Updated June 8, 2026 Best Variable Mortgage Rates Variable rate mortgages fluctuate with the prime rate, which is influenced by Bank of Canada policy. They often start lower than fixed rates and can provide significant savings over time. Best Variable 3.50% Apply Now → Best 5-Yr Fixed 4.04% Apply Now → Best Variable 3.50% Apply Now → Get Your Free Quote Calculate Payments Compare Best Variable Mortgage Rates Get personalized rates for your city See local market data and mortgage tips Enable Location Updated June 8, 2026 Today's Best Mortgage Rates Compare discounted rates from Canada's top lenders. These are actual rates you can get - not posted bank rates. Prime Rate 4.45% Apply Now → Best 5-Yr Fixed 4.04% Apply Now → Best Variable 3.50% Apply Now → Featured Mortgage Rates Best discounted rates available today – sorted by lowest rate Term Lender Best Rate 5-Year Variable National Bank 3.50% Get This Rate 3-Year Fixed National Bank 3.89% Get This Rate 4-Year Fixed National Bank 3.99% Get This Rate 5-Year Fixed National Bank 4.04% Get This Rate 2-Year Fixed National Bank 4.24% Get This Rate 7-Year Fixed National Bank 4.54% Get This Rate 1-Year Fixed MCAP 4.69% Get This Rate 10-Year Fixed MCAP 4.69% Get This Rate Ready to Lock In Your Rate? Get pre-approved in minutes. No obligation, no credit impact. Get Approved Today * Rates shown are discounted rates for insured mortgages. Rates may vary based on credit profile, down payment, and property type. Subject to change without notice. OAC. How Variable Compares to Other Terms 1-Year Fixed 5.04% +1.54% 2-Year Fixed 4.24% +0.74% 3-Year Fixed 3.89% +0.39% 5-Year Fixed 4.04% +0.54% Who Should Choose a Variable Mortgage Rates? Ideal For: Borrowers comfortable with payment fluctuations Those who believe rates will stay stable or decrease Aggressive debt payers who can absorb increases Borrowers who may break their mortgage early (lower penalties) Key Considerations Variable rates come in two types: variable rate (payment stays same, amortization changes) and adjustable rate (payment changes with prime). Understand which type your lender offers. 💡 Variable Rate Tip: Variable rates are expressed as Prime minus a discount. The current Prime Rate is 4.45%. A variable rate of 3.50% means a discount of 0.95% below Prime. Frequently Asked Questions About Variable Mortgages What is the best variable mortgage rate in Canada today? The best variable mortgage rate available today is 3.50%, which is Prime (4.45%) minus 0.95%. This discount is locked in for your entire term. How does a variable rate mortgage work in Canada? Variable rates move with the Bank of Canada's Prime Rate. When Prime goes down, you pay less interest. There are two types: adjustable-rate (payments change with each rate adjustment) and variable-rate (payments stay fixed but the interest/principal split adjusts, affecting your amortization). What is the penalty for breaking a variable rate mortgage? Variable rate mortgages typically have a penalty of only 3 months' interest—significantly less than the IRD penalty on fixed-rate mortgages. On a $500,000 mortgage at 3.50%, that's approximately $4,375. This makes variable rates attractive if you may need to break early. Is variable or fixed better right now? With the current variable at 3.50% vs. 5-year fixed at 4.04%, variable offers an immediate saving of 0.54%. If the Bank of Canada holds or cuts rates, variable will likely outperform. If rates rise significantly, fixed provides protection. Your risk tolerance should guide this decision. How often does the variable rate change? The variable rate changes whenever the Bank of Canada adjusts its overnight rate, which happens at 8 scheduled announcement dates per year. Between announcements, your rate stays the same. Your discount from Prime (currently 0.95%) remains fixed for the entire term. What is the difference between variable and adjustable rate mortgages? With a variable-rate mortgage, your payment stays the same but the interest-to-principal ratio changes—if rates rise, more goes to interest and your amortization extends. With an adjustable-rate mortgage, your actual payment changes with each rate adjustment. Adjustable-rate gives you more transparency and ensures your amortization stays on track. Can I convert my variable rate to a fixed rate? Yes, most variable rate mortgages include a conversion privilege allowing you to switch to a fixed rate at any time without penalty. The fixed rate offered will be the lender's current rate for the remaining term, not a discounted rate. This acts as a safety net if rates rise sharply. What happens to my variable rate if the Bank of Canada raises rates? If the BoC raises the overnight rate by 0.25%, your variable rate increases by the same amount (from 3.50% to 3.75%). On a $500,000 mortgage, that adds approximately $104/month. However, you can convert to fixed at any time if rate increases concern you. Get Your Personalized Variable Rate The rates above are starting points. Your actual rate depends on credit score, down payment, and property type. Speak with a mortgage expert to find your best option. Get Your Free Quote Calculate Payments Verico MortgagePal Inc, Mortgage Brokerage Lic#12685. Regulated by the Financial Services Regulatory Authority of Ontario (FSRA). Related Mortgage Guides BC CMHC Insurance: When You Need It and How It Works Kamloops Real Estate: Thompson-Okanagan Gateway Rental Property HELOC vs Refinance for Renovations: The 2026 Comparison Investment Property Renewal: Why Your Bank Is Not Offering the Best Rate (And What to Do About It) Refinancing a Rental to Buy Another: The Equity Take-Out Strategy in 2026
