Want to live near Toronto but prefer the quieter suburban life instead? Pickering may be just what you’re looking for. With its start in the late 1770s and continuing to grow, Pickering incorporates old-world charm with newer convenience. Pickering has several major employers, such as Ontario Power Generation, and the city continues to welcome families, professionals, and investors. 

If you are considering buying a house here or in Oshawa, understanding the mortgage rates and where the housing market may be going in 2025 is important. Let’s look at some of the current trends and how they will affect your purchase.

A Look at Mortgage Rates in 2025

In recent years, mortgage rates across Canada have climbed above 6%, largely due to inflationary pressures. However, experts believe there’s reason to stay optimistic. Rates may soon start to dip again as monetary policy shifts to support job growth and ease financial conditions. But even if it was relatively rare, the low levels of interest rates we saw during the pandemic in 2020 and 2021 aren’t historically normal compared to today’s rates. Based on the latest numbers, the mortgage rates in Pickering are affordable, contrary to what several people would like to believe! For instance, in May 2025, the interest rate of a 5-year fixed mortgage is about 3%. 84%, whereas a three-year fixed rate is nearly 4%. 

Forecasts for the 30-year fixed mortgage—often considered a benchmark—indicate the following average rates:

Quarter and year	Average rate for 30-year fixed mortgages	Average rate for 15-year fixed mortgages
Q1 2025	5.9%	N/A
Q4 2024	6.32%	5.41%
Q3 2024	6.89%	6.17%
Q2 2024	6.88%	6.16%
Q1 2024	6.66%	5.87%

Though still higher than before the pandemic, rates fell below 3 percent in 2019 — economists are predicting a gradual decline in rates over the next couple of years. These changes might make it easier for you to qualify for some of the best mortgage rates Pickering has ever experienced.

Understanding the Local Lending Landscape

A few months ago, the Bank of Canada left its policy rate unchanged at 2. 75%. The prudent step was to moderate inflation while taking into account prevailing international trade worries. While there has been little overall inflation, shelter costs — primarily housing and rent — continue to be major contributors to the cost of living at present. Here, knowing your mortgage options is essential. 

The smallest changes in rates can have an impact on the long-term affordability of a home, particularly for first-time buyers or those moving up to a bigger house.

What determines your mortgage rates?

One factor does not fit all with mortgage rates. A number of factors determine which rate you’ll receive, including your financial history and details about the property. Here are the major ones: 

• Down Payment: In Canada, you will need to pay mortgage insurance if your down payment is less than 20 per cent — but on the upside, insured mortgages generally have better rates.
• Amortisation Period: For uninsured loans, with at least a 20% down payment, you can stretch your amortisation out to 30 years with higher rates. Mortgages with less than a 20 percent down payment are capped at a 25-year amortization period and are generally offered at better rates.
• Property Use: Whether the property will be your primary or a rental will also factor in. Lenders typically offer better rates for owner-occupied housing than investment properties.
• Mortgage Type: Open mortgages are more flexible but are usually more costly. Renewals generally come with a better deal than a refinance, and new mortgages generally have the strongest rates if you qualify.

First-Time Buyer? Explore These Ontario Programs

There are many programs developed to create less of a burden on those buying their first home on the market. 

• Ontario Land Transfer Tax Refund: You may qualify to receive an amount up to $4,000 to cover the provincial land transfer tax.
• Municipal Down Payment Assistance: Some cities offer programs to help residents cover initial home-buying costs.
• First-Time Home Buyers Tax Credit: This federal program allows you to claim up to $10,000, offering a $1,500 non-refundable tax credit.

These incentives are worth exploring if you’re looking to make your first home purchase more affordable.

The Role of a Mortgage Broker in Oshawa

If you’re intimidated by shopping for rates and lenders, a mortgage broker in Oshawa can be helpful, particularly if you’re shopping around in Durham Region. Mortgage brokers represent many lenders and can often find offers that aren’t on the public market. They also do the paperwork and negotiations for you, freeing up your time and reducing your stress.

Whereas banks can provide only their products, brokers can see a broader spectrum of loan types and terms. If you’re self-employed, have special financial conditions, or even just need the lowest rate available, a broker can pair you with a lender that is right for you.

Your Trusted Realtor in Pickering

While rates and financing are essential, the success of your home search often depends on working with a knowledgeable realtor in Pickering. Local realtors understand market trends, neighborhood growth potential, and property values. 

They can guide you through the buying process, help you identify areas that match your lifestyle, and ensure you’re not overpaying for a property. Whether you’re buying a detached home near the waterfront or a modern condo close to transit, a reliable real estate professional is your best ally. To find experienced agents in the area, explore this Pickering real estate resource

Ready to Make Your Move?

The real estate markets in Pickering and Oshawa are showing strong potential in 2025. With forecasts suggesting future mortgage rate drops and a variety of government incentives available, now could be the perfect time to take the next step. Whether you’re a first-time buyer, a growing family, or an investor, understanding your financing options is key. Start by comparing offers, consulting a mortgage broker in Oshawa, and connecting with a trusted realtor in Pickering. That’s how you’ll unlock the best mortgage rates in Pickering has to offer—and find a place you’ll be proud to call home.