What is the best 5-year variable mortgage rate in Canada today?
As of October 12, 2026, the best 5-year variable insured rate through brokers is 3.25% (Prime − 1.20%). Among major banks, RBC posts the lowest variable rate at 3.88% (Prime − 0.57%).
Last updated
Best 5-Year Variable Mortgage Rate Canada 2026
Variable mortgage rates are currently at their lowest level since 2022, sitting below fixed rates for the first time in three years. Compare today's best 5-year variable rates from major banks and brokers.
Best broker rate
3.25%
5Y variable · insured
Best bank rate
3.88%
5Y variable · special
Prime rate
4.45%
Bank of Canada
| Lender | 5Y variable rate | Prime rate | Discount to prime |
|---|---|---|---|
| RBC | 3.88% | 4.45% | Prime - 0.57% |
| TD | 4.24% | 4.60% | Prime - 0.36% |
| CIBC | 4.20% | 4.45% | Prime - 0.25% |
| Best broker (WOWA) | 3.25%best | 4.45% | Prime - 1.20% |
Rates updated every Monday. Bank rates are special/discounted rates as posted on each lender's website. Broker rates represent the lowest available insured rates from aggregators. Not financial advice — always confirm rates directly with your lender.
Rates verified Oct 15, 2026
About the 5-year variable mortgage
Variable rates move with your lender's prime rate, which tracks the Bank of Canada overnight rate. When the Bank cuts rates, your payment drops. When it raises rates, your payment rises. Currently priced lower than fixed rates, variable mortgages are attractive for borrowers who can handle payment uncertainty.
Frequently Asked Questions
Will variable mortgage rates go up or down in 2026?
Variable rates move only when prime changes, and prime follows the Bank of Canada. The Bank has held its overnight rate at 2.25% for 7 consecutive announcements, so prime has stayed at 4.45%. Check the next announcement date on our mortgage rates page.
What is the difference between variable and adjustable rate mortgages?
With a variable rate mortgage, your payment stays the same but the portion going to principal vs interest changes. With an adjustable rate mortgage (ARM), your actual payment changes when rates move. Most Canadian variable mortgages are the fixed-payment type.
Should I switch from fixed to variable in 2026?
The best variable rate is currently 3.25% vs 4.34% for the best 5-year fixed — a 1.09% gap. Variable only saves money if prime stays flat or falls, and breaking a fixed mortgage early can cost thousands in penalties. Run both rates through the mortgage calculator before switching.
Educational reference only. Not financial or lending advice.