3-Year Variable Rate Mortgage

Do you think a 3-year variable rate mortgage is right for you? Find the best mortgage rate for your home.

Rates by location
Find the best rates in your area by selecting your province
Home Value
The current purchase price or appraised value of your home
Rate type
The type of the mortgage you are looking for
Down payment
The portion of the purchase price you will be paying upfront
Current mortgage
The remaining amount on your current mortgage

3-year variable mortgages in Canada

Hunting for the best mortgage rate requires you to know how much mortgage security and flexibility you require. A 3-year variable-rate mortgage is a great option for homebuyers who are looking for a variable interest rate with a short-term commitment.

A variable mortgage rate changes with the market interest rate, known as the prime rate. If the prime rate of your lender increases, your interest rate increases, and vice versa when prime rate falls. There are a number of benefits to choosing a variable rate, one of the main ones being it allows you to take advantage of a lower mortgage rate when interest rates are falling. They also entail lower prepayment penalties, making them a good choice for those unsure about their long-term plans and who may need to break their mortgage early.

With variable rates, however, you face more risk given that rates can also rise over the course of your term. On RATESDOTCA, you can easily compare mortgage rates from Canada’s leading banks, brokers, and mortgage lenders.

Learn more about fixed and variable mortgages to see which option will work the best for you.

Is a 3-year variable mortgage right for me?

A 3-year variable mortgage is a good option if there is any chance you may need to sell your home or re-negotiate your mortgage in the near future. This is because variable rates entail lower prepayment penalties for breaking your mortgage early, typically a maximum of three months’ interest. Choosing a 3-year variable term over, say, a 5-year fixed could save you a considerable amount of money in penalty costs.

Historically, variable rates have been lower than fixed mortgage rates of the same term. This is because fixed rates ensure your payments will not rise over the course of your term. In other words, you typically have to pay a slightly higher rate for that peace of mind and rate stability. However, in 2020 fixed rates fell to historic lows, and in some cases are priced even lower than comparable variable rates.

Use our Mortgage Payment Calculator to see what your mortgage payments will look like under different scenarios.

mortgages mascot.png

Find a mortgage broker

Engaging a mortgage broker before renewing can help you make a better decision. Mortgage brokers are an excellent source of information for deals specific to your area, contract terms, and their services require no out-of-pocket fees if you are well qualified.

Here at RATESDOTCA, we compare rates from the best Canadian mortgage brokers, major banks and dozens of smaller competitors.

Latest mortgage articles
Chance of a “Micro” Rate Cut Fades as BoC Delivers More Optimism
In recent weeks, talk of a potential “micro” interest rate has grown louder. That’s largely due to rising COVID case counts and more restrictive lockdown measures.
People Still Want to Buy Despite Affordability Challenges. How to Do it if Your Budget’s Tight
Despite home prices soaring out of reach for many, a large majority still believe homeownership is a worthwhile pursuit.
A New One-Stop Resource for Comparing Mortgage Rates
Have you ever found yourself wishing that someone would come up with an easy way to compare the lowest rates for all terms, depending on your equity?