s Market

Peterborough continues to attract first-time buyers and retirees looking for affordability compared to the GTA. With average home prices in the mid-$600,000 range in mid-2025, competitive rates can significantly impact affordability.

How to Get the Best Rate in Peterborough

1. Improve your credit score (a score of 720+ unlocks the lowest options).
2. Save for a larger down payment (20% or more avoids CMHC premiums).
3. Work with a mortgage broker like Mike Cara to access exclusive lender offers.
4. Compare fixed vs. variable — in 2025, many buyers are leaning toward fixed for security.

Final Takeaway

The best mortgage rates in Peterborough, Ontario, are constantly changing. Don’t rely only on the posted rates you see online. With over 30 years of experience helping Peterborough homeowners, Mike Cara, Mortgage Broker, can guide you to the most competitive option for your needs.

📞 Call 705-772-7878 today for a personalized mortgage rate quote.