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3-Year Variable Mortgage Rates in Ontario

A 3-year variable shortens the lock-in to three years while keeping you tied to the Bank of Canada's prime rate. Useful when you want variable's flexibility without committing for 5 years.

Lowest available: 3.90% · Compared across 6 active products from our lender network.

Updated May 9, 2026
FixedVariable
All terms3 yr5 yr
All rates
Best insured

3.90%

Down payment under 20%

Best uninsured

4.00%

Down payment 20%+ or property over $1.5M

Network average

4.36%

Across 6 active products

$
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Adjust mortgage size and amortization to see your estimated monthly payment for each rate.

Type
CS Alterna Bank3 YearsVariable RateInsured3.90%$2,349/moGet this rate
CS Alterna Bank3 YearsVariable Rate4.00%$2,378/moGet this rate
CIBC Mellon Trust Company3 YearsVariable Rate4.05%$2,392/moGet this rate
CIBC Mellon Trust Company3 YearsVariable RateInsured4.05%$2,392/moGet this rate
ICICI Bank Canada3 YearsVariable RateInsured4.50%$2,521/moGet this rate
ICICI Bank Canada3 YearsVariable Rate5.65%$2,866/moGet this rate

3-Year Variable — historical trend

Lowest available rate, daily, last 39 days

Best rate Network avg
3.80%3.97%4.15%4.33%4.50%Apr 1Apr 10Apr 20Apr 30May 9

-0.05% over 39 days · Source: RATECORE lender network

About 3-Year Variable Mortgages

The 3-year variable is a less common but growing option in Canada — particularly in cycles where borrowers want both rate flexibility (no IRD on exit) and term flexibility (renew at year 3). The product behaves like a 5-year variable but with a 36-month commitment.

Pricing is usually within 5–15 basis points of the 5-year variable. Lenders don't compete as aggressively on this term, so always ask your broker to source it explicitly.

The combined flexibility is the appeal: the 3-month-interest penalty applies if you exit early, and you fully renegotiate after only 3 years.

Pros

  • Variable's low break penalty + shorter term commitment
  • Renews at year 3 — useful in expected-cut environments
  • Captures BoC moves within hours

Cons

  • Slightly higher rate than 5-year variable in most markets
  • Less lender promotion — fewer rate buy-downs
  • Same trigger-rate risk on true variables

Who it suits: Variable-comfortable borrowers who don't want to commit beyond 3 years, or anticipate refinancing then.

Frequently Asked Questions

Why is 3-year variable not advertised more?

Most Canadian lenders concentrate marketing on 5-year products. 3-year variable is available — just quoted on request.

Is the break penalty different from a 5-year variable?

No — variable break penalties are 3 months' interest regardless of the term length.

Related rates

Variable Rate

A variable rate moves with the Bank of Canada. When prime drops, your mortgage cost drops; when prime rises, your cost rises. Historically variable has out-performed fixed in Canada — but only for borrowers who can stomach the volatility.

5-Year Variable

A 5-year variable combines the longest mainstream term with full prime-rate exposure. Your rate moves with every Bank of Canada announcement, but the term itself — and the lender — is locked for 60 months.

3-Year Fixed

A 3-year fixed locks your rate for three years — a popular choice when borrowers expect rates to fall and want to renew into a lower environment sooner.

5-Year Fixed

The 5-year fixed is Canada's most popular mortgage — your interest rate and monthly payment are locked for five years, regardless of what the Bank of Canada or bond market does.

See all mortgage rates

Rates shown are sourced from active lenders in the RATECORE network and are subject to change without notice. OAC — Subject to approval. The rate you qualify for depends on credit score, loan-to-value, amortization, property type, and insurance status. RATECORE is a rate comparison platform; we are not a licensed mortgage brokerage.

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