3-Year Open Variable Rate Mortgage

Learn the pros and cons of a 3-year open variable mortgage. Find the best mortgage rate for your home.

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3-year open variable mortgages in Canada

When you are comparing mortgage rates, you should know how much mortgage security and flexibility you require. A 3-year open variable-rate mortgage gives you the utmost flexibility when it comes to prepayment options. Having an open mortgage allows you to repay the loan, in full or in part, at any time prior to maturity without incurring any penalties.

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. One of the benefits of having a variable mortgage is if interest rates fall, your monthly payments will fall as well. Or, if you have a fixed-payment variable mortgage, more of your payment will go towards paying down your principal as interest costs drop. This will help you pay off your mortgage faster.

On RATESDOTCA you can easily compare mortgage rates from Canada’s leading banks, brokers, and mortgage lenders.

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

Pros and cons of a 3-year open variable rate mortgage

Are you considering a 3-year open variable rate mortgage? If so, here are some of the pros and cons you should consider to see if this mortgage type is suited for you.


  • Faster debt repayment: A great option for homeowners who want to pay off their debt faster. If you’re an investor who flips properties for profit, an open variable rate mortgage can be beneficial for its added repayment flexibility.
  • Avoid prepayment penalties: With an open mortgage, you avoid prepayment penalties should you want to pay out your mortgage before maturity.
  • Option to lock in a fixed rate: Some lenders may allow you to convert your mortgage to a closed fixed or variable mortgage.


  • Comparatively higher rates: Open mortgage rates are generally about 1 percentage point higher than closed terms due to the repayment flexibility they offer.
  • Rising interest rates: Interest rates may increase and cost you more than a comparable fixed mortgage rate if prime rate increases.

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

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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.

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