Variable Rate Explorer

Compare Variable Mortgage Terms

Ride the market. Select a term below to instantly find the lowest variable rates.

1 Year 2 Years 3 Years 4 Years 5 Years

Purchase Price

Down Payment

Down Payment %

Amortization (max 35)

Yrs

Frequency

Reset

BMO Bank of Montreal

7.75%

Interest Rate

3 Years • Variable

3 Year Variable Open

Payment & Cost

Est. Monthly Payment $2,153

Interest (5yr) $106,381

Interest (3 Years) $64,895

Inquire

Less

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Strategy: The "Spread" Play

Daily Insight

Smart borrowers check the spread between Fixed and Variable. If Variable is 0.75% cheaper than Fixed, you have a safety buffer against future rate hikes. Currently, you are looking at a 3-Year term—compare this gap!

Mortgage Rates by Lender

Compare rates from Canada's top banks and credit unions.

RBC

RBC Royal Bank Big 5 Bank

TD Canada Trust Big 5 Bank

BNS

Scotiabank Big 5 Bank

BMO

BMO Bank of Montreal Big 5 Bank

CIBC

CIBC Big 5 Bank

NBC

National Bank Major Bank

ING

Tangerine Digital Bank

ATB

ATB Financial Alberta Focus

DES

Desjardins Credit Union

MER

Meridian Credit Union

Connect First Credit Union

First West Credit Union

Choosing a Variable Term

Convertible to fixed Low Penalty (Usually)

With a variable rate, your interest rate moves with the lender's prime rate. The term you choose determines how long you are committed to that specific discount (e.g., Prime - 0.90%).

A 3-year variable is often chosen by those who want flexibility to break early, while the 5-year variable is the standard choice, offering the deepest discount from prime for a longer guaranteed period.

When it shines

Expecting rate cuts (Bank of Canada)
Prioritizing lower breakage penalties
Wanting the option to lock into Fixed later

Watch-outs

Payments may fluctuate with Prime
Budgeting requires comfort with risk
Discounts vary by lender & province

*Guidance only. Actual penalties (3 months interest vs IRD) and conversion options vary by lender.

Variable vs Fixed Snapshot

Rate Behavior

Moves

Locked

Payments

May Vary

Stable

Penalty Cost

Low (3mo Int)

High (IRD)

Flexibility

Convertible

Locked In

Variable Risk Profile

*Visual illustration of potential rate fluctuation over time.

Best Rates by Province

Compare regional lending criteria and exclusive local offers.

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Variable Rate Questions

A variable mortgage rate is quoted based on the lender's Prime Rate. For example, you might be offered a rate of "Prime - 0.50%". If the lender's Prime Rate is 6.95%, your actual interest rate would be 6.45%. If the Prime Rate goes up or down, your interest rate changes with it.

This depends on your mortgage type. With most variable-rate mortgages, your monthly payment stays the same, but more of it goes towards interest and less towards your principal. With an adjustable-rate mortgage (ARM), your actual monthly payment amount will increase or decrease with the Prime Rate.

Yes. Most variable-rate mortgages in Canada are "convertible," which means you can lock into a fixed rate with your current lender at any time during your term, usually without paying a penalty. This is a key feature that provides a safety net if you become concerned about rising rates.

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