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RATECORE

5-Year Variable Mortgage Rates in Ontario

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.

Lowest available: 3.45% · Compared across 27 active products from our lender network.

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

3.45%

Down payment under 20%

Best uninsured

3.80%

Down payment 20%+ or property over $1.5M

Network average

4.14%

Across 27 active products

$
Show

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

Type
CanWise5 YearsVariable RateInsured3.45%$2,224/moGet this rate
Meridian Credit Union5 YearsVariable RateInsured3.54%$2,249/moGet this rate
Equitable Bank5 YearsVariable RateInsured3.60%$2,266/moGet this rate
First National Financial5 YearsVariable RateInsured3.70%$2,293/moGet this rate
CS Alterna Bank5 YearsVariable RateInsured3.70%$2,293/moGet this rate
CMLS Financial5 YearsVariable RateInsured3.70%$2,293/moGet this rate
CS Alterna Bank5 YearsVariable Rate3.80%$2,321/moGet this rate
CanWise5 YearsVariable Rate3.85%$2,335/moGet this rate
Meridian Credit Union5 YearsVariable Rate3.89%$2,347/moGet this rate
MCAP5 YearsVariable RateInsured3.90%$2,349/moGet this rate
CMLS Financial5 YearsVariable Rate3.95%$2,363/moGet this rate
CIBC Mellon Trust Company5 YearsVariable RateInsured3.95%$2,363/moGet this rate
Tangerine Bank5 YearsVariable RateInsured4.00%$2,378/moGet this rate
Equitable Bank5 YearsVariable Rate4.05%$2,392/moGet this rate
TD Mortgage Corporation5 YearsVariable RateInsured4.09%$2,403/moGet this rate
CIBC Mellon Trust Company5 YearsVariable Rate4.10%$2,406/moGet this rate
First National Financial5 YearsVariable Rate4.19%$2,432/moGet this rate
TD Mortgage Corporation5 YearsVariable Rate4.19%$2,432/moGet this rate
MCAP5 YearsVariable Rate4.20%$2,435/moGet this rate
ICICI Bank Canada5 YearsVariable RateInsured4.45%$2,507/moGet this rate
Simplii Financial5 YearsVariable RateInsured4.45%$2,507/moGet this rate
Bank of Montreal5 YearsVariable RateInsured4.53%$2,530/moGet this rate
National Bank of Canada5 YearsVariable RateInsured4.60%$2,550/moGet this rate
National Bank of Canada5 YearsVariable Rate4.60%$2,550/moGet this rate
Bank of Montreal5 YearsVariable Rate4.70%$2,580/moGet this rate
Simplii Financial5 YearsVariable Rate4.95%$2,654/moGet this rate
ICICI Bank Canada5 YearsVariable Rate5.70%$2,881/moGet this rate

5-Year Variable — historical trend

Lowest available rate, daily, last 39 days

Best rate Network avg
3.30%3.55%3.80%4.05%4.30%Apr 1Apr 10Apr 20Apr 30May 9

Unchanged · Source: RATECORE lender network

About 5-Year Variable Mortgages

The 5-year variable is the most popular variable term in Canada. The lender locks you in for 60 months but ties your interest rate to a discount or premium against their prime rate (e.g., Prime − 0.65%). Every scheduled BoC announcement can move your rate up or down within hours.

The 5-year variable has historically delivered some of the strongest savings versus 5-year fixed — the Moshe Milevsky studies showed variable outperforming fixed in roughly 9 out of 10 historical 5-year windows. But the 2022–2024 hiking cycle reminded everyone that 'most of the time' isn't 'always'.

Break penalty is the headline advantage: regardless of when in the 5 years you exit, the penalty is typically just 3 months' interest. That's a fraction of the IRD on a 5-year fixed, and it makes variable far more flexible if life circumstances change.

Pros

  • Lowest break penalty (~3 months' interest) over the full 5 years
  • Captures every BoC rate cut immediately
  • Easy mid-term conversion to a fixed product
  • Historically out-performs 5-year fixed

Cons

  • Rate exposure for the full 60 months
  • Trigger rate risk on true variables
  • Renewal still happens at year 5 — same as 5-year fixed

Who it suits: Long-horizon homeowners who want the cheapest expected cost over 5 years and accept rate volatility in exchange for low exit costs.

Frequently Asked Questions

How much can I save vs. 5-year fixed?

It depends on the spread at your start date and the BoC's path. In a steady-rate or cutting environment, savings of 0.50–1.50% per year are common. In a hiking cycle, variable can cost more.

What if I want to lock in mid-term?

Most lenders let you convert to a fixed term of equal or longer length at any time, with no penalty. The fixed rate will be whatever's posted that day.

Is 5-year variable insured?

Yes — insurance eligibility is based on down payment and property value, not rate type. Insured 5-year variables get the same lower-rate benefit as insured fixed.

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.

3-Year Variable

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.

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.

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.

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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